Inflation

Uncategorized

The Stock Market’s Winning Streak Leads to Calls for a Pullback


Published August 20, 2021

The following content from MarketWatch highlights the reason why we are model-driven investors. It is all too easy to get caught up in speculation about what markets “should do” and let that drive our investment decisions. We find it far more productive for our money to row with the market’s price trend, recognizing that market prices move up as well as down, and allowing ourselves the flexibility to pursue gains regardless of market price direction.

(more…)

Weekly Update

A Labor Squeeze Could Be the Inflation Spark


Published May 7, 2021

The predominant narrative right now in the markets is that inflation will rise as economies reopen and recover. While it’s easy to find inflationary movements in the price of some goods like lumber, houses and food, the primary driver of overall inflation comes from rising wages. Pre-pandemic, wages had been stagnant for years. (more…)

Weekly Update

The Nasdaq Remains Range-Bound, for Now


Published November 6, 2020

 

We have noted multiple times recently that the post-election market is almost always a very good one; lots of December upside usually as investors breathe a collective sigh of relief that election uncertainty has passed and the country can get back to business. This time we have seen, perhaps, a bit of an early rush as stocks ripped higher on election day and kept on going from there. (more…)

Weekly Update

The Nasdaq Rally “Whale”


Published September 11, 2020

The recent stock market pullback has thus far basically reversed the August surge. Our focused Nasdaq 100 (QQQ) dropped to its 50-day moving average for the first time since the rally began in April. The rally in August (blue arrow below) has been, in part, attributed to a multi-billion $ options bet made by tech investor Softbank. (more…)

Uncategorized, Weekly Update

China Maybe Gets Some Mojo


Published July 10, 2020

timingcube_cartoon071020

The Wall Street Journal’s excellent daily blasts: The Daily Shot and Real-Time Economics provide a quick overview of economic and market trends and data. We were struck by a set of charts in one of this week’s blasts from those sources. Coinciding with the news that the Chinese government had notably expanded measures aimed at supporting the Chinese stock market, these charts could be read as a broader initiative by China to sort of take global market share while the U.S. pulls back on the global stage. We are very far from geopolitical experts, of course, but we are pretty good at seeing trends (being trend-followers!). This looks like a trend in the making to us (or continuation of a bigger trend, depending on your time frame). Herewith are a series of China-related charts. May be the start of something bigger and longer-lasting.

(more…)

Uncategorized, Weekly Update

Risks for the Market Year Ahead


Published January 17, 2020

timingcube_cartoon011720

Below we reprint a recent article from Charles Schwab analyst Jeffrey Kleintop outlining the possible risks to the current market uptrend. While the comments focus on the risks, we can also read between the lines and understand what the market’s expectations are – which creates the risks, of course. (more…)

Uncategorized, Weekly Update

The Market Needs Inflation


Published November 15, 2019

timingcube_cartoon111519

We are shaped by the financial crises we experience. For those of us who lived through the sharp inflation hike of the 1970s, we are forever sensitive to inflation, looking behind every datapoint for evidence of the inflation beast lurking. Over the past decade, inflation has been remarkably steady with the inflation beast long ago tamed. (more…)

Uncategorized, Weekly Update

An overview of economic and market pros and cons


No Comments

Published June 7, 2018

timingcube_cartoon060818

The summer heat has arrived in force here in Austin over the past couple of weeks.  Our focus Nasdaq 100 (QQQ) index has also been hot, emerging from a three-month market correction to break out to new highs recently.  The commentary below from the team at Charles Schwab does a good job of outlining some of the major positives and negatives the market wrestles with these days.  We hope you find it informative.
(more…)

Uncategorized, Weekly Update

A Wall of Worry Is Building


Published February 23, 2018

timingcube_cartoon022318

A recent commentary from the folks at Schwab provides a good overview of where markets stand right now. We have pointed out in recent weekly blog posts the sharp rise in interest rates that has occurred since September. (more…)