Discover and read the best of Twitter Threads about #interestrates

Most recents (24)

Why gold should be the asset to focus on for the next few years?

#gold #investing #wealthcreation

A Thread!

1/13
M2 which is a broad measure of money supply, has grown 81% in the last 7yrs to nearly $20Trn. An increase in the supply of money typically lowers interest rates, which generates more investment and puts more money in the hands of consumers. Hence stimulating spending.

#gold
2/13
Bonds struggled during the last major stagflationary period, in the late 1960s. Rise in oil prices,unemployment, loose monetary policy pushed the core CPI Index to a high of 13.5%. The Fed had to raise interest rates by nearly 20%.

#gold #bonds #interestrates

3/13
Read 14 tweets
Daily Bookmarks to GAVNet 11/12/2021 greeneracresvaluenetwork.wordpress.com/2021/11/12/dai…
The Real Tantrum Should Be Over The Disturbing Lack of Celebration (higher yields)

alhambrapartners.com/2021/11/02/the…

#yield #BondMarket #CentralBank #normalization #InterestRates
Identification of LZTFL1 as a candidate effector gene at a COVID-19 risk locus

nature.com/articles/s4158…

#SARSCoV2 #genetics #risk #RespiratoryFailure #GainOfFunction #variants #TherapeuticTargets
Read 8 tweets
Daily Bookmarks to GAVNet 09/02/2021 greeneracresvaluenetwork.wordpress.com/2021/09/02/dai…
CEO Ridiculed for Raising Minimum Wage to $70K Has the Last Laugh

opednews.com/articles/CEO-R…

#IncomeDisparity #MinimumWage #FinancialPerformance
Cross-reactive CD4+ T cells enhance SARS-CoV-2 immune responses upon infection and vaccination

science.org/doi/10.1126/sc…

#SARSCoV2 #ImmuneResponses #infections #vaccinations #antibodies
Read 8 tweets
Is there an incoming policy error by the Federal Reserve? $DXY #FederalReserve #Dollar #Policy #Fed

Thread 1/
Over the past several weeks, we have seen significant Central Bank actions globally. This reflects a market flush with cash and a desire by the Federal Reserve to hold short-term rates positive. 2/
Mid-June 2021 FOMC Summary:
1. Unchanged rate and QE policy
2. Reverse Repo rate increase to 5bps
3. IOER increase to 15 bps
4. Dot plot showing rate hikes sooner than expected
3/
Read 17 tweets
Daily Bookmarks to GAVNet 04/12/2021 greeneracresvaluenetwork.wordpress.com/2021/04/12/dai…
The Weekly Quill – The Hope Diamond in the Rough

linkedin.com/pulse/weekly-q…

#history #diamonds #mining
You Might Have Earned It, But Don’t Forget That Your Wealth Came from Society

evonomics.com/wealth-of-huma…

#wealth #SocialInstitutions #value #InformationProcessing #profit #power #responsibility
Read 10 tweets
Daily Bookmarks to GAVNet 04/02/2021 greeneracresvaluenetwork.wordpress.com/2021/04/02/dai…
Linguistic tricks to grab your online audience’s attention

nature.com/articles/d4158…

#linguistics #AudienceAttention #engagement
Mistrust of the CBO is unfortunately a growing bipartisan avocation

marginalrevolution.com/marginalrevolu…

#CongressionalBudgetOffice #data #trust #reports #politics
Read 10 tweets
Daily Bookmarks to GAVNet 03/27/2021 greeneracresvaluenetwork.wordpress.com/2021/03/28/dai…
Reconsidering Monetary Policy: An Empirical Examination of the Relationship Between Interest Rates and Nominal GDP Growth in the U.S., U.K., Germany and Japan

sciencedirect.com/science/articl…

#MonetaryPolicy #InterestRates #GDP #NominalGrowth
Read 8 tweets
Here's a thread of thoughts to demystify complexity and quantitatively display how interest rates impact the value of future cash flows: 🧵👇

#Markets #InterestRates #stocks
1) Recently and especially after yesterday's FOMC announcements about monetary policy updates, several investors are discussing the role of changing interest rates and their impact on financial assets, particularly "growth stocks" and "value stocks".
2) Definitions:

1. DCF = Discounted cash flow analysis
2. Discount rate = The rate used to discount future cash flows back to their present value when determining the time value of money. Some investors consider this rate to be the opportunity cost of their investment.
Read 21 tweets
A Thread 🧵on how bond yields impact stock market ?

