The narrative surrounding inflation, or “reflation” as I recognize it to be, is pretty compelling. The financial media does a stand-up job of driving a fearful story that introduces many negative consequences from inflationary prices. History suggests that such fears are, indeed, overblown and generally only produce momentary equity market consequences. So before you get…
Research Report Excerpt #1 Are we on the cusp of another double-digit Nasdaq correction? Anything is possible, and since reaching it’s new all-time high on 4/29/2021 of 14,211, the growth and tech-heavy Nasdaq has once again come under pressure, even with bond yields under pressure. From the Nasdaq high to the most recent low, the…
Research Report Excerpt #1 Speaking of Friday’s pullback, Finom Group has identified what may have caused or catalyzed Friday’s downturn, the biggest Permanent Open Market Operation (POMO) of the Fed’s bi-weekly calendar cycle. This is what is commonly known as the Fed’s Quantitative Easing operation for which every 2 weeks the Fed is buying assets…
Research Report Excerpt #1 Which sector will lead the longer-term trend? Sector and style rotation has remained a dominant theme in 2021, but investors shouldn’t get too bogged down by this debate, missing the forest for the trees. It’s this constant style and sector rotation, this leadership and laggard-ship that may be making it that…
A boom or bust for the economy and markets? Risky assets will continue to benefit Our top 10 takeaways follow: 1. US growth is entering a boom period with positive spillovers. J.P. Morgan’s Economics Research team estimates US growth will reach 9.5% in 2Q and 8.3% in 3Q before trending down to 6.3% for the…
Research Report Excerpt #1 At the industry level, since the end of March, here is what the healthy rotation has looked like: If there has been a lesson the market has aimed to teach and inform newer investors since the election period last year it is that rotations are the sign of a healthy bull…
Research Report Excerpt #1 The typical April return has been good, but not great. Over the past 10 years, April has been only the eighth-strongest month of the year, with a 0.9% median SPX return. Since 1991, though, the median April return has been 1.3%—the fifth-best month of the year:1 Research Report Excerpt #2…
Research Report Insight #1 Good stuff Edward and I urge our readers to review what Edward offered about TIME/DURATION and pair it with the following data: We’ve been chatting up the Facebook (FB) chart with Finom Group members in the Trading Room over the past couple of weeks. I’ve posted several charts recently on Twitter,…
It’s never easy, is it? As an active portfolio manager, trader or investor, it seems as though once we move beyond one obstacle, one fearful market narrative there is another one right around the corner if not immediately following the last fearful narrative. What could tip the scales from a bullish trend to a bearish…
Over the last couple of weeks, we have made adjustments to guidance and targets in a number of different asset classes including equities and fixed income. We meaningfully increased our expectations for economic growth here at home and also adjusted upward projections for multiple global regions and overall world growth. That was the foundation on…
