Weekly Update

Markets Upended by Russian Action


Published March 4, 2022

Another week, and another twist in our market narrative. Investors are trying to parse so many crosscurrents, we can all be forgiven for not knowing which end is up these days. We are now 100% certain the Fed will raise interest rates at their March meeting. However, that once-possible 0.50% rate hike went out the window when Russian troops marched into Ukraine. (more…)

Weekly Update

The Stock Market Is at a Critical Juncture


Published February 25, 2022

 

This week’s acceleration of market turmoil had us reaching back into the bag for a little history. Below is a table of single-day declines in the S&P 500. First, note how clustered these selloffs are; all but one taking place around three major events – the global financial crisis, the pandemic, and 1987 market crash. (more…)

Weekly Update

Stock Market Performance During Rising Rates


Published February 18, 2022

 

Stocks remain fully in the midst of a correction, searching for a bottom that may not come until after the Federal Reserve takes action in March. In the meantime, our friends at Delta back up and survey the broader picture to comment on market behavior during various interest rate/economic growth scenarios. (more…)

Weekly Update

Finding Fuel for a Future Rally


Published February 11, 2022

 

In the face of a fair amount of gloom as the stock market continues struggling to find traction, we turn to a positive piece from our friends at DIM. They walk through some of the supports for the stock market that, over time, might provide some lift once interest rate outlooks settle down. (more…)

Weekly Update

Markets Struggle to Find Footing


Published February 4, 2022

Stocks remain troubled. The past ten trading days have seen the market pushed all over the place with huge swings depending on whether investors were pleased by company earnings reports. Pandemic favorite Netflix issued soft subscriber growth guidance and was hammered – giving up two years’ worth of stock gains.
(more…)

Weekly Update

Historical Data Suggests Further Volatility Ahead Before a Strong Recovery


Published January 28, 2022

 

This week we are reviewing some interesting data from a recent presentation made by CFRA. The three charts tell a possible story for how this year will play out. First, after a strong year in the market in 2021, we have seen stocks hit a wall, tumbling hard throughout January. This selloff following a strong period is common, at least in the short-term. (more…)

Weekly Update

Selloff in Growth Stocks Expands to Broad Market


Published January 21, 2022

 

Markets have struggled mightily so far in 2022 as looming Fed policy changes merge with Omicron-fueled slowdowns and Russia-Ukraine tensions to put investors on edge. Growth stocks, presumably more sensitive to rising interest rates, have stumbled the most. (more…)

Weekly Update

Value Stocks Might Finally Be Ready to Run


Published January 14, 2022

Last week we discussed the interest rate surge taking place at the beginning of 2022. This surge has driven a major shift in favored sectors. Cyclical “value” sectors like energy and financials have become the market darlings. (more…)

Weekly Update

The Fed Presses on the Brakes


Published January 7, 2022

 

Markets have kicked off 2022 with a bit of a bang. Interest rates have surged higher as investors bet that the Federal Reserve will act quickly to tamp down nascent inflation and return interest rates to their pre-pandemic levels. (more…)

Weekly Update

This Weird Job Market


Published December 31, 2021

We can think of few other aspects of life that have changed so dramatically from the pandemic as employment and the job market. Radiating outward from the changes in the job market, wages are the most critical component of inflation, a huge buzzword in 2021. If wages have been permanently kick-started into a regime of growth, then inflation will remain far more than a transitory influence in the economy and markets. (more…)