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?
Tag: stock market
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?
Monday’s Bounce
The stock market staged a strong rally on Monday, May 23rd, 2022 on the news that JP Morgan bank has increased the amount of interest income it projects it will receive this year because of rising interest rates. Of course, that positive factor may be offset by the increasing level of loan defaults and loan…… Continue reading Monday’s Bounce
China plans to throw 3 Trillion Dollars to Save Economy
As China’s economy implodes because of the debt buildup over the years, which cannot now be sustained, combined with the covid lockdowns in the major cities, can they solve the potential collapse by creating more debt? It is looking like China’s economy has been built on unsustainable debt levels. In addition, the Chinese authorities are…… Continue reading China plans to throw 3 Trillion Dollars to Save Economy
New Lows Ahead?
After two days of market rally based on the hope that inflation forces might be subsiding, Target-TGT- reports disappointing earnings before the market opens, and declines almost 25%. At the same time the Dow drops almost 400 points at the opening for trading. All of sudden market participants wake up to the fact that inflation…… Continue reading New Lows Ahead?
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?
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
A Wall of Worry
Monday, August 9, 2021 The Nasdaq Index, made up of mainly hi growth technology stocks led the markets to a record close on Friday, despite the growing concerns about the spread of the Delta strain of the coronavirus and the growing evidence that inflation is not as “transitory” as the Federal Reserve has been forecasting.…… Continue reading A Wall of Worry