The Verdict

The Verdict Last week we mentioned the Wall Street adage ‘buy the rumor, sell the news’ and wondered how markets would react to the first rate cut. The answer still isn’t clear. On Wednesday, the market swung wildly right after the 50 bps rate cut was announced. That is typical right after a Fed announcement, […]
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Here We Go Again

Here We Go Again It was just a month ago when weak nonfarm payroll data was released and markets swooned. It wasn’t the only reason; the unwind of the Yen carry trade also had an impact, but the nonfarm payrolls (NFP) number rekindled growth concerns, albeit briefly. Since then Fed Chair Powell has shifted the […]
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Turning Point

Turning Point In Friday’s speech at the Jackson Hole Economic Symposium, Fed Chair Powell confirmed what the stock market has been anticipating – it is time to adjust monetary policy, that is, lower interest rates. By the time the first cut is made in September, it will have been almost a year since the Fed […]
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Sudden Impact

Sudden Impact The past month has been a period of “sudden impacts”, both politically and economically. Over the next several months, both should reach some resolution. Politics and Markets Everyone has their opinion of the political situation in the US, most of which are not especially positive. We always try to avoid politics, but the […]
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What, Me Worry?

What, Me Worry? The Federal Open Market Committee (FOMC) held their meeting this week and as usual, it created some wild swings on Wall Street. What caused the ruckus this time was a market that had been leaning toward fewer and fewer rates cuts and some early chatter about maybe the next move had to […]
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Tug of War

Tug of War The stock market rally continued this week, but in between there was a lot of up and down action. The S&P 500 Index fell 1.6% on Wednesday, but still managed to gain 1.4% for the week as the market eventually managed to ignore the Fed’s rate cut delay. The yield on the […]
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And the Winner Is…

And the Winner Is… I read an interesting article on Morningstar that compares Cisco and NVIDIA, asking if Cisco’s fall from grace will be repeated by NVIDIA. The simple answer is – Yes, of course it will. The difficult question is when that will happen. Back at the peak of the internet bubble, as we transitioned […]
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