Things Are Looking Up
It looks like the dark mood is lifting. That trend suggests that the Fed's interest rate program has worked to tame inflation. So, will the Fed keep raising interest rates?
It looks like the dark mood is lifting. That trend suggests that the Fed's interest rate program has worked to tame inflation. So, will the Fed keep raising interest rates?
Are we on the brink of a new bull market? We might be. The S&P 500 has soared in 2023 and is up nearly 20% from its October 2022 low. That's pretty surprising given the concerns about interest rates, recessions, banks, and a war in Europe, so some analysts are wary.
Regardless of our personal feelings about election results, history tells us that markets generally prefer a divided government. Splitting governance between both parties typically means fewer sweeping policy changes that could introduce uncertainty.
If you're looking for perfect clarity, you won't find it here. From where I stand, the crystal ball looks murky as heck. Even the economic data strategists rely on is confusing, complex, and contradictory.
When the Fed sets higher interest rates, it increases the cost of credit across the entire economy, making mortgages, car loans, credit cards, business financing, etc. more expensive. Investors worry that those higher rates will slow the economy (and maybe tip it into recession) and ding company performance.
Can we trust a summer rally? Is the bear market over? Probably not. There are a lot of hurdles ahead, including the Federal Reserve's interest rate hikes and earnings results from companies affected by those consumer spending changes, and election season.
Markets rallied in relief on some better-than-expected data on Friday. It was a bright spot but the Dow, S&P 500, and Nasdaq still all closed out the week with losses.
Stocks slid into bear market territory after a bad May inflation report showed that prices rose at the fastest pace since 1981. It's clear that the Federal Reserve's efforts to cool inflation
With so much talk about recession and inflation in the headlines, you might be understandably nervous. So, in this video, I’ll be discussing what you can do when a recession seems imminent.
Stagflation is a buzzword combining "stagnation" and "inflation" and signifies an economy plagued by low economic growth, high inflation, and high unemployment. We saw it in this country in the 1970s during an oil crisis.