The global economy has faced many setbacks this year due to inflation, the war in Ukraine, China’s zero-Covid policy, and many other factors. Unlike the U.S. which largely rebounded from the pandemic, many countries have faced a tougher road to recovery. The effects of high energy prices and supply chain problems have only added to these difficulties. Still, there […]
Perhaps no sector of the economy has been impacted by rising interest rates as much as housing. The declines in both housing activity and prices have wide-ranging effects on households and the economy, as well as across financial markets. Like many other sectors, the housing market surged during the pandemic and is now experiencing a hangover. […]
November 23, 2022 2022 has been a historic year for financial markets and a challenging one for investors. With inflation rising at the fastest pace in over 40 years, both stocks and bonds fell into bear markets and reversed some of the strong gains made during the pandemic recovery. As we approach the end of the […]
All investors understand that markets operate in cycles. This is even more the case for technology stocks which depend not only on the underlying business cycle, but also experience waves of hype and exuberance. Benjamin Graham, often considered to be the father of value investing, famously stated that “in the short run the market is a voting machine but […]
November 9th Economic uncertainty continues to affect financial markets, as it rightfully should since, in the long run, stock prices follow trends in economic growth. Investors are wondering how high interest rates might rise, whether there will be a deep recession (or if we’re in one already), when inflation might begin to recede, if unemployment will tick […]
Major stock market indices have rebounded in October as investors hope for a slowdown in the pace of Fed rate hikes. As of Friday, October 28, the S&P 500 had gained 8.8% over the month and its year-to-date loss was cut to 18%, just slightly better than bear market levels. The Dow is now above correction territory with […]
It’s no secret that this year has been characterized by market and economic uncertainty due to inflation, the Fed, geopolitics, and more. Market unease has been prolonged by the fact that these economic effects take time to evolve. Inflation is not an overnight event but the result of supply and demand factors since 2020, compounded by monetary […]
The latest inflation numbers confirm that the prices of everyday goods and services are still rising despite Fed rate hikes and a slowing economy. Major stock market indices continue to be in or near bear market levels with the S&P 500 down 25% year-to-date, while interest rates jumped further last week with the 10-year Treasury yield […]
U.S. midterm elections take place on November 8 amid significant market, economic and geopolitical uncertainty. Inflation continues to be a top issue for voters and while some prices such as those for gasoline have improved, price pressures remain the highest in 40 years. Major stock market indices are also still in bear market territory which […]
Global markets pulled back again last week following the Fed’s announcement that it would tighten by another 75 basis points and keep rates higher for longer. Major indices are back to their June bear market lows with the S&P 500 falling 23% year-to-date and the Nasdaq down 31%. Bonds have also struggled as all interest rates across […]