Led by the software companies, the NASDAQ fell about 1.5%. A narrative is beginning to emerge that AI will begin to replace software. Is this a realistic concern? Bloomberg writes that of the software companies that have released results, 67% have exceeded expectations. That compares with 83% for the overall tech sector. Will this narrative … Read more
Equity markets were bolstered by optimism in the manufacturing sector which unexpectedly expanded in January by the fastest pace since 2022. The data surpassed all estimates provided by Bloomberg. A 10-point increase in a gauge of new orders was a major reason for this reading. Order backlogs expanded for the first time since 2022 while … Read more
The carnage in the gold and silver market is incredible. Spot gold in having its worst selloff since 1983. Silver’s plunge is the worst since “the late 1960s” if not on record according to Bloomberg. The accepted catalyst was a rebound in the dollar and the planned nomination of Kevin Warsh as FOMC Chairman. The … Read more
Bloomberg estimates four companies (AMZN, META, GOOG, MSFT) will spend $505 billion on AI capital expenditures for 2026, up from an estimated $366 billion in 2025. Wall Street is growing increasingly concerned about the ability to generate profits from all this AI cap ex, expenses that are started to viewed as a large potential risk. … Read more
No change in monetary policy is expected at the conclusion of today’s FOMC meeting. The vote is expected to be uneventful, lacking the drama of past meetings. The markets are suggesting the next interest rate reduction may be in June, followed by another at the end of the year. This outlook is in direct contrast … Read more
The dollar has declined to a four-month low and gold/silver are surging to record levels over fiscal and geopolitical fears. Earnings season accelerates this week as over 90 S & P 500 companies post results. META and MSFT announce on Wednesday and AAPL on Thursday. The handful of profits that have been released have topped … Read more
It is widely accepted that the FOMC will not change monetary policy on Wednesday. The Committee’s comments about lingering inflationary pressures, stabilization in the labor markets and current growth fueled by AI will be parsed. The Committee will not issue a new “dot plot” or the individual members expectations for inflation, growth and employment. At … Read more
Markets were relatively quiet yesterday following the President’s statement that he would not use force to acquire Greenland, calling for immediate negotiations. Equites gained further momentum later in the day as the President said there is a “framework” for a deal. The Treasury market also was considerably quieter following the realization that there may not … Read more
Some pointed to the headlines that a Danish pension fund is planning to exit US Treasuries for the selloff in the UST and the equity markets. The odds of wholesale selling are extremely low as it is the proverbial nuclear option…MAD III. [MAD is the cold war acronym of Mutual Assured Destruction…MAD I was not … Read more
Markets are climbing a wall of worry. Valuations are historically high. The geopolitical environment is changing every day. Is the Administration bullying the Fed? The President is demanding a 10% cap on credit cards. Societal pressures are at levels not experienced since the early 1970s. The national debt and the interest coverage on it is … Read more
