Blogs

I am thankful for you as a business partner, colleague and friend. I am thankful for the years working together through the several bull and bear markets.

The major US market indexes had mixed results as investors struggled with the outlook for interest rates, amid cross-currents of upbeat retail sales and downbeat home sales.

November serves as a reminder that we have a lot to be thankful for. The most recent announcement from the Federal Reserve, however, might not be on that list.

November has been the month that keeps on giving in the financial markets. The stalwart S&P 500 index ― a broad gauge of US large cap stocks ― is up over 12% for the quarter to date.

A lower than expected rate of inflation along with signs of slowing economies here and abroad will lead to a softening and then pause in Fed rate hikes.

US inflation, as measured by CPI, rose at its slowest pace since January, increasing 0.4% in October to 7.7% y/y, versus 8.2% in September.

On Tuesday, I was excited to have the privilege, right and honor to vote. It is our duty to vote. You most certainly rooted for your party or candidate to win and, like many Americans, are probably fired up on politics, maybe even more than we are for our favorite football team.

The Fed’s 75 bp rate hike, though expected, came with a statement that markets took to be hawkish. Strong reported earnings and positive overall economic news has suppressed bond prices, leading to lower equity markets as well. 

Halloween may be over, but that hasn’t stopped the Federal Reserve from scaring the markets. The S&P 500, Dow Jones Industrial Average and Nasdaq Composite fell 2.50%, 1.55% and 3.40%, respectively, after the Fed announced on Wednesday its fourth straight rate hike of 0.75%.

ISM Manufacturing PMI dropped to a new two-year low of 50.2 (still indicating expansion) in October from the prior low of 50.9 in September.