We are in a bear market – Will the Fed get us out of it?
Very few Fed meetings have been as important as one on Wednesday this week. After Fed Chair Jay Powell’s prepared comments, the perfect question from the CNBC reporter during the Q&A session that turned the markets around was “Will there be a 75 basis point...
Climbing the wall of worry – The good news and the bad news
The bad news - stocks closed out their worst month in years, as investors battled a host of headwinds, including monetary tightening from the Federal Reserve, rising interest rates, worsening inflation, COVID lockdowns in China and the ongoing war in Ukraine. The...
Being cautious now is being wise
The Dow Jones average suffered its worst beating since October 2020 on Friday, capping a fourth straight weekly decline on the news that the Federal Reserve will raise interest rates by at least a half point at its meeting next month. The Fed's hawkish signaling, with...
Getting used to the pain of high inflation
Stocks meandered lower this week deepening losses for all three of the market’s benchmark indexes. The moves came as investors focused on inflation with Treasury yields climbing higher, and back-to-back inflation reports showed prices posting record advances. The main...
Remaining happy in our own little world
Earlier this week, Vladimir Putin’s forces attacked a train station in the east of Ukraine filled with people trying to flee the conflict. At least 50 of them were killed in the assault on Kramatorsk train station, reportedly with the use of cluster munitions. Such...
Figure this out correctly and you have a job waiting for you at the Federal Reserve
Last year was the most profitable for American corporations since 1950. Profits surged 35%, driven by strong household demand and the passing of price hikes on to consumers. While American workers are getting pay bumps, consumer prices are rising more than average...
The war has muddled the markets
All three major stock market averages notched their second straight winning week. The stock market's rebound has come even as the war in Ukraine continues with little sign of being resolved shortly and with interest rates shooting higher as the Federal Reserve stays...
Playing both sides is a dangerous game
Chinese leader Xi Jinping assured U.S. President Joe Biden on Friday that he didn’t want war in Ukraine, but that he doesn’t approve of sanctions, either. During the highly anticipated call, Biden warned Xi of “implications and consequences”, should China move to...
The end of easy investing
As the war rages on, Russia is at imminent risk of defaulting on its debts as western economic sanctions choke off its access to dollars and other global currencies to pay lenders, a move that would have devastating economic ripple effects. Inside Russia, a default...