Stocks Recover with Santa Claus Rally

While the declines lasted into Monday, stocks rose the remaining three days of this holiday shortened week with all major indices ending with substantial gains.  The economic data came in mixed with strong housing numbers but weak inflation adjusted consumer spending and income. Treasury yields rose with the 30-year bond yield closing at 1.908% and […]

Central Bank’s Strike Back Against Inflation

Central banks across the world met this week and most focused on an end to monetary stimulus and to fighting inflation: The Federal Reserve announced it would accelerate tapering of bond purchases with the goal to conclude them by the end of March.  The FED also predicted three rate hikes in 2022. The Bank of […]

Stocks Stage Strong Comeback

Despite inflation fears, the markets staged a strong comeback this week with the S&P 500 index posting the biggest gains.  The consumer-price index hit 6.8% in November, the highest since 1982. October saw a sharp decrease in the trade deficit due to surging exports of energy and agricultural goods that more than offset the increase […]

Stocks End a Wild Week Lower

U.S. stock indices ended a volatile week substantially lower, as fears over the Omicron variant and a possible acceleration of the FED’s taper outweighed continued growth. Fed Chairman Powell, in testimony before Congress, warned that the Omicron variant could worsen the supply chain supply chain bottlenecks and inflation.  He also admitted that inflation may not […]

Stocks Fall Over Fear of New Variant

Dear Erik, Stocks sold off sharply on Friday as a new variant of the Covid virus, much more mutated than previous variants, was discovered in South Africa prompting travel restrictions throughout the world.  For the week, stock indices ended significantly lower. The U.S., in coordination with China, India, Japan, South Korea and the U.K., announced […]