The Fed’s dual mandate is now a tri-party bail out

On Friday the 2nd revision to the Q1 GDP number came in at 0.8% annualized versus 0.5%, which was the first read. We get the last look at the end of June, although the number is revised further after that. The robust retail sales numbers that Commerce allegedly saw and reported last month did not […]

Markets line in the sand on Memorial Day

As I wrote earlier this week, the adage of sell in May and go away, has to be on the table this year, more than ever. The markets are looking at a wall of worry over the next six months, which I believe still needs to be priced in. A highly contested election with 1968-like […]

Many Americans can’t foot the bill

Almost 46% of Americans would be hamstrung if an unexpected $400 bill showed up in the mail, according to a new study by the Federal Reserve. That does not sound like an economic recovery. The fact that almost half of the 99 percenters don’t have $400 in savings to foot a vet bill or a […]

Greenback strength bolsters stocks

The stock run up I wrote about on Monday is taking hold. Equities were up 1.25% and more on Tuesday with Wednesday’s futures showing another 0.75% jump. These moves come as the yen and yuan have been devalued on Monday and Tuesday overnight respectfully. Precious metals were taken to the woodshed with gold losing $20 […]

What’s going on in the derivative market?

I want to give up a primer on derivatives. These are esoteric contracts generally linking two or more securities in a “If … then” scenario. Theses instruments have a notional value in the 100s of trillions of dollars — with no one knowing the true market cap of the entire market. Some will say its […]

Revving up the May stock selling

Let’s look at “Sell in May and Go Away.” The Dow and S&P 500 indices are in the green for the year — only marginally — at 0.4%. The adage of selling generally — not just this year — takes into account that most of the growth in the economy has already been baked in […]