Blog

Summer Rebound

The dog days of summer are coming to a close and many of you may be traveling to squeeze in some vacation time before the cooler Fall weather begins – already the days are getting shorter. And this Fall will be busy for the capital markets as we will see another more read on inflation […]

Read More

Worldwide Inflation

The Fed increased rates 0.75% this week and ditched “forward guidance” as they can no longer talk the market into melting up as inflation runs in the high single-digits for most major economies. The press conference on Wednesday given by Fed Chair Jerome Powell was taken by some to be dovish in that rate increases […]

Read More

Big Week Coming

There is a lot on the calendar next week as corporate earnings from the major tech giants will be released, notable economic data (durable goods/PCE) and we have a Fed meeting on Wednesday. The inflation outlook has gone unabated and we know the Fed will raise by 75bps on Wednesday but will their forward guidance […]

Read More

Inflation Nation

Inflation numbers reported this week came in very high as consumer prices rose 9.1% and producer prices are up 11.3% compared to last year. Inflation remains persistent and central banks are beginning to get more aggressive as the Bank of Canada raised 1% this week and the bond market is trading like the Fed will […]

Read More

Bears on a Break

Bears on Vacation

The downtrend has been on hiatus for the past three weeks as a counter-trend move edges higher. The better than expected jobs report for June released on Friday will give the Fed clearance to raise another 75bps later this month (27th). The good jobs report is contrary to most economic data which shows a weakening […]

Read More

Kinked

Everything is bent right now. The supply chain is still clogged and the few companies that reported this week are predicting the supply chain will be challenging through 2023. Earnings reports will begin en masse after the July 4th holiday but the early color from CEOs is that economic activity dropped off towards the end […]

Read More

Higher Interest Rates

The Rate Increases Begin

Central banks are beginning to play catch-up. The Fed increased the Fed Funds Rate on Wednesday by 75bps to a range of 1.5% to 1.75%. The hike was more than they projected at their last meeting and they are guiding to a year-end rate of over 3%. None of this was a surprise but foreign […]

Read More

The Central Bank Margin Call

The stock markets are at a crossroad and the tepid price action this week shows the Fed meeting (June 15th) and quantitative tightening are giving buyers pause. Is the May 12th low the start of a summer rally or is this another corrective bounce in the nascent stages of a bear market? Quantitative tightening does […]

Read More

New Lows for 2022

The bear market of 2022 made new lows on the year this week as the market re-prices to quantitative tightening where market multiples contract and growth looks challenged. The effects of inflation are also showing up in profit margins of retailers as they have been unable to pass-through cost increases which ultimately may affect sales […]

Read More

Six Weeks and Counting

The stock markets have now closed lower for the sixth Friday in a row, however, there was a reprieve on Friday which gives a glimmer of hope for a good open on Monday. Plus, next Friday is monthly options expiration (OPEX) for May and many times these weeks close out on a positive note as […]

Read More