Money Sense

[Anonymous]

I'm glad I'm not retiring soon.

[Anonymous]

Traders have been bailing on risky momentum tech stocks, bitcoin and other cryptocurrencies and other investments that could benefit from an economic rebound.



Investors would do well to avoid speculative tech stocks and European stocks due to worries about excessive valuations and a potential economic downturn. Instead, I recommend my clients move towards quality blue chip stocks that pay steady dividends.



Instead, investors are now flocking to stocks that are perceived to be better hedges against, and in some cases beneficiaries of, inflation and rising interest rates.



Case in point? Oil stocks are big market winners this year. Chevron (CVX), up more than 40%, is the top Dow stock, and it's one of the largest four holdings in Warren Buffett's Berkshire Hathaway (BRKB), which is soundly beating the market this year.



Berkshire also is a big investor in Occidental Petroleum (OXY), which has more than doubled this year and is the best performer in the S&P 500.

[Anonymous]

Veteran market chartist Larry Williams said fresh technical analysis signals the market is headed for a bottom. I believe he is correct.  I know it's tough to believe anything positive at this moment, but I said the same thing in April 2020.

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Let's examine the S&P 500 futures chart.

https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAXxv7T.img?w=534&h=280&m=6">

The futures line is in black and the advance/decline line, a cumulative indicator measuring the number of stocks going up on a daily basis versus the number going down, is in blue.



The advance/decline line as an indicator of the market's internal strength or weakness.



Right now, you can see that while the S&P spent the last week getting smashed into oblivion, the advance/decline line has been holding up much better. In fact, it's steadily worked its way higher.



This chart reveals that the volume of trading has already started to "dry up on the sell side.

https://img-s-msn-com.akamaized.net/tenant/amp/entityid/AAXxwTa.img?w=534&h=280&m=6">

[Anonymous]

Investors got a reprieve from a painful sell-off as the Dow Jones Industrial Average and the S&P 500 rallied to close their best weeks since November 2020.



The Dow jumped 575.77 points, or nearly 1.8%, to 33,212.96. The S&P 500 rose about 2.5% to 4,158.24. The tech-heavy Nasdaq Composite was the outperformer, helped by strong earnings from software companies and a fall in the 10-year Treasury yield. It was ended the day up 3.3% to reach 12,131.13.



All three of the major averages closed the week higher. The Dow finished up 6.2% for the week and snapped its longest losing streak, eight weeks, since 1923. The S&P 500 is 6.5% higher and the Nasdaq is up 6.8% on the week. Both indexes ended seven-week losing streaks. A chunk of the week's gains came Thursday and Friday, when all three of the averages rallied as strong retail earnings and a slowing inflation report lifted sentiment.



A report showing inflation slowing a bit helped give stocks a boost on Friday. The core personal consumption expenditures price index rose 4.9% in April, down from the 5.2% pace seen the previous month. This particular report is watched closely by the Federal Reserve when setting policy.

[Rancidmilko]

With the inflation in the US, many are looking elsewhere to buy imported goods, the US is quickly becoming the worst option



However, since the US imports a lot from us, the price of things going up there means it goes up here too, so exporters are making more money

[Anonymous]

With the inflation in the US, many are looking elsewhere to buy imported goods, the US is quickly becoming the worst option



However, since the US imports a lot from us, the price of things going up there means it goes up here too, so exporters are making more money

The shit the US exports like agricultural products, and fuels will be expensive from any supplier.

[Anonymous]

Economists say the Bank of Canada is still on track for another oversized rate hike on Wednesday after the latest Statistics Canada data showed the pace of economic growth slowed in the first quarter.



The Bank of Canada is expected by economists to raise its key interest rate target by half a percentage point to 1.5 per cent in its decision Wednesday in an effort to slow inflation which is running at its hottest pace in three decades.



The annual inflation rate hit 6.8 per cent in April, its highest level since January 1991, while the Bank of Canada has a target of two per cent for the annual rate.

[Anonymous]

It gets worse.



Stocks dropped sharply on Friday after a highly anticipated inflation report showed a faster-than-expected rise in prices and consumer sentiment hit a record low.



The Dow Jones Industrial Average shed 880 points, or 2.73%, to close at 31,392.79. The S&P 500 fell 2.91% to settle at 3,900.86. The Nasdaq Composite sank 3.52% to 11,340.02.



The sell-off was broad, with nearly every member of the 30-stock Dow in the red. Declining stocks on the New York Stock Exchange outpaced advancing ones by more than 5 to 1.



Apple dropped nearly 3.9%, while Microsoft and Dow, Inc. slid about 4.5% and 6.1%, respectively. Salesforce sank 4.6%, and Amazon fell more than 5%.



