During the years that followed the great financial crisis of 2008, investors faced increasing challenges in understanding the economic cycle and, even more, in deciphering the trend of stock markets and inflation.
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The Federal Reserve raises interest rates by 0.25%. Yesterday, the FED decided to increase interest rates by 0.25%. This takes the official target range of FED FUNDS to 4.75% to 5.00%.
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It was widely expected that the first quarter of 2023 would have seen the world economy falling into a recession. As often happens, expectations are being disattended and the last economic data point to an economy that is more resilient than we could have expected.
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As expected, this week, central banks executed another round of interest rates hikes. This is the last one of a series of very quick hikes that they decided in order to regain the control of inflation. The Federal Reserve raised official rates of a total of 4.50% since last year, and the ECB increased interest…
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This week was dense of very important events for financial markets. The first one was the closely watched Consumer Price Inflation from the US. Inflation came out lower than expected, even if it still remains at the quite elevated level of +7.1% since one year ago (it was expected at +7.3%). In this link, you…
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After a period of low interest rates, Central Banks around the would raised interest rates aggressively to contain inflation. The Federal Reserve led the way higher. In this post, we will examine the mechanics of how the central bank fixes interest rates and what are the main interest rates for short term investing.
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Money market funds are funds that invest in short and usually quite safe money market instruments. Given the fact that after years of negative interest rates even short-term rates are quickly getting back in positive territory, these funds are attracting a lot of interest from investors. For example, in the US you are paid almost…
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The fastest rises in history During the last few months, we have witnessed one of the quickest increase in official interest rates ever (in particular, we refer to the European Central Bank (ECB) and the US Federal Reserve (FED)).
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Since the beginning of March, a few incidents happened in the banking sector. This came quite unexpectedly at a time when everybody was saying that the banking sector is nowadays much more resilient than in the past. What went on and could this mean a new crisis like 2008?
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During the last few days, one important US bank was closed. It was all stunningly quick. Silicon Valley bank was considered one of the best US banks. In just a couple of days it failed, and it was the biggest banking failure of the last 15 years and the second ever.
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