ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Will deregulation and tax cuts far outweigh the economic damage of broad-based and global tariffs, chaos in the Federal government, and an assortment of other economic and policy uncertainties? This question rides high on the minds of traders and investors. Where you fall on this question might determine how worried you are about the current … Read more
Brutal Failure Turkish President Recep Tayyip Erdoğan’s “war of economic independence” has ended in a brutal failure. The president used his central bank to fight inflation with rate cuts and lost in spectacular fashion. This experiment with unconventional monetary policy severely devalued the Turkish lira (USD/TRY) and helped to generate massive inflationary pressures. The chart below … Read more
Stock Market Commentary: On a weekly basis, the stock market seems to flip its abiding theme. One week after I accused the stock market of sleepwalking, buyers roused the major indices out of their slumber with a new and sudden display of strength. A 13.9% post-earnings surge from Meta Platforms, Inc (META) seemed to set … Read more
With the power change in the U.S. House of Representatives, 2023 will be another year of drama over the U.S.’s debt ceiling. Treasury Secretary Janet Yellen recently brought the looming debt drama to the forefront of economic headlines by delivering the obligatory warning about the risk of default if Congress does not increase the debt … Read more
Housing Market Intro and Summary In my last Housing Market Review, I described the dynamics of a housing market trying to wait out this cycle of rising rates. Since then, ever higher mortgage rates continued their relentless and sharp uptrend. Accordingly, the pressures on the housing market simply increased further. The marks of a deepening … Read more