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
Time to Pivot?
Will the Fed pivot or more importantly does it matter? We’ll see… There lived an old farmer who had worked in his fields for many, many years. One day, his horse bolted away. His neighbors dropped in to commiserate with him. “What awful luck,” they tut-tutted sympathetically, to which the farmer only replied, “We’ll see.” Read More
From the Trading Desk: New Bull or Hopeful Bounce?
As mentioned in the last post, volatility across markets appears here to stay. The days of buying and holding an index might be long gone. Shareholders of the popular tech companies will not likely see anywhere near the gains that we saw in the last cycle. The S&P 500 Index reached a new low for Read More