ONE-TWENTY TWO: Trading Financial Markets
Exploring the poetry in financial markets for students of money and economy since the year 2000.
Two recent studies from the Federal Reserve say a lot about its core concerns for inflation. These studies were released back-to-back just one week following Fed Chair Jerome Powell confirming the new religion at the Fed for (aggressively) fighting inflation. Researchers at the St. Louis Federal Reserve identified housing services (aka rents) as a core … Read more
Housing Market Intro and Summary An aggressively hawkish Federal Reserve has changed the game for the housing market. After falling behind the curve and failing to start the rate hike cycle last year, America’s central bank is now desperately scrambling to catch up without causing a recession. The housing market is ground zero for the … Read more
Housing Market Intro and Summary In my last Housing Market Review, I discussed the prospects for the impact of higher interest rates. I concluded there could be little impact on prices. Those dynamics could soon be overshadowed by the impacts of a global economic war and the declining sentiment that comes from watching the misery … Read more
Housing Market Intro and Summary A hawkish Federal Reserve has changed the game for the housing market. At first, I thought the normalization in monetary policy would generate a “settling in” for the housing market. However with inventories tight, a scarcity in available labor, rising material costs, and a dysfunctional supply chain, higher rates may … Read more
Stock Market Commentary The stock market indices benefited from a strong 2021. year. However, under the surface, declining market breadth betrayed the bullish narrative for a wide swath of stocks. A disappointing start to the new year for the indices was even worse for those stocks already limping into the end of last year. The … Read more