Weekend Market Brief – Sunday 9/29/18

Going into last week’s Federal Reserve meeting, speculators increased their already record short positioning on U.S. Treasury bonds to a new record short position. Speculators and investors alike are betting ten-year Treasury yields are headed somewhere between 4-6%, yet they continue to run into an impenetrable wall that is preventing yields from rising past 3.1%. … Read more

Market Brief — Friday 9/28/18

Asian equities moved higher, but European equities tumbled on news from Italy that they are targeting a budget deficit of 2.4% of GDP, which is higher than expected. Italian stocks and bonds got hammered. U.S. investors don’t seem too concerned about what is going on overseas as equities moved higher in the morning. Ten-year Treasury … Read more

Market Brief — Thursday 9/27/18

Asian and European equities were down following yesterday’s Fed rate hike. Foreign equities have been falling as the Fed tightens, which is what is supposed to happen. U.S. equities quickly shrugged off yesterday’s post FOMC drop as stocks quickly recovered from yesterday’s losses. Treasury yields were higher in early trading but were flat in overnight … Read more

Market Brief — Wednesday 9/26/18

The Federal Reserve raised the Federal Funds rate by 0.25%, as expected, and the stock market had the proper reaction. When the Fed tightens the money supply by raising interest rates, stocks should fall, and Treasury bonds should rise. All major stocks indices were down slightly, and Treasury bonds rallied off their recent bottom. The … Read more

Market Brief — Monday 9/24/18

A new tax in the form of tariffs will be hitting American consumer’s pocketbooks in the near future as both the Trump Administration and China fulfilled their promises to implement another round of tariffs today. Rumors are swirling that the Trump Administration will be moving forward with a larger $267 billion tariff against China. Hopefully … Read more

Market Brief — Thursday 9/20/18

Who is buying stocks at their all-time highs? Corporations. Margin debt growth has dramatically slowed due to higher interest rates. Retail and foreign fund flows have also slowed significantly. Corporations continue to repurchase their stock to allow their executives to cash in on their lucrative stock options. When the last marginal buyers are corporations, investors … Read more