Image Source: Pixabay The Dow finally has company – the much broader S&P 500 has joined it at the all-time high party. If you sense something missing from this picture, you’re not wrong…I’m concerned that the Nasdaq hasn’t notched highs this month. Of course, that’s the home of tech in the market, and tech stocks typically react well to rate cuts. We’ll get a cut tomorrow, though whether it’s 25 or 50 basis points will be a surprise until the end.Gold and silver continue to look strong and there’s a bid under crypto, too. Crude oil may be having a “moment,” as well, as it tries to complete a bottom.I’ll walk ...
Image Source: Unsplash The Federal Reserve will almost certainly lower interest rates tomorrow – even though I argued vehemently against it last week. (Like my children, the Fed will probably ignore my sage advice.)So, if we do enter a rate-cutting environment, what stocks are likely to do well?Here are the top three sectors I expect to outperform during this new era. 1. Real Estate Investment Trusts Real estate investment trusts, or REITs, are companies that buy real estate properties and rent them out to tenants. But these businesses don’t just buy houses or offices. They also own retail centers, healthcare facilities… even shelf spa...
Stocks rallied early off the Retail Sales Numbers this morning being bullish this morning.But alas, they were not, despite what the spokesmodels said.And so stocks gave up their gains and finished pretty much unchanged.All eyes are on the FOMC tomorrow.The Dollar gained back a bit, just shy of the 101 handle.Gold and silver gave back a little bit of their recent gains.Option expiration for stocks on Friday.Have a pleasant evening. More By This Author:Stocks And Precious Metals Charts – Sliding Contentedly Into The Abyss Stocks And Precious Metals Charts – Storm WarningStocks And Precious Metals Charts – A Disturbance In Th...
With the industrial production release today (+0.8% vs. +0.2% m/m consensus), we have the following picture of key series followed by the NBER’s BCDC:Figure 1: Nonfarm Payroll (NFP) employment from CES (bold dark blue), Bloomberg consensus of 9/6 for NFP (blue +), implied NFP from preliminary benchmark (blue), civilian employment (orange), industrial production (red), personal income excluding current transfers in Ch.2017$ (bold green), manufacturing and trade sales in Ch.2017$ (black), consumption in Ch.2017$ (light blue), and monthly GDP in Ch.2017$ (pink), GDP (blue bars), all log normalized to 2023M04=0. Source: BLS via FRED, Federal R...
The Dow erased its triple-digit midday lead to snap a four-day win streak on Tuesday, while the S&P 500 managed to secure a narrow seventh-straight gain after both indexes nabbed record highs earlier. The Nasdaq also gave back most of its gains but settled higher after better-than-expected retail sales data for August. Traders are eyeing the conclusion of the Federal Reserve’s meeting tomorrow, with the majority now expecting a 50-basis point interest rate cut, per CME Group’s FedWatch tool. Oil Edges Higher as Gold Takes Breather Oil prices rose on Tuesday amid escalating tensions in the Middle East that may disrupt crude p...
The headlines are amusing. It’s easy to spin this however you want.Industrial Production Percent Change Month-Over-Month Industrial Production Index Since 1972 The manufacturing index peaked at 106.44 in December of 2007.Recession watchers please note the Great Recession started one month after the peak. Manufacturing is still 5.9 percent below that high.Industrial Production Index Since 2022 Manufacturing this cycle peaked at 101.02 in October of 2022.Industrial Production and Manufacturing Production Percent Change Year-Over-Year Manufacturing durable goods are durable goods used in manufacturing, not consumer durable goods like appliance...
Image Source: Pexels Alhambra CEO Joe Calhoun says the Conference Board’s leading economic indicators are not working as recession indicators.Video Length: 00:11:54More By This Author:Predicting The Federal Reserve Election Impact on the EconomyWeekly Recap And DARP Update – Saturday, Sept. 14...
Image Source: Pixabay With rate cuts likely coming this week, and continuing into the foreseeable future, three iShares ETFs stand to benefit the most.Investors are expecting the Federal Open Market Committee (FOMC) to cut interest rates this week when it meets September 17 and 18.While there is some debate about whether it will be a 50-basis point or 25-basis point cut, the longer-term view is that there will be multiple rate cuts through 2026.According to the Fed’s latest Summary of Projections, or dot plot, the federal funds rate will be 4.75% to 5% at the end of 2024, 4% to 4.25% by the end of 2025, and 3% to 3.25% by the end of 202...
Image Source: Unsplash Global money supply has soared by $20.6 trillion since 2019, according to Bloomberg.Additionally, global debt surged by over $15 trillion in 2023, reaching a new record high of $313 trillion. Around 55% of this rise came from developed economies, mainly the U.S., France, and Germany. Unfunded liabilities in the United States amount to $72 trillion, almost 300% of GDP. This may seem high until you look at Spain with 500% of GDP, France with close to 400%, or Germany with close to 350% of GDP.There is no escape from debt. Paying for the government’s fictitious promises in paper money will result in a constantly deprec...
Image Source: Unsplash As we approach the U.S. presidential election, we’re hearing about new economic ideas from both candidates. One of the latest ideas from Trump’s side is that if he is elected, he wants to place a 100% tariff on any country that is de-dollarizing.Video Length: 00:26:07More By This Author:The Signs Are Clear, We Are Closing In On The End Game Low-Cost Silver Producer Says True Cost Already Over $25 Per OunceWill Gold Drop Again In September This Year?...