Two words – “The Fed.” The two primary goals of the Federal Reserve’s Quantitative Easing efforts over the past few years were to inflate asset prices (stocks, real estate, etc.) and lower interest rates. They call this the “wealth effect.” In theory, they think that higher asset prices will increase confidence, which will increase spending, business…
I wrote in my letter to clients earlier this year that the only thing I’m certain about in the markets moving forward is that volatility will be higher than the past few years. As we move further down the path of currency wars and central bank policy divergences, there are some large risks looming overhead…
When we look back, I believe history will say the seeds of the next crisis were planted in the fall of 2014. I thought it was going to be Europe that started the party, but instead Japan raised their hand and volunteered by starting the world’s next currency war – although you’ll never hear a…
Volatility and the monthly high-to-low range of the S&P 500 has been shrinking the past 3 months to the point that it’s becoming “compressed” and due to breakout. Volatility looks poised to pick-up in the very near future. Companies continue to increase Merger & Acquisition (M&A) activity and stock buybacks. Both are signals that management…