The Fed meets this week and is widely expected to raise the Fed Funds rate by 0.25% to a range of 4.5% - 4.75%. The market has factored in a small probability that they do nothing and leave rates alone, but they'll probably do what's expected because they've spent the last couple of months preparing the markets for exactly this [...]
Inflation* in the US is falling rapidly with the CPI rising just 0.9% in the second half of 2022 versus 5.4% in the first six months. Existing home sales are down 14.6% in the last 3 months and 34% over the last year. Housing starts are down 22% and permits are down 30% year-over-year. Orders for durable goods are down [...]
The inflation report last week was met with a big sigh of relief by investors. Stocks and bonds rallied as the Fed's Whip Inflation Now project seems to be finally bearing some fruit. In reality, inflation peaked months ago but the Fed hadn't really caught on yet - they're a little slow - and the market has been fearing that [...]
What's your outlook for this year? I've heard that question repeatedly over the last month and if you're reading this hoping I'll let you have a peek at my crystal ball, you're going to be disappointed. Because I don't have a crystal ball and neither, I hasten to add, does anyone else in this business. So, no, I don't know [...]
We received a host of economics reports this past week; some good, others not so much. The week started with the Consumer Price Index report coming in better than expected at an increase of just 0.1% from the previous month (7.1% from a year ago), compared with respective estimates of 0.3% and 7.3%. This is great news (and the market [...]
Note: This will be my last full commentary for 2022. I will spend the month of December on research for next year, visiting with family, and taking some much-needed time off. I will still be watching markets, as will all the other members of the Alhambra team and if something happens which requires me to communicate, I'll certainly do that. [...]
International events and a strong U.S. dollar and not decimating foreign markets as you would expect. And things look even better if viewed through the lens of local currencies. Alhambra CEO Joe Calhoun breaks down the Currency Illusion.
Is the US economy on the verge of recession? Is it already in recession? We have several indications that the US economy is slowing and at least one that points to recession soon and maybe now. From the Conference Board's release of its Leading Economic Indicators last week: “The US LEI fell for an eighth consecutive month, suggesting the economy [...]
Is recession coming? When? Can we tell? Steve Brennan and Alhambra CEO Joe Calhoun look at specific language from Jerome Powell, if there will be a soft landing, and whether a peak in interest rates gives any indication about the timing of a recession.
One thing I can tell you for certain about last week's big rally on Thursday and Friday: there were a lot of people who desperately wanted a good excuse to buy stocks. And buy they did after a better-than-expected CPI report Thursday morning, pushing the S&P 500 up nearly 6% on the week with all of that coming on Thursday [...]
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