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Volatile Market: A New Normal

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World stock market continued it strings of volatile trading sessions recently when 10 Years Treasury Notes hitting 1.5%, a sign that FED is going to increase interest rate in near term due to higher “inflation expectation “post pandemic as economic is going to restore back to Pre-covid 19 level.  <Image credit :GuruFocus.com>       For me, it seems that the yield curve is just returning to normal level / pattern with upward slope and higher rate for long term treasury notes as compared to exceptional “ Inverter Yield Curve “during the pandemic. The short-term rate (1-5 years) remain extremely low and accommodative as mentioned by FED. The 10 Years Treasury rate mainly use to determine the mortgage rate and I think is quite healthy if rate is a bit higher than short-term as to indicate the risk on long term mortgage loan, also to avoid more speculative move in housing market. I am not sure if this increase of 10 Years treasury note will benefit the banking sector in near

Stock Market Looks Like A Casino Now : Have Fun !!

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  GameStop the Market: Big Bets on Stock Make Wall Street Look Like a ‘Casino’ <source:casino.org>     The biggest bets made over the past couple days haven’t been placed in a casino on the Las Vegas Strip. Instead, the action’s taken place on Wall Street, as a group of stock traders on Reddit have aimed at hedge fund traders, who have made high-stakes wagers that businesses like GameStop and AMC Entertainment would stumble . The Stock Market is a Fun Casino <source:ritholtz.com>   The stock market works  as if  people were investing money in companies; some indirect mechanism ties the secondary trading of stock to the allocation of capital.  1   And of course in the limit companies  can  raise money by selling stock. So buying stock is  like  investing money in a company in exchange for partial ownership of its projects, and the amount you should pay for a stock is basically the discounted present value of the company’s cash flows from its business. The mech
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