We have seen this movie before … And many times. The United States Treasury 10-year note breaching a 3% yield (peaking last week at 3.248%) after another quarter point bump in the Fed funds rate (to 2.25%) has rattled the market again. “Again” is the operative word. This happens every time that the Fed moves…
Tag: wall Street
“The Fed Could Be Hiking Us into a Recession, … “
“The Fed could be hiking us into a recession, investor Peter Boockvar warns.” This headline appeared Saturday (9/29) on CNBC’s web site. Are You Scared Yet? You probably shouldn’t be. First of all, if you look at the interview, it is hardly a full-blown warning of imminent disaster from Boockvar, though the CNBC header would like…
“If I ever got impeached, I think the market would crash, … ” –Donald J. Trump
For starters this is not a political post (despite the title). This is a factual post. For kortsessions followers this will not be new news, but I think a refresher may be in order. The reasons are two-fold: the media is beginning to chirp about the market being affected by the president’s deepening legal woes…
What could really tank this market?
Although the popular reasons continue to be The Fed raising rates (causing us to dip into recession), inflation (putting more pressure on the Fed to ratchet up rates) and trade wars (today’s favorite flavor based on a White House proposal — trial balloon or misstatement on the part of Secretary Mnuchin — to restrict Chinese…
“There’s something lurking out there … “
The CNBC headline goes on something “… that will upset the market.” So if nothing really is going on to upset the market just plant the idea that there is in your headline. That’ll get their attention. In response I might say that there is always something lurking that might upset stocks. That’s a fact…
Trust Me, inflation and higher interest rates are good for stocks …
Unless we are headed into a hyper-inflationary period such as that we saw in the mid 1970s and early 1980s. This is a nuanced situation. Most people writing about inflation and rates or programming computers that implement trading programs to react to news that might change their trajectory do not get the complexity of what…
A New Positive For The Market And Nobody Cares
Peace Breaks Out On The Korean Peninsula After 65 years of an armistice (signed July 27, 1953) the Korean War looks like it maybe heading to its conclusion with a full peace treaty … that is, of course, if the they and the other parties to the armistice, China and the United States, can come…
‘Take your money and run.’
This is a paraphrase of the prime message from an interview with perma-bear, David Tice, on CNBC’s Trading Nation Thursday April 12. Now this is not a new message from Mr. Tice. It has been his message for most of the past three decades. According to one wag Tice has called at least thirty of the last…
Another Fed Freak-Out
Or, should I say, mini freak-out? After all the Dow Jones Industrials and S&P 500 indices were only down 299 and 35 points respectively (a mere 1.16% and 1.27%). This certainly was not a rout and it was very predictable. This is what you would expect from the market when a newly-minted Fed Chair, Jerome…
“Risk Roars Back”
And the folks at Barron’s and CNBC are delighted. Why? Because it should stimulate readership and viewership of their organizational output … very good for advertising sales. In the financial media nothing sells quite as well as bad news. In the general media the same holds true, as they were all trumpeting the fact that…