Providence Capital

It is no longer news that January brought a cold wind over markets. One that came from the Federal Reserve, which decided to let the wind blow from a different angle. No more endless money creation, the tap in the US is closing even faster than first announced. Moreover, the price of money could also … Read more

How do we look back on the financial markets of the past year? Just like in 2020, bond markets ended the year in negative territory. Incidentally, this was not accompanied by significant interest rate hikes. But with the high interest rate sensitivity of most bond markets, it takes very little to get this asset class … Read more

Finally, after nearly a year of excruciatingly soaring inflation rates, Fed Chairman Powell threw in the towel. The ‘temporary’ aspect of inflation was the confusing issue and probably not entirely true. Also the labour market had become so much tighter that continuous liquidity support for financial markets had to be phased out more rapidly. Officially … Read more

Financial markets have long remained in denial, but now the diagnosis of inflation is becoming more widely shared. As to how this inflammation of our money could arise, I have devoted enough newsletters. But what could be the consequences and how do we fight this infection? Will we soon be able to get a free … Read more

Everything is temporary, but sometimes temporality lasts a little longer. And if ‘everything’ means less pleasant things, such as stalled production and inflation, it starts to gnaw. “No, sorry, we did not see it coming,” Fed Chairman Powell said last week, “it was not in our models.” We have seen many forms of temporary scarcity … Read more

This catch phrase is central in a global debate, but even relevant in the formation of a new government in our own country. Will this lead to a political and financial turnaround that so many have written about in recent years? This call to curb the market, which was leading, among other things, to an … Read more

We have now reached the final rounds of the interest rate competition. The heat is on, it gets exciting, because who will be the first to admit that the inflationary pressure is getting too much for him or her? Who blinks first? In the group matches there were already countries that dropped out and loved … Read more

One of the hardest things to do is to pretend weather conditions are excellent when you have just been caught in a downpour. Not unlike the recently released US inflation rate, the highest in 40 years, that even the most pessimistic economist had not even remotely predicted: 4.2%. It was a pity that the inflation … Read more

It seems simple: the government orders money, the central bank supplies it, keeps the interest at around 0% and you get it transferred. Then a few more mouse clicks and your order is on its way to the store. And they click your order through to the factory. Will that work? Probably if we only … Read more