Market Brief – Friday 11/16/18

With third-quarter earnings season coming to an end, corporations have been warning about slower sales, lower earnings, and rising inventory levels. Investors don’t seem to be deterred by this information, as they continue to buy stocks every morning as if the corporations will be wrong. With the holiday season fast approaching and the growth rate … Read more

Market Brief – Wednesday 11/14/18

Despite massive money-printing efforts, Japan’s economy contracted last quarter. Following suit, Germany’s economy also contracted despite heavy support from the European Central Bank. This is further evidence that central banks cannot “print” their way out of weak economic growth. Stocks started their day higher after the latest Consumer Price Index data was released that showed … Read more

Market Brief – Monday 11/12/18

Stock investors will wish the stock market was closed along with the bond market, which was closed today. U.S. stocks were hammered lower on relatively low volume, but today’s move was more about volatility than stock prices. Most investors watch volatility, but they don’t look too closely at the charts. The VIX volatility index had … Read more

Market Brief – Friday 11/09/18

Stocks headed down in early trading following strong a strong Produce Price Index report showing producer prices increased +0.6% MoM and +2.9% YoY. Probabilities of a December 2018 Fed rate hike are now at 80% and will likely rise going into December. The tighter monetary policy is, the worse it is for asset prices. Peter … Read more

Market Brief – Thursday 11/08/18

The global economy continues to slow down as Japanese Machine Orders slumped -13.8% MoM, the largest monthly drop in more than two decades. Chinese automobile sales also fell double digits last month, indicating slowing consumer demand. Despite slower global growth, U.S. investors eagerly tried to bid up stock prices and bond yields as if our … Read more

Market Brief – Tuesday 11/06/18

Trading volumes collapsed today as large money managers and traders wait for the election results. Retail investors continue to bid stocks higher based on all the articles showing how stocks tend to rally following midterm elections. While I haven’t had time to go back and look through the data points, I’m guessing not many of … Read more

Market Brief – Monday 11/05/18

Asian equities started the trading week down as China’s Caixin Composite PMI (factory survey) fell to its lowest level since February 2016, when the factory survey was on the edge of contraction. This is an indication we are winning the “trade war,” and also a sign that the Fed’s monetary tightening is affecting the global … Read more