Michael discusses how short covering, rather than real money, has driven the fastest recovery on record following a bear market, and looks ahead at slowing earnings growth.
Investors were disappointedInvestors were disappointed that trade tensions re-escalated and the Fed viewed their actions as a ���mid-cycle adjustment".
After a dramatic escalation in trade tensions between the U.S. and China early last week, the Chinese yuan depreciated significantly against the U.S. dollar.
On July 31st, The Federal Reserve (Fed) cut rates for the first time since 2008. In the immediate aftermath of this cut, the U.S. Dollar strengthened.
For the first time in 20 years, markets will have to survive without support from central banks.
In this year���s Holiday Eye on the Market, Michael records a note to his spouse on her father, the 2020 US Presidential election, and what might be the widest ideological divide in 100 years.
A brief note on the latest price action in equity markets, how business cycles end, and how markets are being left to fend for themselves without central bank intervention for the first time in 20 years.
The food fight between the President and the Fed Chair could result in too much easing, and the expansion of valuations beyond sustainable levels. The other food fight: leveraged loan issuers vs buyers. Issuers are winning this fight hands down due.
Trade barriers, once constructed, are not easy to remove and their implementation is likely provide a slower backdrop for financial market performance.
The S&P 500 could hit 10,000 by the mid-2030s