Posts Tagged ‘federal reserve’
Maybe It’s the Other “Flation” We Should Worry About
Is the Fed fighting the last war right now? Should we be more concerned about the other “flation” – Deflation?
Read MoreThe Fed Announcement’s Implications for Banks
It’s about to get interesting… I think we’re about to see some bodies. Yesterday, the Federal Reserve announced another 25bps increase in interest rates.
Read MoreA Hawkish Fed & A Defensive Stock Market
As most investors already know, the FOMC hiked interest rates again last week by another 50bps, establishing the Federal Funds rate at 4.25-4.50%. If you listened to Jerome Powell during the press conference, you know that he minced few words and was decidedly hawkish. CPI data came in better than expected, although inflation over 7%…
Read MoreDon’t Fight the Fed
Ask any market technician about the late, great, Marty Zweig and you’ll hear about a time-tested set of trading rules that are just as relevant today as they were when Marty first put pen to paper. For example, the #1 rule: The trend is your friend, don’t fight the tape. This is at the very…
Read MoreKiss the Fed-Pivot Goodbye
Last week’s labor market report gave the Fed a giant green light to continue its aggressive assault on inflation. So you can just forget the Fed pivot anytime soon. That means tighter conditions and further demand destruction… Contingent to this week’s CPI report, last week’s labor market data implies a more aggressive Fed going forward…
Read MoreThe Rules Have Changed
Earlier in the week, I mentioned a very classic market pattern playing out in the equity indexes. I think it warrants a deeper review. Why? Because 2022 is not 2020, or even 2021, or virtually any other year going back a decade… Any investor still living under the illusion that we’re in the same investment…
Read MoreAre 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…
Read MoreAre You Prepared for Raising Rates?
The broader markets have been struggling amid inflation and interest rate fears. You can see it in the chart below – after peaking in early September, the S&P 500 has been in a downtrend that it’s been struggling to reverse. But that does not mean all areas of the market are seeing selling pressures. On…
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