High inflation environments have always been tough on stock prices. It’s really not the level of rates itself… or whether or not short-term rates have hit this level or that level. The problem lies in the “expectation” for higher rates.
Two very large grocery store chains are discussing a merger? My antenna goes up when I hear about proposed mergers. I mean it must be tough in the food business these days when two large general grocers without a niche market, companies like Kroger and Albertson’s discuss a merger.
Why do we trust people more when they’re wearing hard hats? When I see someone wearing a hard hat the first thing I’m thinking to myself is “should I be wearing one of those too”?
Financial managers on Wall St. should never ever be able to dissuade the Fed from acting because they are “at-risk” of losing tons of capital haphazardly placed into longer term U.S. Treasuries
Even at my age I can jump higher than 3 ft.! Seriously people, does living there make any sense at all? To purchase a million$+ property in a coastal city and be only a mere 3 ft. above sea level?
Are you one of the millions of Americans contemplating whether or not the U.S. Economy is now in a Recession? I’ll answer that question with the following News Report: People are robbing Dollar Stores now! I’m LMAO!
The take away from this exercise is to understand that government spending, along with increased tax burdens, can eventually crowd out personal consumption and investment, and result in reducing future growth.
The Implied P/E Expansion Model is a simple quick-test to assist in determining whether current valuations in the U.S. stock market [in aggregate] make sense given the level of interest rates. What’s funny about this is that 15 years ago I wrote that the “normal” 10-year Treasury yield was 7.5-8%!
Take a look under the hood of your portfolio to see if you are “fighting the Fed”? “Never Fight the Fed” is one of the oldest monikers on Wall St.
Let me introduce to you what you can expect next from these Leftist Alarmists, once “Climate Change” has been totally discredited, [and it will be], I predict they’ll turn to the next follow-on lie…
Inflation will continue to roar @ 15% [including food and energy]. The next Fed rate meeting is not until September. Given the highest runaway inflation since the 1970’s, the Fed will need to deliver yet another large hike in rates. How is that compatible with growth stocks?
There’s a ton of misnomers about this subject. Some people have become experts on this subject. I would like to dispel some of the popular rumors out there, especially for all you non-financial types on the subject of Social Security payments.