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
What Assets Perform Best in High Inflation Environments?
Much has been written about inflation in recent months. While some argue inflation is here to stay, others have taken the position that we will resume the long-term trend of deflation due to technological innovation and overindebted economies once supply chain dislocations ease. Inflation tends to be an economic as well as psychological trend and Read More
From the Trading Desk: You Don’t Need Sales to Look Good
To recap my last post, Tesla has in fact become a trillion-dollar company. Earlier this month, CEO Elon Musk polled on Twitter whether he should sell 10% of his stake in the company. After his followers approved, he started selling although the trades were likely part of a preexisting 10b5-1 trading plan. Tesla’s stock declined Read More
From the Trading Desk: A Trillion-dollar Tesla?
October has proven to be a tremendous month for the S&P 500 Index and NASDAQ Composite following September’s sharp losses. Both indices are trading near record levels amid strong corporate earnings and have raised the question, one more time: How much more can stocks continue rising? S&P 500 Index (SPX Index) 5-year monthly chart October, Read More
What is the Value of Anything?
I was reminded of this question earlier in the week when Jamie Dimon, the CEO of JP Morgan Chase, announced that the value of bitcoin is going to zero. Investors take notice when the CEO of the largest bank in the United States makes a prediction concerning the future value of an asset. Bitcoin / Read More