The Brits will hold a referendum tomorrow to decide whether the U.K. will renew membership in the EU. If the majority votes to leave, then the British government would have to notify the EU of its intention to leave the union and the country would have two years to negotiate the terms of its exit. (Of course, during this period the U.K. could reverse its decision if, for example, the EU offers concessions to the British people’s approval.) Read more about Eyes on the U.K. 06-22-16
Today the Federal Open Market Committee (FOMC) wrapped up its two-day meeting. As expected, the decision makers opted to keep the benchmark federal funds rate unchanged.
In its much scrutinized policy statement, the Fed acknowledged the recent slowdown in hiring activity but stated that economic activity appears to continue to grow—although the data suggests any growth is tepid. It points to firmer household spending and an improving housing sector. Read more about Fed Decision Helps Our Positions 06-15-16
Earlier today via Trade Alert we closed out the iShares 20+ Year Treasury Bond ETF (TLT) August 130 call option.
The latest signals from the Fed suggest that the decision makers would like the economy to cooperate so that they can continue to “normalize” interest rates. Since this upcoming Friday’s jobs report will be the final monthly employment readout before the Federal Open Market Committee convenes again to determine monetary policy, the report seems to carry more significance than usual because it could play a major role in the Fed’s decision. Read more about Taking the Conservative Route 06-01-16