The bond market seems be warning us of an impending recession. Which means the Fed may soon have to decide whether to reverse gears on its current tightening of interest rates. Keris Lahiff charts the situation for CNBC. The headlines are full of stories about a potential trade war, but those focusing on it may be missing the bigger economic picture. That’s according the Liz Ann Sonders and her team at Schwab, who point to recent reports about the state of the US economy. For years stock brokers and dealers have claimed to be financial advisors. Now that may be changing as the industry is confronted with rulings from the 5th Circuit Court of Appeals. Michael Kitces reports on the latest developments.
The Bond Market Is Doing Something That Hasn’t Happened In Eleven Years, And It Could Stop The Fed In Its Tracks– The Federal Reserve might be sounding the hawkish call, but a developing pattern in the bond market could cause it to pump the brakes. The yield curve, which tracks the difference between longer- and shorter-term bond yields, has begun to flatten. That situation is well-known as a portent of a potential economic recession. Read more…
Schwab Market Perspective: March Market Madness!- Market action has been short-term focused, leading to some volatile daily moves. Don’t ignore what happens on any given day, but keep it in context of the bigger picture. The economy shows few signs of slowing down materially, but markets remain skittish about a possible trade war. The Fed looks to continue its gradual path of normalization and doesn’t seem overly concerned with the recent stock volatility. Liz Ann Sonders, Chief Investment Officer at Schwab, and her team explain in this article. Read more…
Stock Brokers Are Not Financial Advisors: 5th Circuit Court Of Appeals– The brokerage industry argued that their representatives (stockbrokers) are not financial advisors and therefore should not be subject to a fiduciary standard. Instead they are product sales people. The 5th Circuit Court of Appeals agreed with them. Michael Kitces explains in this article. Read more…
John R. Day, Bill Ennis, Stephanie Hall and Matt Heller