04-APRIL 08-2021

Good morning. The Federal Reserve continues to sound optimistic, at least according to its headline meeting minutes.  But a number of officials are worried about stability risks.  That’s certainly an issue. With the money supply up at a record rate in the past year, it’s easy to see why some fear an unusual amount of […]

04-APRIL 01-2021

Good morning. The Biden Administration finally unveiled its $2 trillion infrastructure plan.  With generous provisions for public transit, light rail, and electric vehicles, nearly every company in the S&P 500 stands to benefit from the higher spending, whether directly or indirectly. However… someone’s got to pay for it.  And the tax hikes proposed will fall […]

03-MARCH 25-2021

Good morning. Both Fed Chairman Jerome Powell and Treasury Secretary Janet Yellen testified before the Senate this week.  Both of them generally told the same story – that the economy was recovering, but still needed some additional measures to stay the course. Where did the stories converge?  Mostly on policy issues going forward.  The Fed […]

03-MARCH 18-2021

Good morning. Stocks jumped higher yesterday afternoon as the Federal Reserve kept interest rates at zero and kept in accommodating language in its statement.  Traders now expect the bank to refrain from raising interest rates into 2023. While that’s what markets wanted to hear, it does run the risk of overstimulating the economy in the […]

03-MARCH 11-2021

Good morning. Shares of GameStop (GME) topped $300 once again in trading yesterday, although they also dropped to a low of $175 in volatile intraday trading.  The price has been creeping higher in recent days, but without the dizzying speed of the first squeeze. The company has a lot of potential avenues to end the […]

03-MARCH 04-2021

Good morning. One of the most popular sectors of the markets lately has been SPACs.  That’s short for special purpose acquisition companies.  That’s a fancy, Wall Street way of describing what has also been known as a “blank check” company. It works like this: The SPAC goes public, then uses the cash from the proceeds […]

02-FEBRUARY 25-2021

Good morning. For years, financial advisors have told investors to hold on tight when markets are dropping – and when possible to add when things are down.  Market fears can sometimes be short-lived, even when valuations and other reasons for fear persist. That appears to be the case with the latest weakness in the tech […]