Financial Markets Newsletter

Dealer’s Choice

All the cards are on the table and now we will see which players can pull an ace from the hole. The vibes in the financial markets over the last few months have been bad as global growth slows and international trade relations deteriorate. Who is playing with a strong hand? The Fed: Got lucky […]

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The Machine

Welcome to the machine. And the machine makes stocks go higher. Central banks and governments are working together at all costs from letting the U.S. stock market crash and burn. On Friday we got word that a trade deal with China is underway which means the tariff machine will be dialed down and don’t forget […]

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Fed to the Rescue?

Time and again, the Fed has provided stimulus to keep the stock markets afloat for many bumps in the economy over the last 10 years. Will they do it one more time? The REPO activity at the end of September caused the Fed to increase the size of their balance sheet (+$185B) which replicates the […]

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WeSlide

Another variable was thrown into the cesspool of market risk this week as the President is under an impeachment inquiry – not a surprise if you follow the politics. At this point, the markets have so many things weighing on its shoulders that fatigue is beginning to take its toll – the list is too […]

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The Fed REPOrt

A big week of central bank news that may have disappointed the stock market bulls. The Fed cut 25bps this week but tapped the brakes on additional stimulus measures (for now). Let’s take a look at the S&P 500 chart where we are hovering just below all-time highs after a very choppy August. September is […]

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To QE or…..

The European Central Bank (ECB) lasted nine months without their Quantitative Easing program as their stimulus measures are again needed to support the slowing EURO zone (more below). Is the Fed next? We will have additional clarity on Wednesday where the market expects the Fed to cut interest rates 25bps and perhaps provide some forward […]

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Signals?

The debt making machine is in full force as investors bought records amount of new debt issuances this week just as yields have plummeted over the last several months. Good timing for the issuers, bravo. The great enablers at the Fed were all out this week giving speeches before their next meeting on September 18th. […]

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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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