Financial Markets Newsletter

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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Dear 1999…

Several IPOs have been launched in the last few weeks at nosebleed valuations fueled by the euphoria over the perception that the Perma-Fed has our back. The latest IPO launched on Thursday was a cloud based video conferencing company named Zoom that was 20x oversubscribed at 48x revenue (more detail below). There is no better […]

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