Over the weekend, I read a weekly newsletter which covers Warren Buffett and Berkshire Hathaway stock (1) They pointed out that Berkshire continues to accumulate shares of OXY ($64) at ever increasing prices. Today, May 16th, 2022 despite the stock market having a flat opening, with oil prices slightly lower, OXY made a new high.…… Continue reading Just a Thought
Month: May 2022
Inflation Peaking?
Despite high levels of inflation recorded early in the week, the markets staged a strong rally on Thursday and Friday, on the wishful thinking that inflation readings may be “topping.” Although many of the market averages are in oversold levels, despite the late week rally, still recorded its 6th losing week with the S&P Index…… Continue reading Inflation Peaking?
Powell Confirmed for Second Fed Term
I hope I am wrong, but I have the feeling that Federal Reserve Chairman Jerome Powell being confirmed today for a second term to head up the Fed for the next four years, is like being appointed Captain of the HMS Titanic on its maiden voyage. Good luck to Chairman Powell as he tries to…… Continue reading Powell Confirmed for Second Fed Term
Canary in the Coal Mine?
Is Elon Musk’s proposed $44 Billion leveraged take over of Twitter at $54.20/share, a 38% premium over its market price last month, a warning sign of a market top? Why is the richest American using mostly borrowed money to take TWTR private? Why is a major American bank lending such large sums of money to…… Continue reading Canary in the Coal Mine?
Blue Monday
May 5th, 2022 Stock and Bond markets are off to a very shaky start this week, with a probable 500 point Dow drop, and the 10 year Treasury yield rising to 3.18%, the highest level since late 2018. Remember yields move inversely with bond prices; as yields go up, bond prices go down. The scary…… Continue reading Blue Monday
Fighting Inflation
May 5, 2022 Yesterday, the Federal Reserve (Fed) announced an expected 1/2 point increase in interest rates, the first of several possible monthly 50 basis point increases, over the coming months. In addition, the Fed will start reducing its $9 Trillion Dollar balance sheet, with $30 Billion/month of sales of Mortgage Backed and Treasury Bonds.…… Continue reading Fighting Inflation