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 […]

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 […]

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 […]

Post-election market drama

Last Tuesday evening, while dining with family and business associates, I had one eye on the elections and the other on the Dow Jones Futures Index, a proxy for the Dow Jones Industrials (DJIA) in the non-trading hours. At one point, the futures were down 900 points, and I was drooling over the prospect of […]