April commenced with fresh data from the Bureau of Labor Statistics showing that the CPI (consumer price index) rose 8.5% year over year last month compared to March of 2021, a level that marks the fastest increase since December 1981. Fed officials discussed acting more aggressively to combat rising inflation, even suggesting various policymakers “would Read More
What Happens When Interest Rates Rise?
Interest rates are forefront on investors minds as the pace of rate increases over the last several months is something not seen in decades. Interest rates determine the cost of capital in an economy and subsequently have an outsized impact on the trajectory of economic growth. What does the recent sharp increase in rates mean Read More
From the Trading Desk: What’s Happening in the Market?
To recap my previous post, Fed Chair Jerome Powell announced a 0.25% rate hike last week. The Fed is monitoring the economy and has telegraphed its intention to hike rates as needed to bring down inflation in response to the sharp price increases consumers are seeing in their daily lives. Volatility has picked up in Read More
History Doesn’t Repeat Itself, but It Often Rhymes
This quote famously attributed to Mark Twain resonates when looking at stock market cycles. Historically, the US stock market has exhibited similar patterns and characteristics as it transitioned from an uptrend (bull market) to a downtrend (bear market). What do these patterns look like and where does the data point to now? Most major bear Read More
From the Trading Desk: Historic Russian Market Impacts
Jerome Powell, Federal Reserve Chair, confirmed the central bank’s plan to raise interest rates this month as the U.S. economy remains strong despite the war in Ukraine. Stocks climbed on Wednesday to erase losses from the previous two sessions. Commodities reached multi-year record high levels as investors weigh the effect on supply that economic sanctions Read More