Another options expiration Friday that pulled prices higher into the weekly close. Lots going on for summer trading with Turkey’s currency crashing and U.S. stocks trying to breakout to new all-time highs. Technology has been the laggard so that throws some caution into the wind as its benchmark index (NASDAQ) trended down to close the […]
Tag: “Dividends”
Turkey MELTdown
I like to talk about macro risk as I think currencies, central bank policies and interest rates are the three legs of the risk stool that matter as central banks attempt to unwind their ultra-loose monetary policy instituted over the last decade. The “great unwind” is happening slowly but not without tremors like we saw […]
Stocks vs Bonds Part II
The stock market has continued to oscillate this year round the same price from December 31st, 2017. I have highlighted this price in the chart below with a magenta line: We bounced off this level in late June and are now back to resistance at the March and mid-June highs where the market will again […]
Stocks vs Bonds
The sentiment on Wall Street has started to sour as trade tensions weigh on the market and the uncertainty it may breed among corporate America. The tariffs against China went into effect on Friday and who knows what we will get in response over the weekend or early next week. It is only on $34B […]
High and Nigh
Sentiment in the stock market is swinging to the dark side as trade tensions are blamed for fowling up a “global synchronized recovery”. But is that type of stock market natural? Should all markets across the globe go up at the same time for years on end? Doesn’t that mean there is no diversity when […]
DOWn
A very choppy market this week with the DOW Jones Index leading the way lower while the Russell 2000 and NASDAQ made new all-time highs. The broader indices are in a divergent state which brings confusion to the overall health of the stock market. In my last issue, things looked promising but with the DOW […]
Off To Never Never Land?
It was a busy news week with International Trade and North Korea but the equity and debt markets stayed rangebound with volatility infecting the currency and commodities markets. Central banks (US & Euro Zone) made announcements that they were going to withdraw their purchasing of bonds and a promise to raise interest rates very gently […]
Waxing the Brazilian Economy
The U.S. stock markets continued to move higher as we move past the Q1 correction of 2018. However, there was a hiccup on Thursday as the Brazilian stock market dropped 8% in one day! Why? As U.S interest rates move higher there is a butterfly affect on emerging economies that link their currencies to the […]
Ciao Baby!
A good close on Friday for the stock market after a tester on Tuesday that was caused by a dramatic rise in Italian interest rates. The rise was caused by a change in the leadership of the Italian government where the new leadership is skeptical of continued participation in the Euro zone experiment that has […]
Sputtering to the Upside
The stock market lost its mojo this week as the 10Yr Treasury bond yield made new multi-year highs which gave the stock market pause. The Fed is withdrawing its liquidity and raising interest rates which will normalize the interest rate complex – something were have not seen since before the financial crisis. Let’s take a […]