2. Long-term government bond rates fell when they were expected to rise worldwide.
3. Reports of worldwide inflation continued at very low levels in most jurisdictions. In Europe, the inflation rate is now recorded at 0.50%.
4. Central bank policies continue to be expansive. Even though the Federal Reserve is tapering, it is still expanding excess reserves and acquiring assets onto its balance sheet.
5. The federal deficit continues to shrink. It has gone from a run rate of $1.4 trillion at its peak to an annualized run rate of $400 billion, and the number is falling.
6. The growing U.S. energy self-sufficiency is evolving and is resulting in shrinking trade and current-account deficits. We do not import as much oil and energy as we used to. We produce much more. The trends continue in that direction. That means that dollars do not flow abroad; therefore, those dollars do not have to be attracted back to the U.S. by higher interest rates or other investment returns.