Applying Economic Date to Interest Rate Volatility

Applying Economic Date to Interest Rate Volatility    

 Bull

• Dollar has fall to record lows - US exports increase & imports decrease
  • Fundamental for the dollar remain poor because the Fed's the only major central bank that's likely to cut interest rates
  • Fallen 7% since early January 2007
  • Interest Rate Futures show 72% odds Fed will lower borrowing costs by 50% on September 18.
• McCafe - the Starbuck's for McDonald's - is selling cheaper coffee on price with high quality to go with it.

• Oil climbed to $79.29 a barrel as supplies dropped the most this year
• Moody's stating, "defaults by US companies will more than double in the coming year as investors shun (run from) riskier debt."
  • Japanese investors' tolerance for risk is decreasing - third month in a row Japan sold more US bonds than purchased
    • Courage for investing overseas is weakening.
• Inflation:
  • Wheat prices have doubled in the last 12 months as global stockpiles are at a 26yr low.
    • Manufactures are forced to raise prices for; beer, bread, livestock feed, noodles, cakes, etc.
    • Some bakery manufactures are raising prices for the first time in 24 years.