Financial Markets Newsletter

Summertime Blues

A lot of news happened this week in the macro markets from Argentina’s peso crashing to protests in Hong Kong while additional signals flashed that trade tensions are impeding global growth. More economists are also coming to the opinion that the Fed’s attempt to raise interest rates last year had a much bigger effect than […]

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Currency Wars

The currency wars have been brewing for years as central banks have been racing to the bottom with zero interest rates and expanding balance sheets in an attempt to create perpetual growth machines for their respective countries. The byproduct of these policies have created staggering levels of debt and an ever increase wealth gap as […]

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Double Whammy!

A critical week as the Fed disappointed the markets on Wednesday while the White House brought the tariff hammer down upon China on Thursday. Let’s take a look at how the S&P 500 and the 10Yr Treasury bonds reacted. Below is the S&P 500 Index and the big question is the depth of the correction […]

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SPF 0.25%

Summer trading is here and so is the Fed’s next policy announcement which will be released on Wednesday. Expectations are that the Fed will anoint the markets with a 0.25% rate cut as “insurance” against a rising risk of slowing growth and trade tensions. However, this move is largely symbolic now as the fear of […]

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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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