‘Tis the Season – Earnings Season

This week marks the kickoff to earnings season – that magical time of the year when a large number of public companies release their quarterly earnings reports. This season in particular is going to be a nail-biter as we’ll learn what the impact is of rising inflation, rising interest rates, and a strong dollar on…

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The Rules of the Investing Game Have Been Replaced

I spent last week with family, vacationing at a Minnesota lake my parents first took me to in the sixth grade. I immediately fell in love with the fishing and the beautiful outdoors.  I would go there five more times with my parents, and once my career settled in, I started visiting again. And now…

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Is a Bear Market Rally on the Horizon?

On Wednesday, the Federal Reserve raised its short-term interest rate by three-quarters of a percentage point. It’s the largest hike since 1994.  Federal Reserve Chair Jerome Powell and other board members seem determined to reach their 2% inflation target and are concerned about falling behind in their fight against inflation. Perhaps Captain Obvious needs to…

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Bear Markets Are Nothing to Fear

This year’s stock market has been unlike many have seen in their lifetimes.  Dramatic declines have been followed by powerful rallies… but at the end of the day, the net trend of the market has been lower.     At its recent low, the S&P 500 is down 18% from the beginning of the year.    This has…

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To Survive This Market You Need to Stack Your Returns

No question about it, this has been a challenging year for investors.   Most asset classes continue to post negative returns.  Between April and May, investors saw the S&P 500 post seven consecutive weekly declines before staging a rally last week.    Noticeably missing is the customary positive returns that bonds often provide during periods of stock…

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Watch Out for Bear Traps

I’ve been around long enough to have navigated through my share of Bear Markets. I was first rudely introduced to the Bear during the infamous Tech-Wreck.  And I can tell you from personal experience, that it was quite a learning experience – an expensive one at that. But maybe those are the best lessons… There…

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Are Stocks Ready To Bounce?

We’ve had our eye on the 3800 level in the S&P 500 as an area of logical support. Assuming the index finds support at 3800, it sets up the possibility for a bounce-back up to the 4200 level before running into any serious overhead resistance. At the end of last Friday’s trading session, the index…

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Are You Recession-Ready?

Are we headed for a recession? The growing evidence that suggests the answer to this question is, unfortunately, yes.    U.S. GDP fell at a 1.4% annual rate in the first quarter – another quarter of negative growth would officially mark a recession. Those who think a recession can be avoided are of the groupthink that…

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We Are Facing a Period of Incredible Change

As we’ve outlined previously, we’re in a period of incredible change.   Disinflation has been replaced with inflation. Interest rates are now rising, ceasing a 40-year trend in falling rates. The Fed is now removing liquidity from the economy which could push us over the edge into a recession.  These shifts are significant and will continue…

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No Banks, No Bull

Regardless of daily headlines about the current direction of equity markets, what the Fed is thinking, or what Elon is doing, there are a few tried and true rules that remain pretty consistent. And one of those rules is that without banks, there are no bull markets.  That doesn’t mean banks have to be the…

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