In my previous post, we discussed the Federal Reserve being under pressure to pause raising interest rates in March after the collapse of Silicon Valley Bank (SIVB) and Signature Bank (SBNY) had investors questioning the health of the banking sector. Despite the crisis, the Fed raised rates by 25 basis points to 4.75%-5% pushing borrowing Read More
From the Trading Desk: Peeling Off the Interest Rate Band-Aid
Federal Reserve Chair Jerome Powell began his Semiannual Monetary Policy Report to Congress on March 7th by acknowledging the hardship and impact high inflation has on the U.S. economy. He recognized the importance of price stability, suggesting without it, a sustained period of labor market conditions that would benefit all cannot be achieved. He continued by Read More
A Disciplined Approach to Getting Back in The Market
Stock markets are off to a strong start in 2023 following a dismal performance in 2022. Notwithstanding sharply higher interest rates and fears of a forthcoming recession, the bulls, at least for now, are in control. There are several arguments to be made for being bullish or bearish in this environment. The bullish argument relies Read More
From the Trading Desk: Intermittent Hope
The December CPI report came in at 6.5%, with inflation having declined from 7.1% in November. Lower inflation expectations have boosted investor sentiment, causing stocks to rally in the New Year. This week, however, the S&P 500 Index has retreated and is trading under its long-term moving average, a delineator of trend. History has taught Read More
From the Trading Desk: New Year, New Decade?
With just under two weeks left in 2022, investors are evaluating where they stand and making decisions for how to approach the new year. 2022 marked the beginning of tightening monetary policy by the Federal Reserve to tame elevated inflation. After maintaining near zero interest rates to boost the economy during the Covid pandemic, the Read More