Markets in search of direction is usually a time when patience is warranted. To be sure, January 2022 was a tough month for risky assets. Risk premium was wiped from technology stocks at a breath taking pace. For one thing, from the rubble new leaders and new risks emerge. The challenge now is balancing the […]
Why the Bank of Canada did not raise interest rates today? A question hotly debated. To summarize the current narrative, investors believe global Central Banks are behind the curve fighting inflation. Meaning, the time to fight inflation is now not later in March. The inflation hawks were disappointed today, as market probability suggested a 70% […]
Mean reversion trade ideas sometimes yield outsized returns. This type of trade has been around forever and still has a decent chance of success. Of course, this entirely depends on sound risk management practices. There is nothing worse than putting on a trade and losing money because you can’t admit you’re wrong. At the moment, […]
2022 stock market predictions are common to start a new year. Not surprisingly, Wall Street loves to parade out fund managers and analysts with their crystal balls and pixie dust. Well, I think this year I will do the same with the warning that I’m a flexible investor, so my opinion does change if the […]
US Treasuries are no longer risk free, but should investor’s ignore inflation and assume all is okay? For those who adhere to Modern Portfolio Theory (MPT), this question must be a real thorn in their side. After all, Harry Markowitz, who pioneered MPT, probably never thought the US 10-year Treasury yield would ever be 1.42%! […]
Treasury yield curve and inflation expectations look lousy and the stock market continues higher. The narrative around inflation is a hot topic on Wall Street and Washington these days. From the markets perspective, we are in the beginning stages of a tightening cycle. Surely, some will argue the Fed decision to taper yesterday is not […]
Non-farm payrolls surprise economists, driven by easing of pandemic restrictions. Shocker, eh! That was this mornings headline response to the monthly non-farm payrolls data released by the Bureau of Labor Statistics. Non-farm payroll highlights: employment rose by 943,000, expected 845,000, best since August 2020 Unemployment rate slid to 5.4%, expected 5.7% increase driven by growth […]
Making use of market technical analysis gives you a competitive advantage and a boost to the bottom line. This article, or update, aims to give you all the important information to keep your portfolio on track. Of course, if things get crazy, you’ll find out what trades to make right here. Holy Grail Markets To […]
Reversal of February’s sector rotation trade heats up. Back in March of this year I highlighted the sector rotation trade unfolding in the equity markets. Of course, now the reverse is happening. Regardless, spotting sector rotation trades is an easy way to make money buying stocks. Although this may be true, spotting sector rotations early […]
It’s high time for a stock update. I’ve been so focused on the sector rotation trade and the crypto currency correction it slipped my mind to post an update. With this in mind, here are some of the headlines driving markets today. Last week Elon Musk trashed crypto currencies in a Tweet, but still thinks […]
