The S&P 500 finished July up 9.21% for the month. That is still below where it closed for the month of May. So, even though it was a good month, 9.21% was not enough to recover all of what it lost by being down 8.64% in June…
Market Commentary
Market Commentary
“Charlatans are recognizable in that they will give you positive advice, and only positive advice, exploiting our gullibility and sucker-proneness… Yet in practice it is the negative that’s used by the pros, those selected by evolution… people become rich by not going bust (particularly when others do).”
Market Commentary
Market Commentary
The FED has painted itself (and our country) into a corner. Either they tighten (raise rates) monetary policy into a slowing economy (GDP and CPI) which will make a recession worse, probably leading to massive unemployment and social unrest. Or, they act to save the stock market by easing monetary policy (cutting rates or printing money to buy more bonds) and leading to ever higher inflation.
All I can say is this: don’t count on the FED to deliver magical outcomes.
Market Commentary
At Elevate, we aren’t afraid to take some money out of the market when we hit a predefined stop loss. It is vital to define how much you are willing to lose on a position before you enter it. When the market starts to drop and money is being lost, humans become emotional and make poor decisions. But that is where the opportunity lies…
Market Commentary
Despite the strong two-day rally to finish the month, January was the worst start to the year for the Nasdaq (down 19% peak to trough) since 2008. And if not for that two-day rally, it would have been the worst start for the Nasdaq ever – and ever, as they say, is a very long time. As a result, you might have thought that the decline would have made some progress in normalizing valuations, but you would have been wrong…
Monthly Commentary
Monthly Commentary
I wonder if Chairman (of the Federal Reserve Bank) Jerome Powell, reads my commentary. It wasn’t long after last month’s note that Mr. Powell changed his tune on inflation being “transitory” and shifted his stance toward “tapering” the central bank’s bond purchasing program faster than planned…
Monthly Commentary
…prices were spiraling upward, almost out of control.
A vicious cycle was underway: Because prices had been rising rapidly in the recent past, workers demanded ever-higher wages.
As the nation’s central bank, the Federal Reserve was the agency best positioned to try to end that demoralizing cycle, but it would exact a cost…