In the Financial Times, Alexandra Scaggs suggests that the Federal Reserve's plan could be "hike until something breaks" and "try to fix whatever broke by cutting rates." She writes: As markets prepare for another 75bps rate increase from the Federal Reserve, Goldman Sachs have reviewed the historical rate-hike playbook for central banks in Group of 10 countries. It… isn’t entirely discouraging. It goes a little something like this: — hike until something breaks — try to fix whatever broke by cutting rates When it comes to the Fed, at least, the note appears to support the “pivot” … [Read more...]
Archives for November 2022
Make Your State Florida
Lee Zeldin just might make New York great again. He, like other Republican candidates, sees why Floridians love Florida. As he gains in the polls, Kathy Hochul has called in the Democrat big guns (more like cap guns) in Hillary and Kamala to shore up the base. Is it too little too late, as a big Red Wave crests over big blue cities? There’s plenty of blame to go around. In New York state, the Second Amendment is absolutely on the ballot after the recent Supreme Court ruling was trashed by the state, including Hochul, who insulted gun owners with her new regulations. In listening to … [Read more...]
UNCERTAINTY AHEAD: Traders Turn to Short-term Contracts
Bloomberg's Lu Wang reports that traders are turning to short-term contracts in an attempt to profit despite long-term uncertainty created by inflation and the Fed, writing: It happens in a flash: The S&P 500 turns on a dime, and piranha-like options traders pile into short-dated contracts in a dash to harvest a quick advantage. Tuesday reprised a pattern that has been visible for months. As the S&P 500 reversed a 1% gain in a violent session right before the Federal Reserve meeting, the turbulence fed a trading frenzy in options that expire within the next 24 hours. Such contracts … [Read more...]
Here’s an Investment You Can Sink Your Teeth Into
Happy November. Hope you made it a good month. When stocks are up 14% for the month, it’s hard not to. Why? Because it was the best month for the Dow Jones Industrial Average since January 1976, the same month Queen’s Bohemian Rhapsody topped the charts. That’s a lot of months in between then and now. What does that mean to Your Survival Guy? Not much. Because when prices are untethered, it’s a perfect time to remain focused on being an investor, not a speculator. In other words, to be paid dividends to invest in stocks. Look at what’s happening to the FAANG storyline, and you see what I … [Read more...]
Toyota Suffers Chips Shortages, COVID Lockdowns, and Rising Rates
Toyota is fighting headwinds in its efforts as it is faced with rising interest rates in the United States, COVID lockdowns in China, and chip shortages at its factories. Eri Sugiura reports for the Financial Times: Toyota’s quarterly operating profit fell 25 per cent from a year earlier as the world’s largest carmaker warned that it was struggling to cope with yen volatility, interest rate rises in the US and production disruption caused by China’s coronavirus lockdowns. Following record profits last fiscal year through March, Toyota’s fortunes have reversed as persistent chip shortages … [Read more...]
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