The Economy is Softening; the Fed is Already Behind the Curve

As seen from the table, the equity markets were flat for the week. Perhaps markets have begun to pay attention to incoming economic data. Looking beyond the weekly data, it is quite clear from the year-to-date numbers that small cap stocks (Russell 2000) and industrials (DJIA) have not participated much in the market run-up. The […]

Despite Fed Hawkishness  Recent Inflation Data Give Markets Hope

The financial markets were “mixed” this week (ended June 14) with the tech sectors moving smartly ahead while the more traditional sectors lagged. The S&P 500 (+1.6%) and the Nasdaq (+3.0%) both closed higher. But the industrial stocks were flat to down as represented by the Dow Jones Industrials which were off -0.8% for the […]

A Strapped Consumer = A Slowing Economy

Rampant CRE Foreclosures Portend Something More Sinister Financial markets closed the week mixed with the Nasdaq rising +1.4% and closing at a record high thanks to the huge Nvidia beat on both top and bottom lines. The S&P 500 was flat on the week (+0.3%) while the Dow Jones, with its 606-point (-1.5%) dive on […]

A Slower Economy, Lower Inflation The Odds of a June Rate Cut Are Significant

During the last week in March, there were several significant foreclosures (hundreds of millions of dollars per property). They included properties in SanFrancisco and Mountain View, CA, a large complex in Washingdon, D.C., and a medical office building (still under construction) in the southern part of Florida.   Leveraged loan delinquencies now exceed 6% (normal is […]