Using the Strategic Petroleum Reserve To Fight Inflation

The inflation numbers for August came in hotter than expected, rising 0.1% for the month against the falling forecast. On the surface, it does not seem too bad, considering inflation is over 8% for the year, and it paused in July. The Fed and investors were by far and away hoping that they had seen…… Continue reading Using the Strategic Petroleum Reserve To Fight Inflation

Investors Should Worry More About Quantitative Tightening

There is a lot of negative sentiment in markets now, just as inflation pain and recession fears began to ebb. Despite zero evidence, many investors were banking on the FED pivoting from the aggressive rate hikes sooner rather than later. Some investors got ahead, bidding stocks off their June lows for a mid-summer rally in…… Continue reading Investors Should Worry More About Quantitative Tightening

Recession or Nah?

The recession debate has died down a bit as political and financial commentators gravitated to the next dumb debate over the White House’s quote of zero inflation for July. Inflation was zero for July. The inflation rate for the twelve months ending in July is 8.5%. I am unsure if it was worse seeing so…… Continue reading Recession or Nah?

What A Year This Quarter Has Been

It has been a difficult quarter for investors. Major indexes entered bear territory (means down 20%). US treasuries, generally the safest of assets for when investors are scared, have had their worst year since the 70s (when interest rates go up, bonds go down). Commodities, which I generally say “they suck until they don’t,” have…… Continue reading What A Year This Quarter Has Been

The Economy: How Did We Get Here and Where Is It Going?

Markets have been getting a lot of attention lately beyond the financial media. The S&P 500 is down 21%, the tech-heavy NASDAQ 100 is off over 29%, and the smaller company-oriented Russell 2000 is down over 24% year to date.  Investors have a lot of concerns over the economy right now:  Inflation (the author still…… Continue reading The Economy: How Did We Get Here and Where Is It Going?

Will Rising Mortgage Rates Cool Hot Housing Market?

The housing market is hot. It has been surging since the beginning of the pandemic. The Federal Reserve cut interest rates to historic lows and began purchasing bonds and mortgage securities in an extraordinary effort to boost the economy. As a result, mortgage rates fell to historic lows and stayed there until very recently. Now,…… Continue reading Will Rising Mortgage Rates Cool Hot Housing Market?

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Politicians Can’t Do Much About High Oil Prices

The price of oil is surging, and so is the debate over what is causing the fastest runup in recent memory. As we approach the midterm elections, candidates and the broader media will continue to discuss gas prices and inflation. What has caused the surge in oil prices, and can policymakers do anything about it?…… Continue reading Politicians Can’t Do Much About High Oil Prices

Inflation Rates Are Rising: What You Need to Know

Inflation seems to be all the rage today with traditional and financial media, and for a good reason. Globally, inflation rates have increased significantly over 2021. Inflation rates are running higher for consumers than in over a generation, and that has many people asking: How does inflation work? Should I be concerned about inflation? What…… Continue reading Inflation Rates Are Rising: What You Need to Know