After one of the strongest Augusts on record, investors continue to shake their collective heads. How can a market be doing so well when the COVID economy is in recession? As we discussed in our previous letters, the Federal Reserve’s monetary support and the fiscal stimulus provided by the Congress and Administration have generated the…

Twice in the past month, the bears took the S&P500 down to the 200-day moving average but both times failed to break the market lower. The buyers came in and bounced the S&P500 back up to 3130. This is about where stocks are now.

The stock market had a big up week as an economy that is re-opening, hopes for a vaccine, and the fear of missing the rebound motivated investors to buy. While the initial rally off the March low was led by social media stocks, the FAANGs, and technology, the past two weeks have seen a broadening…

The stock market is caught in a tug-of-war between very bad economic data and a tremendous amount of fiscal and monetary stimulus. At his recent press conference, Federal Reserve Chairman Powell reiterated his “whatever it takes” position.

From its high on February 19 to its recent low on March 23rd the S&P500 dropped 35.6%. Not only was the decline of significant magnitude, but the speed of the fall was also the fastest since the 1987 Crash.

First, before any commentary, it is important that, while this newsletter deals with dollars and cents when discussing global crises, we keep in our minds and hearts the human cost, difficulties, and sometimes tragedies that go along with events. Coronavirus infection rate will continue to rise We are not experts in health or politics. We…

Coronavirus stalls the market’s upward bias After a strong run-up to the end of 2019, the market began in 2020 with an upward bias. This, unfortunately, stalled as the Coronavirus began to spread in China. In response to the contagion, China has sealed off cities, and transport to and from China has been reduced. The…

As we look back on 2019, the headlines were terrible. “Trade Wars”, “Impeachment”, “Iran”, “Brexit” and “China” dominated the news cycle. Add to this the cacophony of pundits talking about “recession” and it is no wonder that investors pulled $135.5 billion out of equity mutual funds and ETFs during the year. It has been the largest…

It’s hard to believe 3/4 of 2019 is already in the books. The lingering trade war with China and the prospect of more trade wars with Europe and any other comers has created uncertainty in corporate boardrooms and with investors. As a result, the US economy has not been able to sustain the momentum it…

We are back from the summer and the stock market is, despite some big up and down days, pretty much at the level where it began the summer. The bond market is a different story The bond market is a different story, interest rates in the US and Europe steadily declined throughout July and August.…