Why Biden’s 4% buyback tax could boost stock prices and dividends

The Biden administration’s new stock buyback tax will have little impact on the overall stock market. It might even actually help it. I’m referring to the new 1% excise tax on share repurchases that went into effect on Jan. 1. This tax has set off alarm bells in some corners of Wall Street, on the … Read more

Opinion: Opinion: The annual inflation rate was not 7.1% in November; it was 3.7%

The Federal Reserve should declare an immediate cease fire in its war against inflation and hold its benchmark interest rate steady instead of raising the federal funds by a half percentage point to a range of 4.25% to 4.50%, as expected at its meeting that ends Wednesday. With the relatively benign report on the consumer … Read more

10-year yield hits session highs after weakest auction since 2009

10-year Treasury note yields jumped to their highest levels of the session on Monday after an auction of $32 billion in 10-year notes saw the weakest demand, by one measure, since December 2009. The newly auctioned notes were sold with a “tail” of 3.7 basis points compared to the when-issued yield. That’s the largest tail … Read more

Tumbling Markets Imperil Tech, the Dollar, and Private Equity

Text size Japan has had to intervene to support the sliding yen for the first time since 1998, even as it tries to keep its interest rates low. Akio Kon/Bloomberg The world has been hooked on cheap money for years. Now we’re witnessing what withdrawal looks like. Lifting interest rates from nil has produced a … Read more

Fed OKs another massive interest-rate hike — and it’s not about to stop

The Federal Reserve on Wednesday stepped up its aggressive fight against high inflation by agreeing to the third straight super-sized increase in interest rates and signaling more big hikes before the end of the year. Officials said they would raise their benchmark federal-funds by 0.75 percentage point to a range of 3% to 3.25%. They … Read more

Jeffrey Gundlach says bonds are ‘wickedly cheap’ compared to stocks — and offers one way to get a 9% return without much risk

You can forgive Jeffrey Gundlach, a long-suffering Buffalo Bills fan, if he has the NFL on his mind now that the team he supports looks like the Super Bowl favorite. The chief executive of DoubleLine Capital says he recalls an ad for Crown Royal whisky, in which a referee tells drinkers to take a water … Read more

‘Disinflationary wave is building’ even as investors anticipate aggressive Fed rate increase, says this economist

Signs of disinflation have emerged even as investors fear Federal Reserve Chair Powell and his colleagues will keep battling inflation through aggressive rate hikes that have hurt both stocks and bonds, according to a Capital Economics note.  While it appears the Fed may on Wednesday announce that it’s hiking its benchmark rate by three quarters … Read more