The Russell 2000 just made a three-year round trip but fell slightly short of posting a new high. The economy continues to perform well – a plus – but long rates have diverged with short rates, which cannot be a … Continued
On Wednesday, Powell confirmed that the fed funds rate has peaked and that the next move is lower but did not go far enough to please equity bulls drooling over prospects of a cut in March. It is an irony … Continued
Since last October’s bottom in stocks, trillions in additional wealth have been added. Prices headed north, even as earnings headed south, helping push up multiples. This also makes equity bulls, who are sitting on loads of paper profit, jittery, as … Continued
Having raised the fed funds rate by 525 basis points over 14 months, the Fed is under pressure to stop, but is not willing to commit to that. The culprits are sticky core inflation and financial conditions that are easing. … Continued
As S&P 500 earnings staged massive recovery from post-pandemic lows, buybacks are back in fashion. Thus far in 4Q, the index is already up north of nine percent, pricing in a lot of seasonality optimism. As things stand, the index … Continued
On FOMC day, major equity indices posted fresh highs. Bulls were assured by Chair Powell that the Fed will start tapering but is in no rush to take the interest-rate punch bowl away. Yet another session, yet another high! On … Continued
As the FOMC winds up its two-day meeting today, one cannot help but think of the Fed put that has led investors to take on risk and go up the risk curve, driving one after another metric into uncharted territory. … Continued
Major equity indices are within striking distance of new highs. The bull market has come a long way, sending the ratio of S&P 500 market cap to nominal GDP to near record territory. Unwinding is a matter of when, not … Continued