It should be apparent by now that we are likely in a recession, as the Federal Reserve has finally embarked on a policy of tightening monetary policy to deal with historic inflation. Most pundits were shocked that 1st quarter GDP came in at -1.4%, as virtually no Wall Street economist predicted that much weakness. I [...]
As many people know, Netflix got creamed in the stock market yesterday as it traded down 35% from its previous close. This was in response to a lousy earnings report.Hedge fund manager Bill Ackman, who runs Pershing Square Capital Management, was among the investors who suffered significant losses. He decided to exit his position with a [...]
Back in 1993, I was five years out of college, and while making decent money as a commercial real estate appraiser, I was still searching for something new. Just the year before I had started making decent money for the first time in my life, and this had carried over to 1993. So, I was [...]
On Twitter today there some griping by some that a market pundit on CNBC was calling the current stock market a "bear market." I actually agree with that assessment, but I'll get to that in a minute. Wall Street likes to use various labels and categories, and one thing it hates to do is put the [...]
As one trader I follow commented today, "the selling was just relentless, and there was no bid to the market." The fact of the matter is that we are likely in the beginning stages of a bear market. At the very least, it will be extremely difficult for the market to make much headway in [...]
Back in 1990, I bought my first house. My mortgage rate was 10% for a 30 year loan. The yield on the 10 Year Treasury Note was a bit over 8%. Rates haven't been that high since. Yet, here we are in 2022, on the heels of an inflation report indicating that the inflation rate [...]
One of my favorite books on the subject of trading is How I Made $2,000,000 in the Stock Market. The book was written by professional dancer Nicolas Darvas in the late 1950s and describes how he turned a $50,000 account into over $2 million (that was some serious money back then!) in less than two years. [...]
Trend following is one of the more popular approaches to trading employed by money managers who trade primarily in the futures markets. It is also an approach employed by some hedge fund managers who trade in equities. With that in mind, I thought I would provide a primer on this important concept, as I feel it [...]
By early 2022, we'll know that the election of Joe Biden was an enormous mistake. Right now he benefits from being early in his term, and a media that covers his ass. But, there will come a point when the error of his ways will be too obvious to too many people, and the regret [...]
This post contains more articles dealing with the economy than my last few. I am seeing alot of crosscurrents, and differing opinions, so I thought it would be important to focus some attention these issues. Since I follow the commodity markets closely, I am very concerned by the massive rise in commodity prices. Anyhow, have [...]