Now that I have your attention, no, Fed Chairman Powell has not indicated any signs of a pullback in easing policy. In addition, Chairman Powell last week reiterated that the Fed would keep rates where they are and doesn’t see substantial risk of heightened inflation pressures in the current environment. However, in light of
Going into last week’s Congressional hearing with Robinhood, Reddit, and Citadel, I was expecting an episode from House of Cards. The suspense, the intrigue, the twists and turns. However, if you were watching, you’d know that it was, of course, none of that. For all the excitement around Gamestop and RoaringKitty, the Congressional hearing was
My kids, like many their age, really love their video games. I don’t know when it really started, but their fondness for all things digital have grown during COVID. They love all types of games. My younger daughter still likes her silly Barbie and coloring games on the iPad. My son has taken more
One of the surprising things that came out of the COVID crisis is the sudden jump in savings rates for many Americans. Many people first thought the stimulus checks would go straight to paying off debt (which they did). In recent data, the lingering effects of COVID has also caused high savings rates to
A lot of our market updates have revolved around discussions of going long stocks, but this week we took a different approach and kept things short. Of course, I’m referring to short selling. I’m also going to apologize upfront for the short puns that may result in excessive eye rolling. But I’m a punny
As the markets continue to climb higher, many market pundits (including myself) have been warning of pockets of “irrational exuberance”. There are several bubbles in the market right now. It’s most noticeable when looking at a chart of a company’s share price or value. Red flags go off when the chart goes parabolic, suddenly
In economics, there are several different indicators that can tell us the state of the economy today (lagging indicators) and tomorrow (leading indicators). However, there is an unconventional indicator that is “reserved” by the banks that isn’t found in Econ 101 textbooks. This would be a balance sheet item known as loan loss reserves.
Fortunately, or unfortunately, I have had the privilege to live through a few market cycles. I’ve seen the highs and lows of each cycle. Speculative bubbles, in particular, do not repeat themselves exactly. They are always a little different and the asset class they take hostage also changes. Be it the junk bond boom
A new Market Update to welcome the New Year. Forecasting the year ahead is always a difficult task. After the craziness we saw in 2020, who would try to predict what is in store for us in 2021? I am going to start off the year with some of my main questions I have
The holidays are over. My kids have opened all their presents. I don’t know why I tend to dwell on things toward the end of the year. I assume it’s natural to reflect on the past year. Of course, 2020 has been pretty crazy. Time magazine said 2020 was the worst year ever. Sounds
