Financial Markets Newsletter

Not Fighting The Fed

The Fed has made its intentions clear and we can expect a reduction in interest rates at the end of this month. The Fed sentiment chart below illustrates how the Fed has flipped from its stance last October when higher interest rates (Hawkish) were going to be the new normal. The stock market put a […]

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G-20 Or Bust

The G-20 conference is in full swing this weekend as the US stock market awaits news on progress with a trade deal with China. As of today, there was some progress released this morning where both sides agreed to dial back the rhetoric and proceed in earnest towards a long-term resolution. Nice but there will […]

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The Fed Bunts…

We all got a big sniff of stimulus this week as the Fed didn’t move rates on Wednesday in their June meeting but let the market know interest rate cuts were likely later this year. Think of it as a halftime pep talk for the stock market – turn on those machines and get out […]

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Pimping Out the Fed

The S&P 500 ended up unchanged on the week as it consolidates before the Fed on Wednesday. The Fed has reversed course over the last year as trade tensions have flipped the Fed into accommodative territory and the market now expects rate cuts. The chart below illustrates the dramatic shift in expectations after Fed Governor […]

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SuperFED!

In the Chart: The December low was marked by a shift in Fed policy which caused a straight shot higher with few pullbacks until a wedge pattern formed in April that gave way to a month long correction in May. The May correction (labeled A-B-C) almost touched the 38.2% retracement level on Monday which coincided […]

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Tariff Lamentations

The mirage of a new trade regime with China has dissipated. Both sides are beating their chests in a show of strength through tariffs and a disregard for unintended consequences. A confident spirit lives within both sides as global stock markets have rebounded from the December lows giving trade negotiators a shot of courage. However, […]

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