Tuesday, May 31, 2016

Bonddad Wednesday Linkfest (Energy Sector and Yield Curve)

World oil supply

Energy ETF Daily

Fracking ETF Daily

Oil and Gas Exploration ETF Daily

Oil and Gas Services ETF Daily

The FOMC is tightening monetary policy because Fed officials believe that the US economy is showing more signs of sustainable growth with inflation rising back near their 2% target. Yet the yield curve is warning that the Fed’s moves could slow the US economy and halt the desired upturn in the inflation rate. Another possibility is that while the US economy might be strong enough to tolerate the normalization of US monetary policy, the global economy is much more vulnerable to Fed tightening moves.