A spike in energy prices and sharply higher interest rates have been two of the leading causes for pullbacks in the past. Also, we need to pay close attention to quarterly earnings, which are currently coming in on the strong side.
There are two ways to double the number of transistors on a computer chip: Either make the chip twice as big — not an option for small electronic devices – or halve the size of the transistors.
A benign inflation reading and a slew of earnings reports provide a reassuring backdrop for today’s trading session, with stocks on track to reverse the prior days’ geopolitics-inspired pullback.
The euro slipped through the low of the year and the weekly trend line going back to 2012. However, it found bids near $1.3460 and has recovered a bit. The key on the upside now is $1.3500. A move above there and the technical tone can begin stabilizing.
One of the most notable things about bull markets is how they continually surprise you to the upside. Quite often investors will tell themselves “the market is overbought and has to correct,” only to find that it either doesn’t correct nearly as much as they expect or doesn’t even correct at all.
I recalled those words from my friend Shad Rowe, who is the eagled-eyed captain of the Dallas-based money management firm Greenbrier Partners, as I listened to Janet Yellen's testimony last week. Ms. Yellen was opining that the action in social media and biotech stocks is reminiscent of what Shad was warning about in Forbes magazine 23 years ago.
The answers to two looming questions are becoming clearer: Why have interest rates fallen? And is China actively trying to rid itself of exposure to the dollar?
For a long time, as we saw it, tapering and the threat of tapering (as in last year’s taper tantrum) did not constitute tightening. Today we explore why we believe the situation has now changed.
There has been a clear preference this year for large cap stocks over small cap. This is readily visible when looking at performance of the Russell indices with the mega cap stocks like the Russell Top 50 Index up just under 5% year-to-date (YTD) while...
It is normal and understandable that investor confidence grows as paper profits in a long rally or bull market pile up. It’s therefore normal and inevitable that investor sentiment will be at its most bullish for that cycle by the time a rally or bull market tops out.
Broad-based increases in the LEI over the last six months signal an economy that is expanding in the near term and may even somewhat accelerate in the second half.