Economic and Market Consequences of Rising Interest Rates

Economic and Market Consequences of Rising Interest Rates

Danielle DiMartino Booth, Michael Oliver and Ivan Bebek return as guests on this week’s radio program.

Interest rates are rising but why? Is it because a booming economy is boosting demand for capital and that profits will rise dramatically to justify still higher stock prices? But what happens to the government solvency when it has to pay higher rates on its $20 trillion debt? Can stocks remain elevated with surging rates? What would plunging stock prices do to pension funds? Are there reasons for hope toward more sensible economic polices under a new Fed Chairman? What are the dangers of a return to QE resulting in a weaker dollar and rising commodity prices as both Oliver & Macleod predict? What would a return to QE mean for the dollar, gold and commodity markets in general?

Oliver will update us on his latest momentum work on key markets and Ivan Bebek will tell about plans for Auryn Resources this winter in Argentina and overall with major exploration projects in Canada.

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Danielle DiMartino Booth is the founder of Money Strong, LLC, an economic consulting firm.  She began her career in New York at Donaldson, Lufkin & Jenrette and Credit Suisse, where she worked fixed income and the public and private equity markets.  After working as a financial columnist at the Dallas Morning News, DiMartino Booth spent nine years as an adviser to Richard Fisher at the Federal Reserve Bank of Dallas. Ms. DiMartino Booth is also the author of FED UP: An Insider’s Take on Why The Federal Reserve is Bad For America, (Portfolio; 2/14/17) – where she criticizes the Fed for focusing too much on theoretical models and not enough on the actual economic situation in America.  She lives in Dallas with her family.

Ivan Bebek has over 15 years experience in financing, foreign negotiations, and acquisitions in the mineral exploration industry. His understanding of the capital markets and ability to position, structure and finance companies that he has been associated with has been instrumental in their successes. Mr. Bebek formerly was the President. CEO and co-founder of Cayden Resources Inc., which was sold to Agnico Eagle Mining Limited for $205 million in November 2014, a co-founder and a Director of Stratton Resources Inc. and a co-founder of Keegan Resources Inc. (now Asanko Gold).

Michael Oliver entered the financial services industry in 1975 on the Futures side, joining E.F. Hutton’s International Commodity Division, NYC. He studied under David Johnson, head of Hutton’s Commodity Division and Chairman of the COMEX.In the 1980’s Oliver began to develop his own momentum-based method of technical analysis. In 1987 Oliver, along with his futures client accounts (Oliver had trading POA) technically anticipated and captured the Crash. Oliver began to realize that his emergent momentum-structural-based tools should be further developed into a full analytic methodology.

In 1992 he was asked by the Financial VP and head of Wachovia Bank’s Trust Department to provide soft dollar research to Wachovia. Within a year Oliver shifted from brokerage to full-time technical research. MSA has provided its proprietary technical research services to financial and asset management clients continually since 1992. Oliver is the author of The New Libertarianism: Anarcho-Capitalism.

About Jay Taylor