Market Commentary

Interest Rates

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The Federal Reserve chairman Powell earlier this week made some calming remarks about interest rates. The Fed has been raising rates steadily for a couple years and recently these increases have put a lot of pressure on stock prices. Of course the trade dispute with China has contributed as well as the weakness in the […]

Market Commentary

Financial Stability Report

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interest rates

For the first time ever the Federal Reserve has put out the Financial Stability Report. They plan on producing it twice a year. It is supposed to cover the major financial issues, good and bad of the economy. This first report covered a concern about corporate debt and other forms of risky debt, junk bonds […]

Market Commentary

China

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people shopping

There is very little concern about China and the huge debt they are and have been building for years. It may be a case of crying wolf. In the past when pundits and economists have rang the bell of danger about China’s debt woes, China has been able to postpone the implosion that will shrink […]

Market Commentary

Rising Interest Rates

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earnings report

The Federal Reserve met last week and they left the Fed Funds Rate where it is as expected. However, they reiterated their intention to raise rates in December and into next year. Their reasoning looks flawed. They could point to an increase in inflation as seen in last week’s PPI report. That would be reasonable […]

Market Commentary

The Election and the FED

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etf vs etn

The election this week produced a small rally in stocks and the odds are favorable that the rally may well continue into the end of the year and into next. When 18 of the last 18 midterm elections produced a rally within a year, and the average return being 17% it is hard to ignore […]

Market Commentary

Volatility

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retail sales calendar

Movement of stocks exceeding 200 points per day on the DOW has become common place starting in October. What this means is that investors should not get excited if the stock market moves up or down when it moves 300 to 400 points in a day. Volatility is part of the market and it should […]

Market Commentary

Earnings Season

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earnings report

With over 70% of the S&P500 companies reporting their third quarter earnings in October the market appears to unimpressed. In fact, more than the normal amount of those 70% that reported have beaten their estimates, and still the market does not care. For those companies beating their estimate they are down more than one percent […]