Must read for beginners in #StockMarket.

(RT to maximize reach.)

#Bonds #BondYields #StockMarket #Investing
What is #bond ?

Bonds are issued by governments and corporations when they want to raise money. By buying a bond, investor is giving the issuer a loan, and issuer agrees to pay the investor back the face value of the loan on a specific date, and to pay periodic interest as well.
What is bond yield ?

Bond yield, on the other hand, is the return that an investor gets on that bond or on a particular government security.

#Investing #StockMarket #Bonds
Read 8 tweets
🚨*𝐍𝐈𝐄𝐒𝐑 𝐁𝐮𝐝𝐠𝐞𝐭 𝟐𝟎𝟐𝟏 𝐂𝐡𝐚𝐫𝐭𝐩𝐚𝐜𝐤* 🚨

All you need to know ahead of next week's #Budget in one... THREAD 👇

1/19
#CovidEconomics
#BudgetSpeech2021
#EconTwitter
The #Budget2021 comes at a critical time when the UK is in the middle of battling the #pandemic and the economy is substantially weakened with uneven effects at industry, household & region level.

Read the economic context to #Budget2021 here 👇

2/19
niesr.ac.uk/publications/u…
We project the UK economy to contract again in 2021Q1 due to the second wave and the winter #lockdown as well as the effects of post-#Brexit adjustment, bringing #GDP to some 11% below pre-#pandemic levels

3/19
Read 19 tweets
Daily Bookmarks to GAVNet 02/15/2021 greeneracresvaluenetwork.wordpress.com/2021/02/15/dai…
Convicted or not, Trump is history – it's Biden who's changing America

theguardian.com/commentisfree/…

#PartisanPolitics #SystemsChange #influence
Read 10 tweets
Daily Bookmarks to GAVNet 12/09/2020 greeneracresvaluenetwork.wordpress.com/2020/12/09/dai…
A New Theorem Maps Out the Limits of Quantum Physics | Quanta Magazine

quantamagazine.org/a-new-theorem-…

#physics #quantum #limits
Elementary particles part ways with their properties

phys.org/news/2020-12-e…

#physics #particles #quantum
Read 8 tweets
No surprises in today's #RBIPolicy
✅Key rates unchanged
✅Accommodative stance continues
✅Inflation an area of concern
✅Growth: green shoots visible
✅Bond markets will see deeper participation
Policy rates:
- Repo: 4.00%
- Reverse Repo: 3.35%
- MSF: 4.25%
- Bank Rate: 4.25%

Policy stance:
Remains accommodative into next financial year

Policy Tools:
Will continue to use OMO, TLTRO, and Operation Twists to manage yields

#reporate #InterestRates
#Inflation outlook adverse relative to expectations
Food prices could remain elevated despite a good Kharif output
Q3: 6.8%
Q4: 5.4%
H1 (FY22): 4.6% -5.2%
Read 6 tweets
Should #NRIs based out of Singapore and the US #invest in India now?
Should we #invest now or wait until the #USElections2020 are over?
What happens to my #portfolio if #Trump doesn’t come back to power?
Read 13 tweets
The Chinese #economy stayed on the hot side in 2002-2011. The average #GDP deflator was 4.6%; the real #interestrates was lower than the neutral one. But since 2012, the economy was on the cold side, with the average GDP deflator falling to 2.1% in 2012-2019...1/6
The real interest rate was lower than the neutral one in 2002-2011. During this period, although #monetary policies remained tight with an overall fiscal surplus, there was still room for further tightening both monetary and fiscal policies when we look back now...2/6
In 2012-2019, it was completely the opposite. GDP deflator was low and the real interest rate was higher than neutral. Monetary policy was relatively loose...3/6
Read 6 tweets
#RBI cut by 40bps each of these👇
#Repo rate to 4%
#ReverseRepo to 3.35%
#BankRate to 4.25%

Decision was reached after 5:1 vote,with #ChetanGhate,lone voice calling for 25 bps cut

#MPC meet was held ahead of schedule from 3rd-5th,June

#EMI #moratoroum extended by 3 more months
Moratorium extension till 31st August 2020,is both timely &reflective of @narendramodi govt's alacrity--Big relief to #MiddleClass

Measure to convert #moratorium interest payment into #TermLoan payable in FY21,is helpful

This will reduce #NPAs &stress on banks' balance sheets
#RBI's cut in #Repo will reduce cost of funds&extension of #moratorium will be supportive of financial stability;#Rates across #YieldCurve will move lower from current levels

Fall in #ReverseRepo rate will disincentivise banks from #hoarding #liquidity&coax them to lend

#Covid
Read 10 tweets
The @ecb response to #COVID19.

