{"id":13736,"date":"2014-08-23T03:46:20","date_gmt":"2014-08-23T03:46:20","guid":{"rendered":"http:\/\/researchandinvestment.com\/?p=781"},"modified":"2014-08-23T03:46:20","modified_gmt":"2014-08-23T03:46:20","slug":"putin-antics-fail-to-impress-markets-2","status":"publish","type":"post","link":"https:\/\/thepatientinvestor.com\/index.php\/2014\/08\/23\/putin-antics-fail-to-impress-markets-2\/","title":{"rendered":"Putin antics fail to impress markets"},"content":{"rendered":"

For all his macho posturing, Vladimir Putin has demonstrated an inability to move financial markets with his antics in Eastern Ukraine. His latest incursion towards Luhansk, with white-painted military trucks bearing aid to the rebel-held city, unchecked by the Red Cross, passed barely noticed. Instead markets are intently focused on nuances from a 68-year old Jewish mum at Jackson Hole, who also happens to chair the Federal Reserve.<\/p>\n

I would have loved to call Janet Yellen a “grandmother”, but son Robert Akerlof — himself a PhD in Economics — does not claim any offspring on his CV<\/a>. The apple doesn’t fall far from the tree. Husband, George Akerlof, is a Nobel prize-winning economist and professor emeritus at University of California, Berkeley.<\/p>\n

The image below highlights the differences between the Fed and the ECB:<\/p>\n

\"Fed<\/p>\n

\n

European unemployment is nearly twice the rate in the U.S.: http:\/\/t.co\/ELXH1YcCcw<\/a><\/p>\n

— Bloomberg News (@BloombergNews) August 22, 2014<\/a><\/p><\/blockquote>\n

The Fed’s more stimulatory approach has paid dividends in terms of economic growth and employment while inflation expectations remain muted. The inflation breakeven rate — 10-year Treasury yield minus the yield on equivalent inflation-indexed securities — continues to range between 2.0% and 2.50%.<\/p>\n

\"Inflation<\/p>\n

The ECB’s more austere approach, on the other hand, has caused a world of pain.<\/p>\n

Market update<\/h3>\n