About That Inflation Problem image

About That Inflation Problem

For those of you keeping score at home, it was the inflation data that dominated the stock market game last week. While the numbers were eye-popping, the market reaction was not. And the narrative around the subject appears to be evenly split between the two teams on the field. In…
What's Next? image

What's Next?

Stocks didn't make much progress again last week and appear to remain trapped in a consolidation phase. While the S&P 500 did manage to eke out a gain, none of the major indices were able to break out of their respective trading ranges. The sideways action seems to be driven b…
New Information image

New Information

Last week, we looked at three key issues that the stock market seemed to be struggling with: (1) The possibility of the Fed "tapering" their bond-buying program earlier than expected, (2) the potential for inflation to become ingrained (aka non-transitory), and (3) the unavoidable slowdow…
Three Issues Markets Are Working Through image

Three Issues Markets Are Working Through

The DJIA and S&P 500 have been moving sideways for much of the past month, while the consolidation action in small-caps and the NASDAQ 100 has been going on even longer. Concerns over inflation, and in turn, the Fed's response - as in how soon Powell & Co would begin "tapering" th…
A Chart That Makes Me Say, Wow! image

A Chart That Makes Me Say, Wow!

While almost everyone is still talking about Friday's jobs report and whether or not inflation is here to stay, I'd like to use my pixels to talk about something else on this cold and rainy/snowy Monday morning in Colorado. You see, when doing my review of news, charts, and models, over t…
What Could Go Wrong? image

What Could Go Wrong?

My friend/colleague Mr. Jeff Pietsch, CFA, and I were asked last week to offer our thoughts on the reasons why the U.S. stock market could experience a correction in the coming weeks/months ahead. It was a good exercise as it is a really good idea to look at the game from both t…
Is Sideways The New Down? image

Is Sideways The New Down?

The State of the Market Stocks moved largely sideways last week in response to what appears to be conflicting narratives. But then again, given the overbought nature of the market and the overexuberant levels of sentiment, sideways beats the alternative. T…
Drivers and Models Remain Constructive image

Drivers and Models Remain Constructive

The State of the Market I'm on the road, so I'll be keeping my thoughts on the market brief for the next two weeks. From my seat, the key drivers to the current upward trend in the stock market include the expectations for the economy to "boom" in the coming quart…
A Goldilocks Moment? image

A Goldilocks Moment?

The State of the Market Jamie Dimon attracted a lot of attention last week with his summary of the current economic/market environment. In his highly anticipated annual shareholder letter, the JPMorgan Chase (JPM) CEO wrote that we are looking at a "Goldilocks mom…
All Good News, But... image

All Good News, But...

The State of the Market Although the exchanges were shut on Friday, yet another important economic indicator came in well above expectations. In case you were otherwise occupied, it is worth noting that nonfarm payrolls accelerated in March by 916,000, which was w…