1,313 results found
Daily Market Commentary
In June, Apple is expected to announce its progress on AI development, including Project ACDC, which stands for Apple Chips in Data Center. In a partnership with chip maker Taiwan Semiconductors, Apple hopes to make ACDC a competitor in what some are calling the AI arms race. Accordingly, ACDC will face tough competition from companies […]
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The latest FOMC meeting caused a stock rally as Jerome Powell turned more “dovish” than expected. While Powell did note that progress on inflation has been lackluster, the announcement of the reversal of “Quantitative Tightening” (QT) excited the bulls. Beginning in June, the Committee will slow the pace of decline of its securities holdings by reducing the monthly […]
Daily Market Commentary
As was widely expected, the Fed left interest rates unchanged. Jerome Powell alluded that it’s much more likely the next Fed move will be rate cuts, not an increase in interest rates. Given the November elections and the internal pressure on the Fed to remain independent, it now seems likely that barring a sharp upturn […]
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“Increased borrowing must be matched by increased ability to repay. Otherwise, we aren’t expanding the economy – we’re merely puffing it up.” – Henry Alexander of Morgan Guaranty Trust The original Potemkin Village dates to the late 1700s. At that time, Russian Governor Grigory Aleksandrovich Potemkin constructed facades to hide the poor condition of his […]
Daily Market Commentary
In our article Is Toyota The Next Tesla, we discuss recent trends in the automobile industry. In particular, EV sales growth has been declining as hybrid vehicles become more popular, and concerns specific to EVs are growing. With more competitors in the EV market and new hybrid models hitting the market, Tesla’s market share of […]
Daily Market Commentary
From a macroeconomic perspective, Friday’s bank earnings reports provide two important pieces of information. As we detail below, their profit margins are shrinking, and their economic outlook remains favorable. JPM, C, and WFC reported paying depositors higher interest rates to retain their accounts. The consequence is a compression of their net interest income (NII), which […]
Daily Market Commentary
With the latest round of inflation data in hand, it appears the Fed has two paths to consider. Nick Timiraos of the WSJ lays out the “bumpy” or “stuck” inflation scenarios the Fed faces in his latest article, Fed Rate Cuts Are Now A Matter Of If, Not Just When. Given Nick’s unique access to […]
Daily Market Commentary
Jurrien Timmer, Director of Global Macro at Fidelity, asks- “What time is it in the cycle? Now that we are 17 months into a bull market cycle, it’s worth asking how much life there is left. How long can this broadening bull continue?” To help assess how much time may be left, Jurrien shares a […]
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Having risen by about 40% since last October, Gold is on a moonshot. Many investment professionals consider gold prices to be a macro barometer, measuring the level of anxiety in the economy, inflation, currency, and geopolitics. Therefore, we must investigate what is and isn’t driving the price of gold higher. The Divorce Between Gold and […]