Sold Small & Mid Cap Indexes 221119

Friday I sold the remainder of my Small and Mid Cap Indexes.  Markets have done extremely well over the past month, as investor sentiment is rising on hopes the Fed will pivot on raising interest rates and that China will ease its Zero Covid policy. Euphoric investors believe that the declining economic data will causeContinue reading “Sold Small & Mid Cap Indexes 221119”

Fed keeps raising the bar on restrictive rates 221103

Yesterday at the FOMC press conference Fed Chairman Jay Powell said, “The question of when to moderate the pace of increases is now much less important than the question of how high to raise rates and how long to keep monetary policy restrictive.” Of course the real question to investors is, how high can ratesContinue reading “Fed keeps raising the bar on restrictive rates 221103”

Anemic economy will shackle FED

The Stock Market has started out the year horribly, in fact, the worst ever.  The selloff is due to the double whammy of Omicron and fears about the Federal Reserve raising interest rates. Neither issues concern me.  Omicron is clearly dissipating (epicenter UK has lifted restrictions) and the FED can’t significantly raise interest rates becauseContinue reading “Anemic economy will shackle FED”

FED new policy…same as the old policy

I know it’s fashionable to be worried about the stock market.  I’m not. One of the main emotional drivers is that the Federal Reserve has tightened its monetary policy and that interest rates are going up. Attached is a chart of the FED Funds rate going back to 1954.  The RED line indicates estimated interestContinue reading “FED new policy…same as the old policy”

RUSSELL2000 dips below 200dma

For the first time in over a year, the RUSSELL 2000 (Small Cap Index) broke below its 200 day-moving-average.  The insolvency of Evergrande (China’s second largest real estate developer) is being blamed for the calamity, but I don’t think there will be a contagion.  China’s problems are much larger than Evergrande, and I believe theContinue reading “RUSSELL2000 dips below 200dma”