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October 10th, 2022 A friend just asked me to review her portfolio which has an independent money manager at a major wire house. She is concerned that the account is losing value since last year when a new manager was hired. In reviewing this month’s statement, I see that the account has lost about 20%…… Continue reading Caution

October 11, 2022 This morning the International Monetary Fund, IMF, released a report significantly cutting their growth forecast for next year, and warning “the worst is yet to come.” For those investment advisors and investors who have been riding the past months decline in stock and bond prices, with the expectation that the Federal Reserve’s…… Continue reading Wake Up Call?

Both the Stock and Bond Markets, which had been in deep oversold levels. had strong rallies today to start off October. One has to wonder how much of today’s action was propelled, by the Federal Reserve’s “Emergency” meeting on Friday? Over the years, whenever the markets have been having sharp declines, a group of mysterious…… Continue reading Plunge Protection Team?

Both the Stock Markets and Bond Markets of the world have had another negative week, with American stock markets closing at, or slightly below, the lows reached this past June. Bond markets, which tend to do well when stocks are falling, are however, also seeing a record decline in value, as the Federal Reserve continues…… Continue reading Danger Ahead?

In 1980, George H.W. Bush, before becoming Ronald Reagan’s Vice President, coined the disparaging term, of “Voodoo Economics” to describe Reagan’s “supply side” policies, of big tax cuts. It referred to economic policies perceived by many, as being unrealistic and ill-advised. The Supply Side Economists around Reagan embraced this concept that by cutting taxes you…… Continue reading England Tries Voodoo Economics

September 22, 2022 On Wednesday, Fed Chairman Powell, made it clear that “this time he was really serious,” about fighting inflation, as he lifted interest rates, by 3/4’s of a point. At first, the stock market shrugged the news off as expected. But then later in the day, as his words indicated that interest rates…… Continue reading “Don’t Fight The Fed”

The markets around the world continue to show weakness as concerns grow that the Fed’s Quantitative Tightening (QT), program which is the opposite of their 12 years of Quantitative Easing (QE), will lead to a recession, and a hard stock market landing. Tomorrow, we will get the Fed’s monthly report, combined with a probably 1/2…… Continue reading Financial Storm Ahead?

September 16, 2022 Before the opening of trading this morning, the folks at Federal Express –FDX threw a stink bomb into all the Wall Street happy talk that the bull market would resume shortly, as inflation was “peaking” and the Federal Reserve would pull off a “soft landing” for the economy. FDX’s chairman Raj Subramaniam…… Continue reading Recession Ahead?

Tuesday, Sept 13, 2022 After a four day market rally, investors woke up to economic reality this Tuesday morning when the monthly consumer price index report showed a continuing high level of inflation, led by increasing rents and food costs. These increases offset the lower energy costs of the past month. Investors had been hoping…… Continue reading A Dose of Reality