Stocks soar despite anemic GDP

As the first quarter ends Friday we see that while sentiment has exploded, economic growth is muted. On Thursday the feds released the third revision (not the final revision since it will be changed again and again) of GDP for the final quarter of 2016 and the year. The latest revision of Q4 showed growth […]

Taking stock of equities run up

Yesterday we spoke of traders window-dressing their returns at year’s end to make clients portfolios look better. Monday’s trading was not that, it was the black-box algos trading up to set new all-time high records on the Dow Jones industrials, the broader S&P 500 and the tech-laden Nasdaq. The President-elect’s honeymoon is being extended as […]

Yellen can’t connect the dot plot

Janet Yellen in her press conference Wednesday said that the US GDP for next year and 2018 will be lower than previously expected, yet all is well according to the Fed chief. The Fed governors projections for economic growth (dot plot) was knocked back to below 2% for 2017 and 2018. Remember that the Fed’s […]

June’s a tune up for rest of the year

So June is here and the living isn’t easy. Last week I wrote about the adage, selling in May and going away. Here are the index levels on 5/27/16 and for the last day of May: Dow Jones: 17,828.29   17,787.20 S&P 500: 2,090.10   2,096.96 Nasdaq: 4,901.77   4,948.06 Gold: $1221.30   $1,218.60 Silver: $16.30   $15.99 US 10-year: […]

Why is your nest egg still in the stock market?

Wake up! What is the upside to keeping your 401(k) or other retirement funds in stocks. Did you learn nothing from 2008? You are on the wrong side of the Federal Reserve and a global recession. The major indices are down over 11% this year alone. More than $16 trillion has been lost in global […]

Fill it up, Joe, cause I can’t retire.

There are a few reasons why crude oil having a $20 handle is not beneficial to equity market and US investors. So while saving $2.00 on a fill up to pay for a cup of coffee seems Ok, the $2,000 you lost in your 401(k) is not. Look at why gas is so cheap. The […]

Fed vice chair Fischer tries to talk up inflation

Former Israeli central banker and now Vice Chair of the Federal Reserve Stanley Fischer was jawboning at Jackson Hole conference over the weekend, since Fed chief Janet Yellen did not attend. He believes the Fed is on track to raise rates this year, until it won’t be able too. He also said the Fed won’t […]