Interest Rate

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The Value Trap

By David O'Malley | February 21, 2017

In this short trading week, I will be watching to see if we get any more information on the Federal Reserve’s (Fed) current thinking when they release the January meeting minutes this Wednesday. If U.S. economic data remains strong, I expect the Fed to increase interest rates by 25 basis points at the March meeting. Also of interest this week is the expected release of Berkshire Hathaway’s earnings and Warren Buffett’s annual letter on Saturday, which to me is a must read.

What Investors Can Expect from the Federal Reserve in 2017

By Penn Mutual Asset Management | January 11, 2017

Penn Mutual Asset Management CIO Mark Heppenstall contributed an article to The Hill where he shared his outlook on what investors can expect from the Federal Reserve (Fed) in 2017.

Market Activity to Slow This Week

By David O'Malley | December 19, 2016

Market activity is expected to slow during the final trading days of 2016.

A Tale of Two Tantrums

By Mark Heppenstall | November 17, 2016

U.S. interest rates have been trending higher since July and gathered additional steam following last week’s surprising election results. However, despite the dramatic spike post-election, the increase in rates so far has yet to catch up with the move experienced during the taper tantrum in 2013.

Elevated Duration Risk

By Zhiwei Ren | September 22, 2016

In the most recent issue of The Economist, several articles were written about the rise of superstar corporations. These are companies such as GE, Amazon, Google, Apple, that dominate the… Read More

The Fed’s Dilemma

By David O'Malley | September 19, 2016

On Wednesday around 2:00 p.m. ET, we will find out the Federal Reserve’s (Fed) decision to either keep interest rates unchanged or increase them by 25 basis points. Most market… Read More

Federal Reserve Keeps Rates Steady

By Mark Heppenstall | July 27, 2016

As anticipated, the Federal Open Market Committee (FOMC) kept the federal funds rate steady today with a target range of ¼ to ½ percent.

FOMC Expected to Keep Rates Unchanged

By David O'Malley | July 25, 2016

This week’s Federal Open Market Committee (FOMC) meeting will provide insight into the policy committee’s thinking about the post-Brexit economy.

Weak Employment Number Makes a June Fed Rate Increase Unlikely

By David O'Malley | June 6, 2016

The May employment number caught market participants off guard last week, and the odds for a June rate hike look very slim.

Fed Reduces Expectations for Rate Increases

By David O'Malley | March 21, 2016

As anticipated, the Federal Reserve (Fed) reduced expectations for future interest rate increases at its meeting last week. Risk markets rallied on the news. The Fed’s dovish change in tone puts the market in an interesting dilemma.



Disclosure Statement

This blog post is for informational use only. The views expressed are those of the author, Dave O’Malley, and do not necessarily reflect the views of Penn Mutual Asset Management. This material is not intended to be relied upon as a forecast, research or investment advice, and it is not a recommendation, offer or solicitation to buy or sell any securities or to adopt any investment strategy.

Any statements about financial and company performance of The Penn Mutual Life Insurance Company or its insurance subsidiaries (each, “Client”) made by the author is provided with a written consent from the Client.  Penn Mutual Asset Management is a wholly owned subsidiary of The Penn Mutual Life Insurance Company.

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Opinions and statements of financial market trends that are based on current market conditions constitute judgment of the author and are subject to change without notice.  The information and opinions contained in this material are derived from sources deemed to be reliable but should not be assumed to be accurate or complete.  Statements that reflect projections or expectations of future financial or economic performance of the markets may be considered forward-looking statements.  Actual results may differ significantly.  Any forecasts contained in this material are based on various estimates and assumptions, and there can be no assurance that such estimates or assumptions will prove accurate.

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