My new blog (link below) and a thread on what #centralbanks should do to face the crisis

(1/9)
In short
- Households & firms need massive emergency #credit to cope with #COVID19
- #centralbanks are critically accommodating credit markets
- CBs must guarantee sustainable credit conditions
- CBs must ensure that credit go where it's needed
- #HelicopterMoney is option
(2/9)
#fiscalpolicy is crucial to ensure most vulnerable get the help needed. Ambitious fiscal plans have been pledged.

Volume and price countries get on markets is key to scale-up public response to #COVID19 and for #sustainability of sovereign debt.

(3/9)
Read 9 tweets
Human civilization is in big trouble. The world has started believing that #Centralbankers are like the #Avengers wielding the superpower of cutting interest rates. Any crisis they can solve by cutting rates apparently.
Tomorrow even if there is an #alieninvasion, humans may first line up outside central banks to cut #interestrates and feel safe !!!

#usfed #fed #zerointerestrates
And the #usfed cuts rates by #50bps
Read 3 tweets
(1/n) One more time so my position is clear, here is something I shared earlier this morning:

"Certainly, I had no idea of the magnitude or timing of this virus news. So, I didn't know/couldn't know we'd lose 1,900 Dow points in two days!"
(2/n) "But I think the swift, severe, virus-related reaction shouldn't blind us to the broader, longer-term issues facing this market/economy. In other words, while virus news is driving the short-term action, much more is going on here and has been for a few quarters now."
"A few observations supporting this: Interest rates didn't just start falling the last few weeks. They've been dropping since Q4 2018. The curve (3-month/10-year) didn't just invert due to virus news. It flattened, then inverted, for ~18 months in 2018 and 2019."
Read 7 tweets
Let us briefly #Reflect on the #SARB's first #MPC #Meeting of 2020 and their #MonetaryPolicy decision to cut rates by 25bps from 6.5% to 6.25%...
Everyone with some interest in such matters is without a doubt already aware that the #SouthAfricanReserveBank's #MonetaryPolicyCommittee cut its key #PolicyRate, the #Repo by 25 basis points from 6.5% to 6.25%. The move can perhaps best be summarised by the following statement:
It is clear from the statement above that the SARB moved on the back of a growth story. They would want to see the level of #inflation creep closer to 4.5% but they didnt tighten to achieve this end. Rather, they provided more accommodation for growth & inflation might pick up...
Read 11 tweets
1/ AT ONE TIME, EVERY PIECE OF #PAPER MONEY WAS BACKED BY #GOLD. REMEMBER… FOR EVERY 20 DOLLAR BILL… THERE WAS $20 WORTH OF GOLD IN A #GOVERNMENT VAULT. NOT ANYMORE.

TODAY, GOVERNMENTS CREATE #CURRENCY BY FIRST CREATING BONDS OR TREASURY-BILLS.
2/
THESE #BONDS ARE SOLD IN THE #MARKET… GENERATING FUNDS FOR THE GOVERNMENT THAT ISSUED THEM.

LARGE #BANKS BUY U.S. BONDS TO FLIP THEM… SELLING THEM TO THE #FEDERAL RESERVE AT A PROFIT -- THIS IS THE MAGIC MONEY MACHINE. #FED
3/ YOU SEE… THE FED IS AMERICA’S #CENTRALBANK. BUT IT DOESN’T HAVE ANY MONEY, NO #CASH ON ITS BALANCE SHEETS.

WHEN A BANK BUYS A BOND AND TAKES IT TO THE FEDERAL RESERVE, THE FED SIMPLY SAYS “THANK YOU MR. BANKER, HERE’S THE PRINCIPAL AND SOME #PROFIT.”
Read 12 tweets

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