March 22, 2023 Despite the turmoil in the Banking Sector, the Federal Reserve, (Fed) did as widely expected, and raised short term intereest rates another 1/4 point. This is in the Fed’s belief, that raising interest rates, will eventually result in a lowering of inflation, to the target rate of 2% per year. History strongly…… Continue reading Is This Time Different?
Month: March 2023
Are Warning Flags Flying?
Thursday, March 9, 2023 Most people are not paying attention to what is going on in the Banking Sector which is starting to send out warning signals. Major newspapers are reporting that consumer debt is at historic high levels as interest rates continue to increase. Default rates on auto loans are low by historiccal standards,…… Continue reading Are Warning Flags Flying?
Heading to Another 2008?
March 8, 2023 It may be my cautious outlook, and certainly not professional investment advice, but I continue to see signs that the stock markets are heading for a replay of 2008. The implosion of the Chinese property market in 2021 (remember Evergrande?) which is still unresolved. The implosion of the crypto-currency and Bitcoin worlds…… Continue reading Heading to Another 2008?
Banks in Trouble?
March 7th, 2023 Today, Fed Chairman Jerome Powell, thru cold water on the hope that an economic slowdown, would cause the Fed to “pause” or “reverse” its current interest rate tightening cycle. Fighting inflation is still the Fed’s number one priority, and they are no where near achieving their goal of bringing the economy back…… Continue reading Banks in Trouble?
More Inflation?
March 2, 2023 David Einhorn’s Greenlight Capital’s hedge fund, with a 36% return in 2022, says investors should be “Bearish on Stocks, and Bullish on Inflation,” for the coming year. Is anyone listening? With the 10 year U.S. Treasury yield topping 4% reaching a level not seen in several years, and mortgage rates hitting the…… Continue reading More Inflation?