Friday's declines means Wall Street suffered its worst week in months. The Dow fell 4.58% for its 10th down week in the past 11. The S&P 500 and Nasdaq Composite lost 5.05% and 5.60%, respectively, for their ninth losing week in 10 and the worst week since January.



The May consumer price index report came in at its highest level since 1981, putting pressure on the stock market. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year-over-year increases of 8.3% for the main index and 5.9% for the core index.

[Anonymous]

It gets worse.



Stocks dropped sharply on Friday after a highly anticipated inflation report showed a faster-than-expected rise in prices and consumer sentiment hit a record low.



The Dow Jones Industrial Average shed 880 points, or 2.73%, to close at 31,392.79. The S&P 500 fell 2.91% to settle at 3,900.86. The Nasdaq Composite sank 3.52% to 11,340.02.



The sell-off was broad, with nearly every member of the 30-stock Dow in the red. Declining stocks on the New York Stock Exchange outpaced advancing ones by more than 5 to 1.



Apple dropped nearly 3.9%, while Microsoft and Dow, Inc. slid about 4.5% and 6.1%, respectively. Salesforce sank 4.6%, and Amazon fell more than 5%.



Friday's declines means Wall Street suffered its worst week in months. The Dow fell 4.58% for its 10th down week in the past 11. The S&P 500 and Nasdaq Composite lost 5.05% and 5.60%, respectively, for their ninth losing week in 10 and the worst week since January.



The May consumer price index report came in at its highest level since 1981, putting pressure on the stock market. The report showed prices rising 8.6% year over year, and 6% when excluding food and energy prices. Economists surveyed by Dow Jones were expecting year-over-year increases of 8.3% for the main index and 5.9% for the core index.

I looked at my pension statement yesterday. It's depressing. I only have 21 months to go.

[Anonymous]

World shares sank Monday after a report that U.S. inflation worsened last month sent stocks reeling last week on Wall Street.



Germany's DAX lost 1.9% to 13,496.91 and the CAC 40 in Paris declined 2.2% to 6,052.73. Britain's FTSE 100 lost 1.5% to 7,208.31. The future for the S&P 500 was down 2.6% while that for the Dow industrials lost 2%.



Tokyo's Nikkei 225 index lost 3% to 26,987.44 and the Hang Seng in Hong Kong skidded 3.4% to 21,067.58. In South Korea, the Kospi declined 3.5% to 2,504.51 as a truckers strike added to concerns over supply chain disruptions. The Shanghai Composite index dropped 0.9% to 3,255.55.



High-growth technology stocks, cryptocurrencies and other big winners of the pandemic's earlier days have been hurting the most, but the damage is broadening as retailers and others warn about upcoming profits.

[Anonymous]

It was another horrendous day on global markets. We are officially in bear territory. The latest US inflation report was the trigger. Higher interest rates and a recession are right around the corner.

[Anonymous]

The US Federal Reserve intensified its fight against high inflation on Wednesday, raising its key interest rate by three-quarters of a point — the largest bump since 1994 — and signaling more rate hikes ahead as it tries to cool off the U.S. economy without causing a recession.



The unusually large rate hike came after data released Friday showed U.S. inflation rose last month to a four-decade high of 8.6% — a surprise jump that made financial markets uneasy about how the Fed would respond. The Fed's benchmark short-term rate, which affects many consumer and business loans, will now be pegged to a range of 1.5% to 1.75% — and Fed policymakers forecast a doubling of that range by year's end.

[Anonymous]

Markets worldwide are back to tumbling on Thursday, and Wall Street is down roughly 3% in a widespread wipeout as worries about a fragile economy roar back to the fore.

[Anonymous]

Markets worldwide are back to tumbling on Thursday, and Wall Street is down roughly 3% in a widespread wipeout as worries about a fragile economy roar back to the fore.

The USA is moving fast into a recession, or so it appears.

[Anonymous]

I also predict the US recession is coming sooner. The more the Fed increases rates, the deeper the recession.



Deutsche Bank now expects 'an earlier and somewhat more severe recession'



The first economist on Wall Street to predict a U.S. recession in 2023 is moving up his timeline for an economic contraction.



"More than two months ago we forecasted that the U.S. economy would tip into a recession by end-2023," Deutsche Bank Chief U.S. economist Matt Luzzetti wrote in a note to clients on Friday. "Since that time, the Fed has undertaken a more aggressive hiking path, financial conditions have tightened sharply and economic data are beginning to show clear signs of slowing. In response to these developments, we now expect an earlier and somewhat more severe recession."



Luzzetti now sees U.S. gross domestic product (GDP) growth coming in at "sub-1%" in the first half of 2023, followed by a -3.1% contraction in the third quarter of 2023 — one quarter earlier than Luzzetti previously estimated. In the fourth quarter of 2023, Luzzetti expects growth to contract by another -0.4%.

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