Japan holds over $1 trillion of US Treasury securities, making it the largest sovereign holder by a significant amount. Thus, the possibility has arisen that Japan might use its extensive holdings as leverage in tariff negotiations. Japanese Foreign Minister Katsunobu Kato said Japan has not made a decision on whether to include its holdings as […]
This past week, two lower-cost food and beverage retailers posted earnings, which conveyed the underlying message that consumers are struggling. McDonalds and Starbucks reported significant domestic sales declines for the first quarter. McDonalds saw its US same-store sales fall by 3.6%, driven by a decrease in its “guest count.” This was the worst decline in […]
The headlines below lead some to believe the shelves in our stores will soon be empty. Moreover, reminiscent of 2020, an inflation spike due to fractured supply lines is imminent. Let’s provide context to help make sense of the headlines and determine whether the plunge of Chinese inbound container ships to US ports represents truth […]
According to Bloomberg, Yale University could sell as much as $6 billion of its private equity investments. Such a sale would represent about 15% of its total endowment fund and a third of its private equity holdings. Yale was a frontrunner among endowment funds investing in private equity. Its well-known ex-investment manager, David Swensen, believed […]
The Zweig Breadth Thrust, a rare technical indicator, triggered a bullish signal on Friday. The signal indicates rapid and significant changes in momentum. The calculation is based on the 10-day moving average of the percentage of stocks that were positive on a daily basis. The Zweig Breadth Thrust signal occurs when the moving average rises […]
The Fed removed its handcuffs on banks, allowing them greater flexibility to trade and hold crypto assets. Before Thursday’s action, banks were asked to seek advance approval from the regulators before participating in crypto-related activities. Further, the Fed removed guidance that banks exercise caution with crypto due to its volatility, liquidity, and legal uncertainty. The […]
Despite a growing chorus of pundits claiming the “death of the dollar” is imminent, Treasury Secretary Scott Bessent said the dollar will remain the world’s reserve currency. The following clip from Bloomberg was based on a speech Scott Bessent gave Thursday morning to the IMF and World Bank: More broadly, the Treasury secretary reinforced backing […]
Monday’s Commentary started: On Truth Social, President Trump stated, “Powell’s Termination Can’t Come Fast Enough!” The stock and bond markets fell as investors feared President Trump might try to remove Powell from his role as the Chairman of the Federal Reserve. This isn’t new ground; Trump spoke similar words during his first term. However, with […]
Since the start of the year, the S&P 500 is down over 10% and nearly 20% from its January peak. At the same time, gold is up almost 30%. The stark return differential is excellent news for gold investors, but the clock may be ticking on gold’s outperformance versus stocks. For historical context of prior […]