The Next Stock Market Crisis Will Be Here Sooner Than You Think
Not long ago, everyone talked about electric vehicles taking over power grids and causing cities to crumble. It was a rallying cry for those against the likes of Tesla. Automotive manufacturers were slow to retool plants and invest in electric vehicle infrastructure and now that they are caught up, the EV movement has lost momentum. However, it’s not EVs that will bring the power grids to a grinding halt. It is, however, something else that is growing in popularity and will soon become a real problem that can’t be ignored.
Investors See Mixed Messages Before Earnings Season
The latest bull run was halted when the Consumer Price Index rose more than expected. While that could be a sign that inflation is returning, investors were also left with weekly unemployment claims that rose to a 14-month high, which was much more than expected. There may be a logical explanation for the jobless claims, but we’ll get to that in a second. The markets are awaiting Q3 earnings, which will be the next driver of prices, but in which direction? That and more ahead.
Stocks Are Prepping For a Breakout!
Investors are undoubtedly dealing with fear, uncertainty, and doubt right now. The situation in the Middle East is getting worse. Russia and Ukraine are still fighting. And now in the U.S. people are starting to question if a 50 basis point cut was too much, too fast, and will lead to inflation. But all of that aside, and I know that’s a lot, I think the market is prepping for a breakout and some of the best trading for the rest of the year still lies ahead!
Market Caution Amid Middle East Tensions: Why Earnings Season May Hold the Key to Stability
The escalation of geopolitical tensions in the Middle East has the market in a bit of a holding pattern. The initial reaction saw a spike in Gold and Oil, but luckily, we haven’t had much followthrough to the downside since then. We will take a look at some charts and why I think the market is largely ignoring the news and still prepping for an upcoming earnings season and when I think volatility will subside.
Can the S&P 500 Break Its September Slump? A Look at the Bullish Rally and What’s Next for the Market
After the Fed announced the first rate cut, the market has been rallying to new all-time highs. And why wouldn’t it? The GDP report was in line with expectations, unemployment claims came under expectations, and Fed Chairman, Jerome Powell, said he is dedicated to keeping the US Treasury market – the deepest and most liquid in the world – functioning at a high level.
The bullishness has pushed the S&P 500 to be on pace to do something it hasn’t done in the last four years. It might close September in the green, but how long can this rally last?
Is Your Portfolio Ready if the Holiday Shipping Crisis Hits?
Christmas is canceled this year so start setting expectations early. Santa and his elves are likely going on strike in the coming weeks right in time for the election and for a busy holiday season. I haven’t lost my mind – I know Santa doesn’t exist, but the looming shipping crisis is around the corner and could have a major impact on some key industries within the broader market. Is your portfolio prepared?
All Eyes On The Fed As Small Caps Could Be Signaling The Next Move Ahead
The market is stuck in a holding pattern until the Fed announces its decision on an immediate rate cut and the plan for future cuts. Investors have been arguing over a 25 or 50-basis point cut and will finally get the answer around 2 pm EST. The broader market indexes traded above resistance levels intraday yesterday but retreated by the close. While waiting for the next catalyst likely to move the market, we will look at small caps to see how willing investors are to dip into the riskier investment pool. Are the small caps signaling the next market move?
Economic Reports Confirm Smaller Rate Cuts Ahead
The inflation story in the U.S. continues to improve, but August’s Consumer Price Index report indicates that prices are slow to drop across the economy. The slowdown of inflation will prevent the possibility of a big Fed rate cut in the weeks ahead. The market is reacting positively since the uncertainty of the size of the rate cut is now becoming clear. But how long will the optimism last and what sectors are likely to continue pushing higher from here?
The Fed’s Soft Landing Faces Turbulence
Treasury Secretary Janet Yellen says the U.S. is still on the path to a soft landing, but investors aren’t acting that way, selling off shares to make last week one of the worst weeks in a year. So what is it that she sees that investors don’t? How will the recent string of data affect the Fed’s decision to cut interest rates later this month? The previous two monthly jobs reports may show turbulence on the way to a soft landing.
Can The Pivotal Jobs Report Save The September Blues?
It seems like for months we’ve been focused on reports like the Consumer Price Index, Producer Price Index, and Gross Domestic Product growth. Everything had to line up perfectly to give us the soft landing, and for weeks, we were hoping to see a slowdown in growth just enough to give the Fed reason to cut interest rates. Now investors are getting that slowdown they asked for, but the stock market is falling instead. What can stop the fall and where can the market head from here?
