Market Commentary

Daily reports from our Chief Economic Strategist.

PERHAPS THE LARGEST QUESTION FACING THE MARKETS
Perhaps the largest question facing the markets is whether the commitments by the Federal Reserve and the Biden Administration to let the economy run hot will
INAUGURATION DAY IS TODAY
Today is Inauguration Day. I think most will agree the vitriol is intense. Will the rhetoric subside? Will President Biden be able to enact his “restorationist agenda?” Will the Democratic Party splinter as some of the more progressive demands may
SOME DAUNTING STATISTICS
Several times I have commented about massive retail option call buying. According to Bloomberg over the last 30 days an average of more than 22 million calls traded across US exchanges, a record. Of this amount,18 million calls in sizes of
SOME THOUGHTS
For many years I titled these remarks “Early Morning Commentary,” a commentary as to how I view of the socio economic and geopolitical issues facing the markets and the economy. I am flattered by the
COMMENTS ABOUT THE YIELD CURVE
The yield curve is the steepest it has been since 2016. The current difference between the 2 year and 10-year Treasury is about 100 bps (basis points) up from about
WILL POTENTIAL REGULATION OF ARTIFICIAL INTELLEGENCE COMPANIES BECOME A MAJOR MARKET RISK?
Will regulating artificial intelligence…aka social media companies…become a major market risk? As widely known, social media companies are massive AI operations, their data centers running
WILL THE EVENTS IN WASHINGTON IMPACT AN UNLIKELY SECTOR?
Will the events in Washington impact the markets? Recent happenings far exceed any Netflix mini series.. The potential ramifications far exceed anything that one can
IS WASHINGTON FISCALLY INSANE?
In nine days, the country will have a new president. Regardless of one’s view of the President, the primary villain or champion will no longer be in power. In my opinion during the
2020 IS CONTINUING INTO 2021
Equities continued their advance, rising on a potential stimulus plan that far exceeds anything yet passed. In my view Washington has lost total fiscal restraint and if
THE VIX CONUNDRUM
I commented Tuesday about the VIX “conundrum” where this measure of volatility is rising even as interest rates remain essentially unchanged. I had remarked perhaps the

balanced-tagline