— The narrative exists that we are not out of the woods yet on our banking problems. — That seemed to be top of mind for investors selling stocks on the heels of today’s 1/4 point bump in the Fed funds rate. — In this skittish environment do nothing with rates — my sentiment exactly…
Tag: inflation
A crummy week in the market: Impending disaster or opportunity knocking
— Preamble — The Fed finally broke something — Prudence would argue for a less hawkish stance on the part of the Fed — We’ve been this way before … scared/panicky, but not it is the end of the world — So what? Now what?…
Inflation / Recession Obsession Win’s the Day!
— “Where Is GDP Headed? Don’t Ask an Economist!” — Recent economist’s predictions on PCE inflation + .5%. It came in at +.6% — A 1/10% miss on economist’s forecast creates negative media feeding frenzy. — Feeding the Inflation/Recession Obsession, starving perspective “Where is GDP heading? Don’t ask an economist.” With all due deference to my economist friends,…
Bear Market Rally or Next Leg In Secular Bull?
–The market won’t bottom until we are in the depths of a recession–Wrong! — Recent market action on the upside has brought the ‘boo birds’ out in force. — Good news … bring it! Sentiment continues to stink –– Forget ‘hard landing’ or ‘soft landing’, ‘touch and go’ may be closest description (if we land at all) and, as usual, the…
Perspective: The Key to The Market Vault!
— Perspective is the number one biggest shortcoming in the coverage of financial and market news. — I examine perspectives on inflation, rates and recessions. — Lack of perspective stems from two causes: The lack of (or willingness to dig for) historical comparisons or the omission of known facts that might soften the fearful impact of a headline….
Good news is bad news and bad news is good in today’s upside down market
Pundit #1: This market is headed for a disaster of biblical proportions. Investor: What do you mean, “biblical”? Pundit #2: What he means is Old Testament, Mr. Investor, real wrath of God type stuff. Pundit #1: Exactly. Pundit #2: Fire and brimstone coming down from the skies! Rivers and seas boiling! Pundit #3: Forty years of darkness! Earthquakes, volcanoes…
If bull markets are “born on pessimism,” where are we now?
— Investor sentiment evidence would argue these most recent contractions are for real! — Why investor perceptions differ greatly from reality — lack of perspective and media more interested in getting their attention than an unemotional presentation fo the facts. — Most of the market away from the large cap/tech heavy S&P 500 looks very attractive. — “Bull…
What has this market so spooked?
— Simple Answer: Negative headlines shoveled to investors without perspective — Case in point: the August CPI report — A few deep breaths and a little market history from our last major brush with high inflation and interest rates (the 1970s and 1980s) will put your mind at ease. Negative Headlines without perspective Here is the headline that crushed…
Friday, another day in the clueless market: What were you expecting Powell to say?
— It was a bit surprising to see the market rally into the Fed confab in Jackson Hole — Powell’s speech contained nothing that had not been said before and the “pain” that he is referring to is already being felt in certain inflated sectors. — Is a two percent long-rage inflation goal realistic /…
Are The Sellers Exhausted?
— When has being a seller into a well-anticipated event with negative implications for the market ever made any sense? — We have had 42 days full of hand-wringing and negative media to contemplate the July 27 Fed meeting … a for me the market has priced this in. — After all the higher rates, inflation, recession talk and extremely…