Peak Inflation could signal the beginning of another bull market
July’s CPI (Consumer Price Index) reading of 8.5%, a significant drop from June’s number of 9.1% coupled with surge in consumer confidence injected euphoria into the markets. With first signs of decline in inflation, the Fed must rethink its quantitative tightening...
The Fed wants the economy to slow down but the economy refuses to do so
Stocks finished strong after a surprising jobs report. The U.S. economy added 528,000 jobs in July, the Labor Department reported, more than twice as high as expected, and the unemployment rate ticked down to 3.5%, matching the lowest level since the late 1960s. Wage...
We are in a recession but does Wall Street care?
So is it a recession or not? Gross domestic product fell at a 0.9% annualized rate in the second quarter after a 1.6% decline in the first three months of the year. This means that the US economy shrank for a second straight quarter, which technically means a...
Markets are flipping between gloom and glee
Despite weak results from the tech sector, the S&P 500 Index and Dow Jones Industrial Average posted their biggest weekly gain in a month, while the Nasdaq notched its largest advance since July 8. But, the economy is putting out mixed vibes. One day, an indicator...
The Silver Lining – Dividend Payouts hit New Record
Stocks finished sharply higher on Friday, snapping a five-day losing streak thanks in part to stronger than expected retail sales data and a moderation in inflation expectations. But Friday's rally still was not enough to overcome three days of selling earlier in the...
Predicting the end of the bear market
The Jobs report released on Friday showed that the U.S. economy added a stronger than expected 372,000 jobs in June, and the unemployment rate held steady at a healthy 3.6%, giving the Fed no reason to deviate from its plan for aggressive rate hikes. Investors may...
Up in Smoke – Economic slowdown and reversal of Roe
US economy is slowly but surely showing signs of deterioration in economic growth. Earlier this week, Purchasing Managers’ Index (PMI) came in at 51.2, the weakest level since January. Forward looking indicators are projecting economic contraction in the third...
Bringing a end to the perfect storm
With June now over, we can say that the S&P 500 has suffered its toughest first half since Richard Nixon was in the White House. It was a rout for the history books, with the equity gauge down about 21%. Investors in consumer stocks witnessed a wipeout of $1.8...
Housing Market Cracks
The U.S. housing market is at the beginning stages of the most significant contraction in activity since 2006. It hasn’t shown up in many data series yet, but mortgage applications are pointing to a large decline over summer with home-purchase mortgage applications...