Are You Prepared For Negative Interest Rates?

By:Tim Begany of Street Authority

Last Tuesday, all eyes were on Federal Reserve Chief Janet Yellen. In prepared testimony, she offered a few hints that interest rate increases may begin this summer.

While the crowd is thinking about rate hikes, few are thinking about U.S. interest rates heading lower, or possibly even turning negative.

The idea may seem absurd, but is it? Continue reading "Are You Prepared For Negative Interest Rates?"

4 Reasons Oil Could Drop Further

 

Right around the time analysts gave up trying to predict the bottom for oil prices, the all-important commodity mounted a strong comeback.

In fact, oil's recent reversal is leading to predictions that the commodity has finally bottomed and is poised for a "V-shaped recovery," which means it could rise so fast that its price chart forms the letter V.

What's more, many asset managers have started to say it's safe to go back into oil stocks and, in some cases, are forecasting such stocks will be 2015's best investments.

Those are bold claims, and they could be right. But I doubt it.

Simply put, the fundamentals behind the bear market in oil haven't changed much: there are still too many factors that could weigh on oil prices in coming months. Indeed, there are at least four reasons why it's probably far too soon to call a bottom in oil and why prices could still set new lows before heading consistently higher. Continue reading "4 Reasons Oil Could Drop Further"