Equity Markets Chill as the Economy Softens

The equity market ended the week on a sour note. For the Friday session alone, the Dow Jones Average fell more than -370 points (-0.93%), the Nasdaq nearly -150 (-0.81%), while the S&P500 lost -40 points (-0.71%).  The standout number in the table below is the performance of the Russell 2000 as market sentiment shifted […]

A Weakening Consumer and Other Signs of Economic Stress

Equity markets were subdued this week with the S&P500 and Nasdaq held at bay by a break in the upsurge in the price of Nvidia (NVDA) which, on Thursday and Friday (June 20 and 21) gave back about -6.6% in its price (but still up 155% year to date!). The table shows the results of […]

Employment Numbers Mislead, the Coming Banking Crisis, and Why Inflation Will Moderate

For most of last week (ending April 5th), financial markets were worried about the upcoming employment report, and when markets fret, the indexes languish. But after Friday morning’s “strong” (on the surface) employment report, those markets breathed a sigh of relief and reversed a major portion of the week’s losses. Still, the week ended showing […]

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 […]