146 results found
Newsletter
Last week, we suggested we could see a further correction this week, given some of the weaknesses that had been accruing. Such was the case until Wednesday's FOMC meeting announcement. While the meeting was largely as expected, with no real change to outlook, the outcome was seen as primarily "dovish" as Powell reaffirmed the Fed was still on track to cut rates three times this year.
Daily Market Commentary
The Bank of Japan (BOJ) has finally ended its eight-year run of negative interest rates. On Tuesday morning, the BOJ boosted their overnight rate from -.10% to a range of 0% to 0.10%. Furthermore, the BOJ discontinued its Yield Curve Control (YCC) operations and stopped purchasing equity and corporate bond ETFs and REITs. However, their […]
Daily Market Commentary
Microstrategy (MSTR) provides its customers with business intelligence, mobile software, and cloud-based services. Despite losing money and zero growth in revenues over the last ten years, investors can’t seem to buy enough of MicroStrategy. The rationale is not based on prospects for their core technology businesses but on their massive accumulation of Bitcoin since 2020. […]
Daily Market Commentary
Over the last few months, the downward inflation trend has slowed appreciably. Such leads some to conclude that inflation is sticky and likely to stay around current levels instead of returning to the Fed’s 2% target. As we have noted on numerous occasions, we think inflation will continue to decline over time. The pandemic-related damage […]
Invest
Over the last few years, digital currencies and gold have become decent barometers of speculative investor appetite. Such isn’t surprising given the evolution of the market into a “casino” following the pandemic, where retail traders have increased their speculative appetites. “Such is unsurprising, given that retail investors often fall victim to the psychological behavior of […]
Daily Market Commentary
Gold and Bitcoin have been among some of the best-performing assets recently, yet despite their outperformance, the companies that mine for gold and bitcoin lag well behind their respective products. The lower two graphs show the price ratio of gold versus gold miners and bitcoin versus bitcoin miners. Over the last two years, gold has […]
Daily Market Commentary
The Fed is doing QT and keeping interest rates at 15+ year highs. Mortgage rates are 7%, credit cards are around 20%, and auto loans are between 7% and 10%. As the graph below on the right shows, consumer loan growth, excluding the pandemic, has fallen to levels last seen over ten years ago. Loan […]
Daily Market Commentary
From Monday’s close to its low point on Tuesday, Bitcoin declined by over 13%. While a 13% decline in one day may seem enormous for almost any asset class, it’s not that out of the ordinary for Bitcoin traders and investors. As we graph below, Bitcoin has fallen by 13% or more intraday 59 times […]
Daily Market Commentary
“Mooning“- When the value of an asset skyrockets, exceeding investors’ expectations. The phrase mooning, often used in crypto investor circles, is equally appropriate to describe Nvidia’s recent price action. The Bloomberg graph below shows that Nvidia’s market cap just eclipsed $2 trillion and surpassed Saudi Arabian oil giant Aramco. Consider that a little more than […]