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
Divergent Strategies on the Rise?
The Federal Reserve raised interest rates by 75 basis points this week and Fed Chairman Jerome Powell reiterated its intention to get inflation back under control no matter the consequences to short-term economic growth or asset prices. After all, inflation affects 100% of the population while capital market assets affect a much smaller cohort globally. Read More
From the Trading Desk: Are Markets Broken?
Last week, US Federal Reserve Chair Jerome Powell reaffirmed the Fed’s commitment to reducing inflation no matter the short-term cost to the economy. More aggressive interest rake hikes now appear to be on the table and unsurprisingly stocks sold off sharply in response. The S&P 500 Index erased August’s gains and finished the month down Read More
A Bear Market Rally or a New Bull Market In Stocks?
Stock markets rallied sharply in July and have continued to climb in August in response to the cooling of record levels of inflation. Investors expect the Federal Reserve to ease back the frequency and magnitude of interest rate hikes in response, an apparent bullish case for stocks. According to Wednesday’s edition of The Wall Street Read More
From the Trading Desk: A Recession in All but a Name
This month’s CPI reading of 9.1% marked a 40-year high, despite the Fed’s efforts to tame inflation. GDP numbers for Q2 were published and the US economy shrank for a second consecutive quarter. GDP US Chained 2012 Dollars QoQ SAAR (GDP CQOQ Index) 12-months Despite the general rule to identify a recession, the fall of Read More