Inflation and interest rate cuts: Recent economic data indicates a cooling trend in inflation, with the Federal Reserve’s preferred measure showing a slight increase of just 0.1% from May to June. Core inflation, which excludes volatile food and energy prices, rose by 0.2%. These numbers suggest that inflation pressures are easing, potentially paving the way Read More

AI adoption – Potential equalizer in market cap dynamics: The ten largest stocks in the S&P 500 now represent over 30% of the total market capitalization, sparking a debate about whether this concentration threatens long-term market stability or reflects a new era driven by the rise of artificial intelligence. Some experts argue that while a Read More

Inflation and interest rates: As we look ahead, inflation and interest rates will remain key topics of discussion. The Federal Reserve is dedicated to bringing the rate of inflation back to its long-term target of 2%, and we are seeing steady progress toward this goal. It is important to recognize that progress is being made, Read More

Stubborn inflation: Inflation remains a central concern for both consumers and investors. Recent data has shown a higher-than-expected inflation rate, causing disappointment as investors recalibrate their expectations for rates to begin easing. While markets have given up some gains, they are still materially higher for the year, demonstrating resilience even as prospects for Fed rate Read More

Interest rates and the housing market: Interest rates have moderated somewhat as the markets interpret the Federal Reserve’s recent comments on the prospect of rate cuts later this year. The Fed is still expected to cut interest rates three times in 2024. How will the Fed’s interest rate decisions impact the housing market? Here is a Read More

Earnings wrap-up: Fourth quarter earnings reports are almost all out and the results have been quite resilient. “With 90% of S&P 500 companies having reported fourth quarter results, the results have impressed investors. So far, 78% of companies beat profit estimates by a median of 7%, while 65% of companies beat revenue estimates by a Read More

Earnings: The expected earnings growth in 2024 is still dominated by a small number of mega-cap companies. Here is a comprehensive preview of the Q4 earnings season that is currently underway. “It is interesting to note that four of these six companies are also projected to be the top four contributors to earnings growth for the S&P Read More

Santa Claus rally in effect. It’s that time again, when we all wait to see if Santa Claus will give a boost to our investment portfolios. The Santa Claus rally, which falls within the last five trading days of the year and the first two of the New Year, has been a pretty reliable bright Read More

Good market vibes. Positive earnings, lower inflation and the cooling job market combine to adjust the market’s forecast of further Federal Reserve interest rate hikes. As the root of recent market turbulence was based in the bond market’s expectations of further tightening and/or an extended period of these higher rates, this shift in market perspective matters Read More

Bond market mayhem. The bond market had a year to forget in 2022. 2023 is shaping up to be more of the same. Strong economic data and ballooning U.S. debt are the two most credited reasons why rates have continued to rise and bond values decline. Good economic data is usually a positive for investment Read More