Weekly Market Commentary

28 11, 2022

Weekly Market Commentary – There was a shift in the winds of monetary policy.

2022-11-28T14:26:20-04:00November 28th, 2022|Weekly Market Commentary|

The Markets There was a shift in the winds of monetary policy. Last week, it became clear the Federal Reserve (Fed) had softened its hawkish stance. The minutes of the central bank’s November policy meeting indicated the Fed was likely to slow the pace of rate hikes soon. There was a caveat, though. The minutes noted: “…with inflation showing little sign thus far of abating, and with supply and demand imbalances in the economy persisting…the ultimate level of the federal funds rate that would be necessary to achieve the Committee’s goals was somewhat higher than [Fed officials] had previously [...]

22 11, 2022

Weekly Market Commentary – Thanksgiving and football go together like turkey and stuffing.

2022-11-22T10:19:39-04:00November 22nd, 2022|Weekly Market Commentary|

The Markets Thanksgiving and football go together like turkey and stuffing. For some families, though, this year may be more like a turducken, stuffed with American football and the sport the rest of the world knows as football (soccer). The men’s World Cup, which is played every four years for national glory, the Jules Rimet trophy, and millions of dollars in prize money, began on Sunday and will end on December 18. During the tournament, researchers may track the influence of sentiment on markets. According to Mark Hulbert of MarketWatch, previous research has found that a team’s performance – [...]

14 11, 2022

Weekly Market Commentary – Last week was remarkable for many reasons.

2022-11-14T14:04:08-04:00November 14th, 2022|Weekly Market Commentary|

The Markets Last week was remarkable for many reasons. One reason is that sky watchers around the world had an opportunity to see a total lunar eclipse. The moon, Earth and sun aligned, causing the moon to appear crimson. We won’t see another total lunar eclipse for three years, reported Denise Chow of NBC News. Another reason, and one that’s far more important to consumers and investors, is that data suggested inflation may be waning. The Consumer Price Index, which is a measure of inflation, was released last week. It showed that prices rose more slowly than expected in [...]

7 11, 2022

Weekly Market Commentary – It’s the lag time.

2022-11-07T16:11:02-04:00November 7th, 2022|Weekly Market Commentary|

The Markets It’s the lag time. To no one’s surprise, the Federal Reserve continued to battle inflation last week, raising the federal funds rate for the fourth time this year, reported Claire Ballentine of Bloomberg. The Fed is making borrowing more expensive to dampen demand for goods, which should lower inflation – but it’s not a quick fix. Rate hikes are kind of like winter planting. In cold weather areas, people sometimes spread grass seed in November with the expectation that it will germinate the next spring. It’s similar for rate hikes. The Fed lifts rates with the expectation [...]

31 10, 2022

Weekly Market Commentary – Some companies are doing better than others – a lot better.

2022-10-31T12:50:55-04:00October 31st, 2022|Weekly Market Commentary|

The Markets Some companies are doing better than others – a lot better. It’s earnings season; the time when companies share how well they performed during the previous quarter. Earnings reports are important because they provide information about a company’s financial health. Shareholders pay particular attention to earnings, which are company profits after expenses have been subtracted. At the end of last week, slightly more than half of the companies in the Standard & Poor’s (S&P) 500 Index had reported results for the third quarter of 2022. The blended earnings growth rate* for the S&P 500 was 4.1 percent, [...]

24 10, 2022

Weekly Market Commentary – Markets turned – again.

2022-10-24T13:46:25-04:00October 24th, 2022|Weekly Market Commentary|

The Markets Markets turned – again. Markets continue to be volatile. Last week, stocks headed north. Nicholas Jasinski of Barron’s reported the change of direction reflected investors’ desire for the market to finally hit bottom. He may be right, but corporate earnings suggest we are not there yet, according to Bob Pisani of CNBC. Corporate earnings season is underway. It’s the time when management tells shareholders how their companies performed during the previous quarter. With 20 percent of S&P 500 companies reporting actual results for the three-month period that ended September 30, the blended* earnings growth rate was 1.5 [...]

17 10, 2022

Weekly Market Commentary – We’re not there yet.

2022-10-17T12:57:51-04:00October 17th, 2022|Weekly Market Commentary|

The Markets We’re not there yet. Investors are understandably eager for the stock market to hit bottom. Some hoped it happened last week, but it did not. Despite the Fed’s rate hikes, last week the Consumer Price Index showed the annual rate for headline inflation was 8.2 percent in September. That’s down from June when the annual inflation rate was 9.1%, but a long way from the Federal Reserve’s two percent target. The core inflation numbers, which exclude food and energy, hit at a 40-year high last month. The news rocked the markets. “A lot of investors are looking [...]

10 10, 2022

Weekly Market Commentary – Bah humbug!

2022-10-10T13:21:35-04:00October 10th, 2022|Weekly Market Commentary|

The Markets Bah humbug! Last week, OPEC+, which includes the Organization of the Petroleum Exporting Countries and allied oil producers like Russia, chose to cut production by two million barrels a day. The stated goal is to keep crude oil prices above $90 a barrel. The production cut, which will push gasoline and other prices higher, complicates efforts to fight inflation, reported Salma El Wardany and colleagues at Bloomberg. According to economic data, the Federal Reserve’s inflation fight has produced mixed results, so far. Like the ghosts that visit Scrooge in A Christmas Carol, economic data offers information about [...]

3 10, 2022

Weekly Market Commentary – The third quarter marked a change in attitude.

2022-10-03T12:48:01-04:00October 3rd, 2022|Weekly Market Commentary|

The Markets The third quarter marked a change in attitude. So far, 2022 has been a tough year for investing. We’ve experienced an unusual phenomenon – the simultaneous decline of stock and bond markets. Throughout the third quarter, investors’ concerns focused on global instability, rising prices and the possibility that central bank efforts to tame inflation would cause economic growth to falter. The result has been tremendous volatility in stock and bond markets. Early in the third quarter, U.S. stock markets gained ground as investors latched onto the idea that inflation had peaked, and the Federal Reserve would soon [...]

26 09, 2022

Weekly Market Commentary – Central bank tightening sparked recession fears.

2022-09-26T13:41:30-04:00September 26th, 2022|Weekly Market Commentary|

The Markets Central bank tightening sparked recession fears. Last week, the Federal Reserve (Fed) raised the federal funds rate for the fifth time this year. During 2022, the Fed has lifted its benchmark rate from near zero to 3.12 percent. Fed policymakers indicated that they expect to raise the rate again this year. That’s going to make borrowing more expensive as rates on credit cards, home mortgages and business loans increase. Frankly, that’s the Fed’s goal. It wants to tamp down consumer and business spending. When spending falls, demand for goods and services falls and so do prices. Lower [...]

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