Macroeconomics

Is the Federal Reserve Masking Inflation with Higher Oil Prices?

Oil prices remain a large driving force in determining where the US stock markets want to go. As soon as we hit our $66 target zone we got hit in all directions with events. The Suez Canal blockage being the most talked about. Inflation is a term used a lot, so let me introduce you to another way to look at inflation. Let’s go down the rabbit hole together.

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Markets

Stock Market Crash? US Small Caps Bull Run could be Over!

A Stock Market Crash? The Russell 2000 fits that bill, and is hinting to the end of its bull run. The real stories of the week have to do with the commodity and currency markets. Oil is what everyone is talking about, but the Dollar run is of much importance. Especially seeing both the Dollar and Gold move up together!

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Federal Reserve

All Eyes on the Federal Reserve: Jerome Powell to Make or Break Stock Markets

The Stock Markets are under pressure awaiting for the Federal Reserve’s announcement and press conference. Today’s meeting is highly anticipated given what is occurring in the bond markets, particularly the 10 year yield. Can the Fed convince the markets that they can keep yields suppressed if required? This is what I expect from the Fed.

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The Real Reason the Stock Market was Under Pressure…and how Jerome Powell Saved it.

US Stock Markets have seen some red this week. Yesterday, we saw an incredible drop but an even more spectacular dip buying opportunity. The real reason for this drop has to do with inflation fears and rising yields. Fed Funds Futures were pricing in an increased probability of the Fed raising interest rates. However, Jerome Powell during his testimony reassured investors that rates are not rising and saved the Markets.

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Markets Expecting a Bank of Canada “Micro” Interest Rate Cut

The Bank of Canada is set to make its next move in the ongoing currency war with a micro cut down to 0.10% next week. This was expected by us. Central Banks are attempting to weaken their currencies to boost inflation, and in some cases, boost exports. A cheaper currency also allows all the debt, and government debt, to be paid back in cheaper currencies. We have been calling this, and why the way to play this is to be in hard assets/commodities and even cryptocurrencies.

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Equity Guru’s Market Moment – March 18

Two weeks ago, on Equity Guru’s Discord Channel, I mentioned this break of an important level on oil and provided these two target zones. We are rapidly approaching our final target of the 21 dollar zone.

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The Price War on Oil

In the worst week for the US stock market since the financial crisis, the S&P500 fell more than 7.5%, and a full-blown price war rattled

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Powell: “Nothing about this expansion that is unstable”

Federal Reserve Chairman Jerome Powell said that the Fed is keeping a close eye on the possible fallout and impact of the coronavirus outbreak in China. Powell hasn’t made any claims yet as to what this means either in terms of possible liquidity injections or a rate cut. Let’s examine that.

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Icahn’s noxious no-brainers and America’s share buyback binge: Is value extraction a sham?

Icahn’s traveling roadshow is only marginally better than the criminal activities of Bain Capital. These vicious business vultures swoop in, gain control of the shares, get the company to load up on back-breaking debt to commence a share buyback scheme which they sell into and walk away from long before the company’s books explode all over the retail bag holders.

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Monday Recap: Breakups are Hard

2 fatal plane crashes and 346 lives. That’s what it took for Boeing to admit that things weren’t going so well after all. The firm announced on Monday that it would suspend production of its 737 Max Jetliner. The firm will halt production in January.

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Wednesday Recap: Going Steady

The Fed left interest rates unchanged on Wednesday, and chairman Powell reinstated his belief that the labour market can improve further despite unemployment being at a half-century low. “Even though we’re at 3.5% unemployment, there’s actually more slack out there,” Powell said. “And the risks of using an accommodative monetary policy’’ to boost the labour market are “relatively low.’’

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Tuesday Recap: Trade Talks, NAFTA, and Chevron

Trade Talks

So here’s the thing: I think we’re in a classic game of Russian roulette. At this point in trade talks its really a matter of time before China and US finally admit to each other that they would rather engage in what is clearly a patter of self-destructive behaviour than come to a mutual agreement about any deal that might be on the table.

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Friday Recap: Job Reports for US and Canada

Jobs Are Here: US

Economic data about job gains was released this morning, and unemployment matched half-century lows. Markets chased fresh highs, reaffirming that the Fed’s decision to hold rates was a reasonable one.

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Thursday Recap: No Rate Cut for India & Aramco’s IPO

Aramco IPO is here

The oil-producing giant has priced its initial public offering at the high end of the target range to give it a total valuation of $1.7 trillion.

3 billion shares will be sold, which means investors will have the opportunity to buy a grand total of – wait for it – 1.5% stake of the company. On the Saudi Exchange, the high of the valuation target is 32 Saudi Riyals, ($8.53), a total offering of $25.6 billion.

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Thursday Recap: 2020 < GO >

Before it’s here, it’s in your inbox. Sign up for our daily markets newsletter here. Daily updates about what’s moving the markets. Bloomberg runs for President

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