A Case for the Consumer Last week, the equity markets rose supported by mounting evidence of disinflation and solid results from JPMorgan Chase & Co (JPM) and other large banks. The gains were muted by the release of the Fed’s March FOMC minutes on Wednesday and...
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Transitory Bears
New Vaccine Mandates The definitions of “transitory” found on the internet range from “of brief duration” to “not permanent.” We believe that the two major economic challenges of inflation and COVID-19 will not be brief or permanent, so perhaps somewhere in the middle...
Too Much Good News
Last Week: We were often reminded during the recent challenging economic period that the market climbs the wall of worry. The inverse proposition might caution that the market can slide down the chute of good cheer. Following up on our most recent commentary, the...
Arc of Modest Optimism
Last Week: Where are we and where do we go from here? Reflecting on the current status of the economy and markets, I find myself swaying back and forth on the optimism/pessimism pendulum. Although on balance trending more towards the arc of optimism. Certain data...
Rally, Rinse, Repeat
Last Week: In the Kuby’s Commentary version of “Rally, Rinse, Repeat,” we once again report that the market set new record highs, the economic data was mixed, the battle with COVID-19 raged on, and the politicians were mired in debate over the size and scope of...
The Bulls are Back
Last Week: The Bulls are back, and I am not talking about the Chicago Bulls. The stock market rebounded from its brief slump to post its best weekly gains since November, with the S&P 500 bouncing 4.65%. Small cap stocks continued their recent surge, as the...
What a Week
Last Week: Cheers! The Wall Street party raged on as the S&P 500 rose 1.8%, to 3824.68, Nasdaq Composite gained 2.4%, and the Russell 2000 surged 5.9%. It was the best start to a year for small caps since 1987 (causing a party on North Star Street). On the other...
Long Strange Year
Last Week: Welcome to the last week of 2020. One might say it done come and gone, and my oh my what a long strange trip it has been indeed. The fiscal stimulus saga, which first grabbed headlines in June, took another twist as Congress finally passed a $900 billion...
Volatility Spike Three-Peat
Markets: It was the worst week in the market since March, with the S&P 500 sinking 5.6% and small caps faring even worse shedding 6.22%. Volatility surged with the VIX spiking 38% to match its highest level since June. The chart below shows the percentage changes...
Surprise, Surprise, Surprise
Last Week: Here is how we wrapped up our previous commentary: “Politics will become an even more dominant verse, with the first presidential debate being held on Tuesday in Cleveland. The most important economic release will come on Friday when The Bureau of Labor...
As the Clock Turns
Last Week: Hot tech IPOs and renewed optimism on the development of COVID-19 vaccines provided a springboard for a rally in the markets on Monday and Tuesday, but Wednesday afternoon’s FOMC meeting poked the bears back into action. The Nasdaq 100 sank as much as 2.8%...
30 for 30 Optimism
Last Week: The S&P 500 gained 0.64% to finish at 3372.85, just fractionally below the record close of 3386.15 set on February 19 of this year. It briefly reached an all-time intra-day high Wednesday, before dipping lower later in the afternoon. Both the bond...
Be Careful Out There
Last Week: We concluded our June 8th commentary with “Perhaps the glass is half full?” noting the surprising strong jobs report and the 43% bounce in the S&P 500 from its March 23 lows. On Monday the S&P 500 broke even for the year, and the Nasdaq Composite...
Market Showing Signs of Fever
Last Week: The good news of corporate earnings for the fourth quarter of 2019 exceeding forecasts was overshadowed by concerns over the impact of the coronavirus on future earnings. Estimates of first quarter earnings growth have been slashed approximately in half so...
Rally Interrupted
Last Week: The stock market party was disrupted as the Coronavirus upset the apple cart. Corporate earnings reports were strong and interest rates moved lower, but the S&P 500 declined 1.03% and the Russell 2000 fell 2.2%. It was the biggest one-week drop in the...
Dream Week for Value Stocks
Last Week: Treasury yields rose sharply during the week after signs that U.S. consumer spending remained strong and on receding trade tensions between the U.S. and China. Additionally, both the CPI and PPI showed some signs of inflation. The “Crowd” got caught all-in...
It’s a Mad Mad Mad Inversion
Last Week: The last six months have certainly been “interesting”. A dramatic rally in January and February recovered about most of the horrific losses of October- December, followed by a brief nasty sell-off to kick off March which quickly reversed into a Mad March...
Pessimism
Last Week: Pessimism has taken root, as the impact of the “trade war” on global economies has become manifest. In a sporting contest there is usually a winner and a loser. You strategize to beat your opponent. Global trade is not a sporting contest. Quite to the...
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