Last week the Federal Reserve announced the details of what is now being called Quantitative Tightening (QT). Despite this being well-telegraphed (as have been most moves out of Janet Yellen’s Fed) the bond market reacted sharp……for a few days. Things have settled back down. Yields
We’ve had an internal debate in our offices about stock market sentiment. We are not necessarily seeing euphoria when we speak to clients about the market, but we are seeing overwhelming confidence is extremely unlikely. The ability of the Fed to mask the underlying weakness in the economy
I rarely do this, but I’m going to encourage our readers to take some time to read an article by one of our competitors (more on that later). I’ve been reading John Mauldin since a client directed me to his weekly e-mail letter in early 2000.
I find it interesting despite all the letters behind their names, including PhD, how many Fed officials and other economic leaders fail to realize the value of allowing cycles to occur. The purpose of a recession or market correction is to wipe out the excesses that are inevitably created whenever
Following the election we saw a sharp improvement in “soft” economic data. Most of this data was centered around surveys about how consumers, business owners, and manufacturers “felt” about the economic prospects of the economy. At the time I warned the key would be how quickly
