How Much Is Enough?
The current market is being driven by the headlines. More specifically, the stock market is moving to and fro based on any/all headlines about the state of Putin’s unprovoked, unconscionable, indefensible, and completely inhumane invasion of Ukraine. Yet, as we discussed last week, there is more going on underneath the surface here than just Putin’s […]
Blame It On Putin?
It would be easy blame the recent volatile (or, shall I say, violent) price action in both the stock and bond markets on Putin’s war. On the topic, I’m of the mind that what is happening in Eastern Europe is almost unfathomable in this day and age. A country being attacked on all sides. Tanks […]
Happy Twosday
Good morning, and Happy “Twosday.” As in 2/22/22, which is not only a palindrome because it reads the same forward as backwards, but today’s date also consists of all the same digits. The ultimate freakiness for such dates occurs at 2:22 am and pm, so brace yourself for that this afternoon. Oh, and according to […]
Working Through The Issues
Make no mistake about it; there is no shortage of issues to work through in this market. In short, this is what corrective phases are all about – dealing with the “new normal” when things change. Remember, the stock market is a discounting mechanism of future expectations. And I think we can all agree that […]
Are We Having Fun Yet?
It’s been a very busy start to the new year and there are a great many pieces to the puzzle that make up this market. While I am short on time this morning, let’s see if we can’t run through the host of issues that investors are attempting to deal with at the present time. […]
Two Thoughts Before You Panic
Unless you’ve been living in a cave, you are likely aware that markets are in the midst of a rather violent “reset” as traders/investors reprice things for the changing environment in fast fashion. To be sure, Friday’s option expiry and corresponding record day for options trading, as well as the obvious high-speed trading algo moves […]
Rethinking The Outlook
From my seat, the key driver to the current action in the stock market remains the spike in bond yields. This morning’s early dance to the downside represents an exclamation point on this concept. In short, yields are breaking out to new highs for the current cycle, and stocks are following the direction of bond […]
Strong US Large-Cap Finish Masks Variable Performances
Stocks finished the final quarter of 2021 at all-time highs. Supported by earnings that were +46% higher on the pandemic reopening, the S&P 500 recorded seventy all-time highs and a third consecutive year of double-digit returns tallying nearly +90% over that period (Forbes, “S&P 500 Notches 70 All-Time Highs…,” 12/31/21). The last string of equally […]
Higher, Sooner
One need look no further than the bond market to understand the current correction happening in the major stock indices. As is often the case, traders appeared to flip the switch the moment the calendar turned to 2022. Gone is the steady march higher based on earnings expectations. Gone is the upbeat view of GDP […]
Market Getting Moody
Traders appear to have returned to a risk-off mode to start the holiday-shortened week. The drivers of the move are fairly obvious as Senator Manchin’s announcement that he won’t support the Biden “Build Back Better” plan and the bad news surrounding Omicron are causing a rethink of the previously optimistic economic view going forward. A […]