The 106 year old Federal Reserve Bank of the US controls monetary policy to influence economic conditions, primarily by moving short term bank borrowing rates and bank reserves. Surveys predict 100% confidence in a Federal Reserve Rate cut on September 18th and high odds of another cut before year end….
Future economic expectations are strong drivers of both Oil prices and the Stock Market. A slowing economy portends lower demand for Oil and reduced earnings for stocks. While Oil doesn’t always lead the stock market, they are highly correlated and if Oil breaks below multi-month support it will be a warning…
Another Trump overture to Chinese technology giant Huawei to help US companies along with the proposed German and Chinese plans for stimulus have helped the stock market rebound sharply the past 3 days. As much as Trump wants to tighten the screws on China to coerce a trade deal, US and…
The Inverted Yield Curve with short term rates above long rates has been one of the most anticipated over hyped harbingers of doom and gloom in history. For over a year Bearish forecasters sounded the alarm bells of a coming contraction as the Yield inversion approached, even though histrionically this is one of the best…
US stocks continue to outpace world markets despite increasing evidence of a US economic slowdown and weak corporate earnings. Equities are heavily influenced by expectations of future business earnings, yet stocks remain elevated in part due to the high confidence in aggressive rate cutting by our Central Bank that is…
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