Alhambra CEO Joe Calhoun gives his Mid-Year 2022 update on the financial markets; what's happened, surprises, and anomalies.
Note: This update is longer than usual but I felt a comprehensive review was necessary. The Federal Reserve panicked last week and spooked investors into the worst week for stocks since the onset of COVID in March 2020. The S&P 500 is now firmly in bear market territory but that is a fraction of the pain in stocks and other [...]
Be fearful when others are greedy and greedy when others are fearful. Warren Buffett People are always asking me where's the outlook good, but that's the wrong question. The right question is: Where is the outlook the most miserable? Sir John Templeton, The Principle of Maximum Pessimism I don't know if we're at the point of maximum pessimism yet but [...]
Dimon says brace for U.S. economic 'hurricane' due to inflation "It's a hurricane," Dimon told a banking conference, adding that the current situation is unprecedented. "Right now, it's kind of sunny, things are doing fine. Everyone thinks the Fed can handle this. That hurricane is right out there down the road coming our way. We just don't know if it's [...]
Stocks had a rip snorter of a rally last week and a lot of people are pondering the question in the title over this long weekend. The S&P 500 was down 20.9% from intraday high (4818.62, January 4th) to intraday low (3810.32, May 20th). From that intraday low the market has risen 9.1% in just six trading days. That still [...]
Inevitable adjective incapable of being avoided or evaded I heard that word a lot last week. There is now a fully formed consensus that the US, and indeed the world, now faces an inevitable recession. It can't be avoided. Central banks will have to keep hiking rates because that's the only way to kill inflation. Yes, the inflation is due [...]