The Stock Market's Latest Bungee Jump
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1 min read
The S&P 500 fell 2.9% last week. Today, it rallied 2.6% to 3678.43, back above the June 16 low of 3666. Why did it do so…
Is Something About To Break?
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1 min read
The 2-year/10-year Treasury yield curve has been inverted in recent weeks. The yield curve has a history of inverting during Fed monetary tightening cycles when investors start to believe…
Opera & The Fed
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1 min read
They say that "the opera ain't over 'til the fat lady sings." Similarly, the current bear market ain't over until Fed Chair Jerome Powell pivots yet again. Since the late…
Oh No: The Fed Is Making Another Big Mistake!
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2 min read
Are Fed officials making another big mistake? They were behind the inflation curve during 2020 and the first half of 2021 because they prioritized lowering the unemployment rate relative to…
Another Awful Risk-Off Week
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The bad news for the stock market this past week actually started on September 16 in the morning after FedEx delivered a terrible preannouncement about the current quarter. The package…
TINA-TAR: There Is No Alternative To A Recession?
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2 min read
The financial markets seem to have concluded that Fed Chair Jerome Powell has decided to go Volcker on us. During 1979-1981, then-Fed Chair Paul Volcker let interest rates soar to…
Fed Stays On Tightening Course
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2 min read
The Fed lifted the federal funds rate range by 75bps to 3.00%-3.25%. Stocks sold off as Fed Chair Jerome Powell reiterated during his presser today the main…
Housing Already Hard Hit By Fed Tightening
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1 min read
Fed officials have been saying that they are aiming to raise the federal funds rate from an accommodative level to a restrictive one to bring inflation down. In their latest…
Major Housing Crash?
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Billionaire real estate investor Barry Sternlicht said he believes the economy is "braking hard" and that the continuation of rate hikes is likely to cause a "major crash" in housing.…
Inflation Shocks The Markets
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August's CPI report shocked the financial markets. It was widely expected to confirm that inflation peaked around June based on the drop in gasoline prices during July and August and…
