The Fed, Markets, Social Security & Medicare
The final Federal Reserve meeting for the year will conclude this Wednesday, with expectations that the Fed will leave rates steady. The Fed has raised rates 11 times since March 2022 to July 2023. The most important element of the Fed’s announcement will be the “dot plot”. How many rate “cuts” will the Fed forecast […]
Will Markets Reach New Highs?
How much farther do US stock indexes need to climb to reach new highs? The indexes I’m referring are the Dow Jones Industrial Average, the S&P 500, the Nasdaq Composite and the Russell 2000. We would need more than a weekly blog to discuss the possible reasons for the large divergence between the indexes. Market […]
Stocks Continue Higher
Stocks continued November’s race higher, however this week was a little different. Healthcare and Consumer Staples were sector leaders, rising 2.08 and 1.30% respectively. For the year however, they continue to trail the S&P 500. Year-to-date, Healthcare is down (3.80%), Consumer Staples, down (4.64%). Many have suggested the stock market rally cannot continue without participation […]
Markets – Melting Higher!
Inflation numbers last week pointed in the desired direction, providing hope to investors the Federal Reserve is now done raising rates, and begin reducing rates in 2024. That was enough to propel both stock and bond markets higher for the week. The small-cap Russell 2000 led the gains, rising 5.42%, followed by the S&P 500, […]
November Markets – Tax Changes
November appears to be shaping up as a strong month for the stock and bond markets. After 3 challenging months prior, a welcome reprieve. This Tuesday we’ll hear the October Consumer Price Index (CPI) report, followed by the Producer Price Index (PPI) and Retail sales reports on Wednesday. Tame numbers will be welcomed by the […]
Interest Rates, Interest Rates!
Just what we desired, interest rates to move lower! The 10-year US Treasury yield hit a 2023 high on October 18th @ 4.988%. This past Friday, the yield fell to 4.577%. Huge move in a couple weeks. Why did interest rates move lower? A couple of reasons. One, the Fed is suggesting they are now […]
Stocks versus Bonds
With 2 months remaining in 2023, stock and bond indexes are mixed. Prior to the end of July, all of the above were in the positive. Why the change? Interest Rates! The 10-Year US Treasury on July 31st yielded 3.95%. Last Friday the yield closed @ 4.845%. Inflation has moderated, corporate profits are holding up, […]
Perfect Storm? Or Not?
Starting with the good news! In the short-term, at least, much attention will be paid the Israel/Hamas war. In the past, similar issues abroad have only temporarily impacted our markets. As the blog is concentrated on the impacts of our economy, markets, and your retirement, watching the events unfold with the loss of life and […]
Interest Rates – Social Security & Medicare – The Markets
Interest Rates! Everyone realizes the cost of borrowing has a significant impact for our economy and each and every one of us. Directly or indirectly! Last week, several of the Federal Reserve representatives suggested the Fed may be done raising rates. Why? Market interest rates, which change daily by the supply and demand needs of […]
