Market Commentary

The Minutes from the recent Fed meeting were largely a non-event. The Committee stated “Participants observed that a restrictive policy stance would need to be maintained until the incoming data provided

The renewed surge in Treasury yields was the catalyst for a slide in equities, with geopolitical tensions and dire forecasts from bellwethers WMT and HD further souring the

Is the market coming to the realization that the overnight rate is going higher?  In about 2 weeks monetary policy expectations have changed about

January ’s CPI is released at 8:30.  It is generally agreed that a softer reading is likely to

Tomorrow the government will release the January CPI, which consensus expect to have climbed 6.2% on a year-on-year basis.  The monthly gain is seen at

A Bloomberg headline read “Stocks Show Exhaustion After a Surge in Bullishness.”  Bullishness among retail investors is viewed as a contrarian indicator.  According to the American Association of Individual Investors, retail investors are bullish for the first time since April and the percentage of retail investors with a bearish view over the next six months … Read more

Things can now get really interesting.  For all the market focus on the end to the monetary tightening cycle, Friday’s employment data refused to adopt this narrative.  The data might be impacted by revisions and the like, but it is hard to argue with headline payroll growth that is literally off of the forecast chart. … Read more

Most are confused by the massive disconnect about the interpretation of FRB Chief Powell’s comments.  The WSJ wrote “Mr. Powell could not have been clearer in his meeting press conference that he thinks inflation remains a problem and the Fed is a long way from done.”  The word disinflation, the word that was a catalyst for the advance, … Read more

Today, it is widely expected the Federal Reserve will increase the overnight rate by 0.25%.  The market is expecting the Fed will pivot sometime in early summer with the overnight rate being lower on December 31 than February 1. January’s stellar performance is predicated upon such an outlook materializing.  As measured by the VIX, complacency … Read more

It is often penned the markets hate uncertainty.  There is near unanimity today’s outlook is the opaquest in at least two generations facing a multitude of cross currents. Against this backdrop, Treasuries are posting the best start of the year since 1988.  The NASDAQ is heading to the best start of the year since 1999 … Read more