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What Investors Need To Know About Record-Low U.S. Treasury Yields
Wednesday, July 6, 2016 - 10:11am | 345Yield on the benchmark U.S. 10-year government bonds fell to its lowest level in history in the aftermath of the Brexit vote this week. According to Mohamed El-Erian, there are three things investors need to know about the unprecedented low-yield environment. 3 Little Things 1. Falling U.S. yields...
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Reactions To The Fed's Decision Not To Increase Rates: Like A Child Trying To Ride A Bike?
Wednesday, June 15, 2016 - 2:23pm | 496The Federal Open Market Committee on Wednesday left interest rates at 0.5 percent. After trimming its growth outlook for 2016 and 2017, the Committee suggested it still has plans for two rate hikes this year, citing expectations of a recuperation in the U.S. jobs market. Following the Fed...
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Fed Says It May Hike Rates In June, But Will It Actually Follow Through?
Wednesday, May 18, 2016 - 2:11pm | 356U.S. equity markets were highly volatile Wednesday afternoon after the Federal Reserve released the minutes from its April policy meeting. The Fed said it will likely hike interest rates in June should economic data points continue to remain strong. "Most participants judged that if...
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Bill Gross, Mohamed El-Erian: 2016 Fed Rate Hike Still Likely
Monday, May 9, 2016 - 10:16am | 323The Labor Department reported the weakest U.S. payrolls number in seven months in April, but some experts believe that a softening labor market may not be enough to deter the Federal Reserve from raising interest rates. Bill Gross, who runs the Janus Global Unconstrained Bond Fund, still believes a...
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El-Erian On Interest Rate Hikes: One Is 'Certain,' Two Is A 'Maybe'
Friday, May 6, 2016 - 12:51pm | 285Allianz's chief economic adviser was a guest on "Bloomberg Markets" to discuss the likelihood of one or more Fed rate hikes this year. According to data collected by Bloomberg, there is a 47 percent probability of a Fed rate hike in the December meeting. At the same time,...
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Is The Bank Of Japan Losing Credibility? Mohamed El-Erian Thinks So
Thursday, April 28, 2016 - 4:10pm | 276The Bank of Japan kept its interest rates unchanged in a surprise move, as market participants were widely expecting the central bank to introduce further stimulus measures. Following the decision to stand pat, the question investors are now asking is if the Bank of Japan has lost its...
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Mohamed El-Erian: 3 Things You Need To Know Ahead Of Wednesday's Fed Meeting
Tuesday, April 26, 2016 - 8:51am | 223Mohamed El-Erian, Allianz's chief economic adviser, penned an article on Bloomberg in which he discussed three topics investors and traders should be aware of heading into Wednesday's Federal Reserve meeting. First, Fed officials are "likely to set the stage" for a future interest rate hike...
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Jobless Claims Reach 42-Year Low, But What Does It Mean?
Thursday, April 14, 2016 - 12:35pm | 300U.S. jobless claims fell by 13,000 to 253,000 last week to their lowest level since November 1973. The surprise drop is certainly good news for a U.S. economy that investors have been concerned is softening in the face of international weakness. The S&P 500 has reacted somewhat positively...
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Yellen Says Fed Should Proceed Cautiously In Adjusting Policy
Tuesday, March 29, 2016 - 2:05pm | 570Federal Reserve Chairman Janet Yellen said the central bank of the world's largest economy should exercise caution in proceeding with the monetary policy. "In particular, developments abroad imply that meeting our objectives for employment and inflation will likely require a somewhat lower path for...
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El-Erian: S&P Has 10% Downside, 'Roller Coaster' Coming
Thursday, March 24, 2016 - 12:39pm | 429Allianz Chief Economic Adviser Mohamed El-Erian appeared on CNBC and said that a range-bound market could soon see more dramatic action, with potential for 10 percent downside. "Don't be surprised if you see a 5 to 10 percent move the other way, because that's what we've been...
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El-Erian: Chinese Concerns 'Legitimate,' Market Reaction 'Excessive'
Thursday, February 11, 2016 - 2:11pm | 284The primary source of market fears that have driven the S&P 500 down 10.9 percent so far in 2016 is China’s weakening economy. In a new report, Goldman Sachs analyst Allison Nathan looked at how China fears have impacted global financial markets and whether those fears are excessive....
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Jobs Report: Good News For Wages, But Jobs Added Might 'Exacerbate' Fed Fears
Friday, February 5, 2016 - 9:39am | 303The U.S. economy added 151,000 nonfarm jobs in January, according to data from the Bureau of Labor Statistics released Friday. The unemployment rate stayed at 4.9 percent, down 0.8 percent. Sectors with the largest increases in employment were retail (58,000 jobs added), healthcare (37,000 jobs...
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For Auld Lang Syne: What You Missed At Benzinga In 2015
Thursday, December 31, 2015 - 10:18am | 761New York City has all the glitz and glamor, but Detroit has The D Drop on New Year's Eve. Okay, maybe it's not quite as impressive as the Time Square Ball, but it's certainly a nice view from our new office. As we close out 2015 and head into 2016, here's a look back on how our...
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El-Erian: High Yield Drama Tells Us 3 Things
Thursday, December 17, 2015 - 8:09am | 469The decline in the high-yield bond market has many investors concerned. So far this week, high-yield bonds have shown a bit more stability. Mohamed El-Erian has identified three lessons to be learned from the decline. The Federal Reserve finally deemed the U.S. economy stable enough to raise...
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El-Erian: Rate Hike Part Of 'Loosest Tightening' In Modern History
Wednesday, December 16, 2015 - 3:08pm | 240Amid market reaction to the FOMC's decision to raise interest rates, Mohamed El-Erian said the announcement is really about one thing. "The Fed is going out of its way to signal a gradual policy approach," El-Erian said in an email to Benzinga. "It is looking to reassure...