A State of Confusion Financial Markets Equity markets have been in a state of confusion these past two weeks. Markets rallied strongly after Donald Trump’s decisive victory but experienced a decline of equal magnitude just one week later. The markets fell over a fear of higher interest rates, which has been the principal mover of…

Remarkable! Financial Markets It’s over!  Yes, the long-awaited presidential election is over, and it was an unexpectedly clean, quick, and uncontested affair. Equity markets rallied similarly to the 2016 election.  In many respects, it was a relief rally with investors happy to avoid a long, drawn-out process. It was the Dow Jones’ largest post-election day…

A Big Week in China—a Bigger One in the U.S. Financial Markets United States equity markets were volatile this past week, and for good reason–the long-awaited presidential election will occur tomorrow.  Volatility was the name of the game, and it was somewhat expected, although, as we and many other observers have pointed out, economic indicators suggest…

A Leader Who Doesn’t Know It! Financial Markets U.S. equity markets snapped a six-week winning streak, finishing the week lower.  Certainly, earnings season angst contributed to the weakness, but for the first time in a while, investors were concerned about rising interest rates and the possibility of a less accommodative Fed.  There are several reasons…

The Sun Also Rises! Financial Markets This past week was an excellent one for equity markets and investors.  The S&P 500 set a new high, and the other major equity indices also advanced. Some may be surprised to learn that the reason we borrowed Hemingway’s famous title is not because of recent market gains.  But…

Economic Statistics Bolster Confidence! Financial Markets Last week proved to be a big confidence builder for the U.S. economy. Friday’s job numbers provided investors with a strong sense that the Federal Reserve’s efforts are working and that a soft landing is becoming even more likely. As you will note from the table below, markets didn’t break…

A Tidal Wave of Liquidity! Financial Markets United States equity markets continued to advance this week.  The Federal Reserve sent a powerful message two weeks ago when it lowered rates by 50 basis points. Investors interpreted the move to mean the Fed is on a clear easing path and will not hesitate to cut rates…

They did it! Financial Markets As expected, the Federal Reserve lowered interest rates this past week.  While the cut was widely anticipated, the magnitude of the cut was a bit surprising.  The Fed cut rates by 50 basis points, a large move by historical standards.  There was some market volatility around the announcement, but major…

The Age of Productivity Equity markets certainly had an excellent week!  Despite receiving some higher than expected inflation data last week, investors appear fully convinced that the Federal Reserve is their friend.  The only question is how good a friend.  Well, they will find out on Wednesday, when the Federal Reserve Open Market Committee concludes…

Feast or Famine Financial Markets Equity markets sold off last week, with the S&P 500 experiencing its worst week since March 2023.  As our title suggests, investors appear to be reacting impulsively rather than deliberately.  The major concern this past week was the economy, and Friday’s widely anticipated employment report propelled markets lower.  Specifically, the…