The decay in global leadership
This report could be about the recent bear market rally, Kanye West’s implosion or UK Prime Minister’s exit after just 44 days in office. But, we would like to divert our readers’ attention to something more fundamentally unsettling. Ex-President Trump will likely be...
The Markets are going to be wrong again
Stocks surged and U.S. Treasury yields fell Friday after Federal Reserve Bank of San Francisco President Mary Daly said future interest rate increases could come in smaller increments to achieve the Fed’s target neutral rate. While the Fed seems set to again lift its...
Hard landing is here as the economy faces new risks
CPI reading of 8.2% for September, barely down from 8.3% in August showed how sticky inflation has become a part of the US economy. Wall Street was clearly not prepared for it with concerns that price pressures are getting entrenched leaving the S&P 500 down 1.6%...
When good news is bad news for the market
Stocks plunged Friday after the latest government data showed a hot U.S. labor market that likely ends any doubt that the Federal Reserve will maintain its aggressive policy of raising interest rates by 75 basis points later this month. Nonfarm payrolls increased...
Brace for impact as layoffs begin
In response to the continued hawkish position of the Fed and their desire to slow down the economy, the first signs of material cracks in the economy started to show as a series of companies began to trim their workforce - JP Morgan to lay off 1000 workers, Compass to...
There will be blood – Fed’s mistakes will cause real pain
Investors fled for the exits on Friday, driving a selloff in both stocks and bonds to cap a brutal week, as the market transitioned quickly from worrying about stubbornly high inflation to a sense of rising alarm over the Federal Reserve's aggressive tightening...
Who Is Going To Get This Right? The Fed Or The Market
The S&P 500 posted its worst weekly performance since mid-June, slumping 4.78% for the five-day session. The losses came on the back of a solid 3.65% gain last week. The selling pressure started on Tuesday after a hotter than anticipated consumer price inflation...
A Pavlovian Response to the Fed
U.S. stocks rallied on Friday and major indexes snapped a three-week losing streak as investors continue to factor in the expectation for higher interest rates just around the corner. All 11 sectors in the S&P 500 closed in the green for the week, with the...
The Job market is fighting the Fed
Hiring slowed sharply in August but remained sturdy as employers added 315,000 jobs despite softer consumer spending gains, rising interest rates and a sputtering economy. The unemployment rate rose from 3.5% to 3.7%. In his speech at an annual symposium in Jackson...