Looking back to the early 1900s, stock prices from peak to trough fall -68% on average and take twenty-three years, on average, to recover their Bear-market losses. For most retirees in their mid-sixties, losing more than half their money is a recipe for financial disaster. Tacking on an additional twenty years to recover, assuming no … Read more
Shortly before Asian markets opened Thursday night, President Trump announced that effective June 10th, a 5% tariff on all imported goods from Mexico that will increase on the first of each month by 5% until the cap of 25% is reached. The tariffs won’t be removed until Mexico puts a stop to the illegal immigrants … Read more
Stock prices and Treasury yields opened higher on the heels of yesterday’s buying frenzy going into the closing bell. The S&P 500 tagged its overhead resistance at 2,800 before sellers came in. In overnight trading, 10-year Treasury yields slid below the bottom end of the Federal Funds rate, which is the overnight bank lending rate. … Read more
Stocks and Treasury yields started the day lower as the S&P 500 broke below its 100-day moving average but found buyers at its 200-DMA. Treasury yields held their early morning decline. Unemployment news out of Germany shocked financial markets as in May the number of unemployed jumped 60,000. According to Germany’s Federal Labor Agency, about … Read more
Stock investors shrugged off the weak economic news out of Asia and President Trump’s comments that we aren’t ready to make a deal with China in early trading. Ten-year Treasury yields broke support in early trading and are now threatening to yank the broad equity market lower. Further threatening the equity rally is crude oil … Read more
In overnight trading, Hong Kong exports fell -2.6% against expectations of a -0.1% drop. Breaking down Hong Kong exports by country, to the U.S. -17%, to China -1.3%, to Japan -12.5%, to Taiwan -24.4%, and to Singapore -32.1%. Imports were down -5.5% against a -0.1% expected drop. China industrial profits fell -3.7%, manufacturing -4.7% and … Read more
Retirees have many issues to face these days, but the biggest and most important issue stems around their money and more importantly, how long it will last. Most investors perceive that the return on their money is more important than a return of their money, but in retirement, the opposite is true. Yet most investors … Read more
Stocks jumped out of the gate, not because today’s economic news was good, but due to the buying surge going into yesterday’s market close. Stocks ‘gapped’ higher on the assumption that the Bulls were set to pay a premium for stocks. To validate the overnight move in stock prices, Treasury yields rose as well. Shortly … Read more
U.S. equities are finally starting to realize that the economic data is not improving. Both stocks and Treasury yields were down in early trading, with nearly the entire Treasury yield curve inverted against the Federal Funds rate. Following another dismal report out of Germany’s manufacturing sector last night, The U.S. Flash Manufacturing PMI survey came … Read more
While investors eagerly snap up stocks on the hope of a trade deal with China, the Trump Administration is considering a ban on a Chinese video surveillance company’s ability to purchase American technology. Adding to the likeliness that a trade deal is not on the horizon, Bloomberg broke a story last night stating that the … Read more