Market Commentary

Investing in New Technology is Difficult

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Technology

Recently, the founder of a much-hyped electric truck company, Nikola Corp was arrested. Trevor Milton was accused of claiming that his company had manufactured working truck prototypes that would revolutionize the industry. He resigned in September. The story does not end there. It ends with investors putting their hard-earned money into Nikola’s stock bidding the […]

Market Commentary

Delays in Buying Furniture

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zero-coupon bonds

Why are there so many delays in Buying Furniture? If you have tried to order anything from couches to tables, to lamps you know that it takes months to have the product arrive. Covid is not the only reason for the delays, but it is a major contributor. Deliveries of basic materials have slowed way […]

Market Commentary

Housing Starts

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home sales

Starts for June increased by 6.3% from a revised downward number for May. Permits however dropped 5.1% which was an eight-month low. Rather than reflecting a lack of demand the fall is likely attributed to a hesitancy caused by expensive building material as well as shortages of labor and land. The Commerce Department report, out […]

Market Commentary

Industrial Production

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Factory Orders

This week the IP (Industrial Production) number was released for June. It rose .4%, a little less than expected, and the month before was .7%. Capacity utilization came in at 75.4% from 75.1%. The recovery in the economy is clearly in place but there are problems. Besides the input cost rising, there is a shortage […]

Market Commentary

PCE Index

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New Job Openings

It seems we are not far away from increasing inflation numbers. This time it is in the PCE index which is the FED’s favorite inflation gauge. It increased .5% last month even with consumer spending being flat for the month. That spending number was skewed as last month’s spending report was revised up to .9% […]

Market Commentary

LEI – Leading Economic Indicator

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gap graph

The monthly Leading Economic Indicator report stayed steady at 1.3%. This is supposed to tell us what the economy is going to do in the next few months. Being positive is saying that economic growth will occur in the new 3 to 6 months. What components make up that report are: Average weekly hours, manufacturing […]

Market Commentary

Inflation

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Possibility of inflation.

We have been talking and writing about inflation for several months. The latest figure from the most recent CPI number released yesterday has inflation running at over 6% annually up from 5% last month. The economists are saying it is temporary as the economies around the world restart. It is hard to understand why they […]

Market Commentary

Investor vs Trader vs Speculator

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zero-coupon bonds

The stock market has investors, traders, and speculators who all buy and sell equities. At times their actions are irrational. We saw this in the Gamestop (GME) price as it rose to $483 intraday on January 28th and then fell back to $42.40 on February 22nd. Today it is at $265. This for a stock […]

Market Commentary

Jobs Report

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Jobs Report

This week the May jobs report will be released on Friday. As a reminder, the April report was poor at 266,000 new jobs and the unemployment rate inched up to 6.1%. This was positive for stocks as it meant that the Federal Reserve would kick the can down the road in tightening the money supply. […]

Market Commentary

Fraud and Investing

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Technology

Almost one in four Americans were victims of credit card fraud in 2020. It was either fraud or a card was stolen. Both fraud and identity theft are rising fast. Our daily lives are more than ever on the net, and we, through our cell phones, laptops, or TV, are spending more time online. This […]