Technology stocks are under pressure again as investors face the end of the Federal Reserve’s Quantitative Easing measures. The chart below of the ETF “QQQ” illustrates the dangerous position technology stocks are facing. Do prices collapse from here, or do we get a solid bottom and begin a new rally? To be sure, that’s anyone’s […]
It’s been a while since I posted a market update. So, without delay here is your global macro setup as we approach mid-February. To summarize, we have a bit of a tricky setup at the moment. First off, global Central Banks are trying to pivot to a tightening monetary policy without upsetting the apple cart. […]
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 […]
Inflation is a mixed bag of statistical noise. Today I want to highlight an interesting divergence between two key energy markets. The chart below shows to collapse in oil prices today after the FED announced it was starting to taper QE by 20 billion per month. To be sure, prices are pretty lofty at these […]
Inflation and the bond market have puzzled investors since forever. Surely you’ve noticed the price of everything seems to be going up these days. But, is inflation taking root in our daily lives like the financial TV networks claim? Without a doubt understanding inflation is important. More importantly, the difference between inflation and deflation is […]
