This is a simplistic, but highly useful, Wall Street investment guide that strongly recommends that you adjust your portfolio’s balance among Stocks, Bonds, and Cash in harmony with the Federal Reserve’s (“The Fed’s) monetary policies. This market wisdom was mentioned in Martin Zweig’s book “Winning on Wall Street” published in 1970. Still worth reading today.…… Continue reading “Don’t Fight the Fed”
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A Wake-Up Call?
It only took a few hours for most stock and bond market investors to realize that increasing interest rates, as outlined yesterday by Fed Chairman Powell, would not be good for stock or bond markets. Yesterday’s short covering rally, was based on hope that it would only take a little more adjustment to interest rates…… Continue reading A Wake-Up Call?
Powell to the Rescue?
After several days of speculation, Federal Reserve Chairman Powell raised interest rates 3/4’s of a point, in a determined effort to choke off inflationary forces. Although this shows how determined the members of the “Fed” are in trying to bring inflation back under control, concerns are starting to grow, that this may also produce a…… Continue reading Powell to the Rescue?
Have we Reached Bottom?
Usually, after a panic sell off like the selling we saw on both Friday and Monday, the market could have a substantial snap back rally to scare the short sellers. However, I still see that the usual jump in volatility that usually occurs with temporary bottoms, has not happened yet. Also, I am very concerned…… Continue reading Have we Reached Bottom?
Thinking the “Unthinkable”
As stock market and bond market participants wait for this week’s interest rate decision by the Federal Reserve, the debate continues whether it needs to be 1/4 point or 1/2 point increase, in the Federal Funds Rate, to show the Fed’s determination to fight inflation. That is, until Friday’s Bureau of Labor Statistics release of…… Continue reading Thinking the “Unthinkable”
Record Inflation!
The U.S. Government announced today that inflation rose 8.6% in May; highest reading since 1981. The yield on the two year Treasury Bills surged to 2.9%: (A note to readers) When I started this inflation watch website, I was only planning on posting once, or maybe twice, a week. Now, events may require more frequent…… Continue reading Record Inflation!
In Gold We Trust?
Some readers have asked, in today’s inflationary environment, is gold, something worth owning? No simple answer to that question, but for this observer having a small portion of one’s assets in Gold/Silver, as inflation protection, could make sense. Along the same line, although I don’t fully trust, or understand, the unregulated world of cryptocurrencies, a…… Continue reading In Gold We Trust?
Is Elon Musk Having “Buyer’s Remorse?”
It’s is looking more and more that Elon Musk is having “Buyer’s Remorse” about his impulsive bid to take TWTR private and remake the platform into his own media outlook. As we have suggested in the past, he is now looking for some legal arguments to try to cancel the deal without paying the $1…… Continue reading Is Elon Musk Having “Buyer’s Remorse?”
What’s Causing Inflation?
What is inflation and what is causing it? Inflation is a measure of the rate of rising prices of goods and services, in an economy. It occurs when there are increases in raw materials, production costs, and wages. Inflation also occurs when there is easy money chasing a limited supply of products, and supply side…… Continue reading What’s Causing Inflation?
Is Apple stock stalling out?
Apple Stock AAPL ($147) has been one of the best investments over the past 8 years. It is the major holding of Warren Buffet’s Berkshire Hathaway (BRK.A) and has produced billions of dollars of profits to his portfolio. So, it is of some interest that I saw a report, the other day, that Michael Burry,…… Continue reading Is Apple stock stalling out?