The Fed’s Monetary Policy: How Long Can the Hawks Fly?
Before Trump, markets had been gripped with anxiety whenever the US FOMC was approaching a decision about hiking the interest rate.
The Fed has started the rate normalization process only recently and has a long way to go before the rates come back to pre-Lehman-collapse levels.
Markets will be monitoring any comments from the Fed going forward, and every future meeting will likely be lively in terms of the possibility of another rate hike.
Why Kinder Morgan’s Earnings Fell in 1Q17
The Natural Gas Pipelines segment is Kinder Morgan’s largest business segment in terms of earnings before depreciation and amortization. In 1Q17, this segment accounted for 54% of the company’s total EBDA.
Of the analysts surveyed by Reuters, ~73% rated Kinder Morgan (KMI) as a “buy,” ~27% rated it as a “hold,” and none of the surveyed analysts rated it as a “sell.”
Kinder Morgan’s (KMI) net debt at the end of 1Q17 stood at $37.8 billion, which was $317 million lower than at the end of 2016.
How the Removal of Dodd-Frank Could Affect Banks
While the Dodd-Frank Act was passed to avoid another financial crisis, it has crippled banks’ profitabilities over the years due to higher capital requirements.
HEDGING AGAINST INFLATION Property stocks and REITs have often been viewed as inflation hedges because expected inflation will affect prices of real estate, and rental income tends to rise along…
RETURNS AND RISKS OF REITS REIT and property stock performance has been relatively strong over the long term, especially when compared with traditional bond and equity indices. Since 1992, the…