1,313 results found
Daily Market Commentary
The Magnificent Seven continue to lead the market higher as they did last year. However, one of the seven stocks is falling woefully behind. Tesla is down 25% this year. Driving Tesla’s share price lower is growing concern that EVs may not be the much-ballyhooed future of automobiles. As evidence, GM and Ford are cutting […]
Daily Market Commentary
The price of New York Community Bank (NYCB) was cut in half last week as it drastically increased its loan loss reserves. As we noted in a recent Commentary, they took this action partly because of the commercial real estate (CRE) loans they bought from the failed Signature Bank. The work-from-home movement and higher interest […]
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In September 2021, I discussed how the markets had set its sights on the S&P 500 index hitting 5000. To wit. “Yes, the rally off the COVID-19 bottom in March 2020 has been extraordinary, but we think there are further gains ahead. Solid economic and corporate profit growth, in conjunction with a still-accommodative Fed, means […]
Daily Market Commentary
Interestingly, the Fed removed the following statement from Wednesday’d FOMC statement: “The U.S. banking system is sound and resilient.” We bring that up because New York Community Bank (NYCB) fell over 40% earlier that day. Therefore, we must ask- are the banking problems from last year resolved, or is the Fed worried? NYCB reported a […]
Daily Market Commentary
“Call it a gold rush” started a Washington Post article, The Economy (Taylor’s Version), detailing the amount of money Taylor Swift’s tour is making for herself and how much economic activity it generates. For starters, the article estimates that Taylor Swift will personally rake in over $4 billion from her Eras Tour. The following statistics […]
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Part One of this series led with a graph from Apollo Global Management implying that we are embarking on an inflation rollercoaster for the next ten years, similar to the experience of 1965 to 1982. Parts One and Two explained the causes and remedies for that prolonged inflation outbreak. The links are below. Part One […]
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Part One of this series highlights how the government’s fixation with full employment and the Fed’s belief in the faulty Phillips Curve model from 1965 to 1982 fueled multiple bouts of inflation. We also touched on that fateful day in 1971 when President Nixon removed the fiscal and monetary shackles, essentially giving the government and […]
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As the stock market hit all-time highs this past week, there remains an interesting disconnect from the more dour economic concerns of the average American. A recent survey by Axios, a left-leaning website that supports the current Administration, addressed this issue. “Poll after poll shows that the country is bummed out by the economy. Voters blame Biden. Nearly four in […]
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Appreciating Apollo’s graph below, comparing recent inflation to multiple bouts of inflation of the late 1960s, 70s, and early 80s is of utmost importance for investors. Sustained levels of high inflation are poor for stock and bond returns. Even more worrying, high inflation is insidious for the financial well-being and morale of the nation’s citizens. […]