224 results found
Daily Market Commentary
Hidden within a Bloomberg article published over the July 4th weekend was the following quote alluding to the possibility that Treasury Secretary Scott Bessent could simultaneously replace Jerome Powell as the Fed Chair, while continuing to serve as the Treasury Secretary. The president said Tuesday he has “two or three top choices” to potentially succeed […]
Invest
The bull market is alive and well, even amid widespread talk of the “death of U.S. exceptionalism.” Early 2025 saw a sharp shift in investor sentiment. Concerns over erratic trade policy, soaring debt, and weakening dollar pressure challenged America’s long-standing market dominance. Markets fell sharply in April and May, feeding a narrative of declining “US […]
Newsletter
The S&P 500 and the Nasdaq both set all-time highs this week. This feat seems remarkable given the barrage of negative headlines, geopolitical risks, and a Federal Reserve intent on not cutting rates. However, the bulls remain decisively in control of the market as it closed above the 6100 level amid a backdrop of weakening economic data, dovish undertones from the Federal Reserve, and continued strength in mega-cap tech. Despite some pockets of sector underperformance, key technical indicators suggest bullish momentum remains intact, but with caveats beneath the surface.
Invest
“AI is big business” is a gross understatement. The IEA estimates that “the market capitalization of AI-related firms in the S&P 500 has grown by around USD 12 trillion since 2022.” For perspective, the chart below shows that only the U.S., China, and the European Union (EU) have total stock market caps exceeding $12 trillion. […]
Newsletter
The market continued to trade in a back-and-forth pattern this week as it consolidated recent gains. Negative news headlines from the ongoing Iran-Israel conflict continue to push and pull traders daily. Notably, the market held support at the 20-DMA, keeping the bullish trend intact. However, the market did break below the "rising wedge" pattern, increasing the potential for a further consolidation to work off the current overbought conditions.
Economics
The narrative surrounding the “dollar’s death” as the world’s reserve currency has been on the rise recently. However, this happens whenever the dollar declines relative to other currencies. We previously wrote about the false claims of the “dollar’s death” in 2023 (see here, here, and here). The recent decline in the dollar relative to other currencies is well […]
Daily Market Commentary
One of the most common parallels for AI stocks’ booming performance is the tech bubble of the 1990s. Both periods were and are being driven by transformative secular developments. On the surface, the remarkable growth, market performance, and high valuations of AI stocks resemble dot-com stocks from the years that created the tech bubble. We’ve […]
Economics
Lately, the “deficit narrative” has dominated much of the financial media, particularly those channels that are continual “purveyors of doom.” In this post, we will discuss the “deficit narrative,” the likely outcomes, and why the cure for the deficit may be found in Artificial Intelligence. The “deficit narrative” has dominated the media lately as President […]
Newsletter
The market's bullish trend continued this week, and it is rapidly approaching all-time highs. However, an Israeli strike on Iran early Friday morning sent stocks tumbling at the open, but as of midday, as I am writing this report, most of the initial decline has fully recovered. We noted that a correction or consolidation process is needed to work off some short-term overbought conditions. But, as seen on Friday, any pullback is quickly bought by investors chasing the market in the near term.