Category: Weekly Market Commentary

The Markets Congress is at $900 billion, will they hear $1.4 trillion, $1.4 trillion, governments at $900 billion, who’ll go $1.4 trillion, $1.4 trillion… The stimulus auction continued last week. Early on Sunday, The New York Times reported, “Lawmakers are on the brink of agreement on a $900 billion compromise relief bill after breaking through… Read more »

The Markets When it comes to beverages, frothy can be delicious. In what may be the least inspiring description of fizzy drinks ever written, a group of food engineers explained, “Aeration in beverages, which is manifested as foam or bubbles, increases the sensory preference among consumers.” Stock markets can fizz up, too. Share prices bubble,… Read more »

The Markets When is bad news good news? Take a look at last week. Major stock indices in the United States hit all-time highs on Friday, despite a lackluster employment report and a surge in COVID-19 cases, reported Lewis Krauskopf of Reuters. During the week, we saw: • The slowest jobs growth since the economic… Read more »

The Markets Last week, vaccine optimism immunized investors against signs of economic weakness. In previous commentaries we’ve written about narrative economics, which holds that popular stories may affect individual and collective economic behavior. Last week, diverse narratives had the potential to influence consumer and investor behavior, but not all did. You may have read that:… Read more »

The Markets The U.S. economy is like a semi-trailer truck. No one likes being stuck behind a semi at a stoplight because big trucks don’t go from zero to 60 in 2.5 seconds. Neither does the U.S. economy. When the pandemic brought our economy to a near virtual standstill early in 2020, the U.S. government… Read more »

The Markets Vaccine can be a powerful word. It’s worth 14 points in Scrabble (42 on a triple word square) and, last week, it was worth a whole lot more than that to financial markets. On Monday, a pharmaceutical company and a biotech company announced preliminary trials of their vaccine show it may be 90… Read more »

The Markets It’s said markets hate uncertainty, but that wasn’t the case last week. Despite tremendous uncertainty about the outcome of the United States election, major domestic and international stock indices moved higher and the CBOE Volatility Index, better known as Wall Street’s fear gauge, moved 35 percent lower. Ben Levisohn of Barron’s reported: “By… Read more »

The Markets Last week, financial markets and economic data told very different stories. Reviewing economic data is a bit like looking in a rearview mirror. Typically, it offers information about what is behind us. For example, last week we learned: • The U.S. economy grew by 33.1 percent during the third quarter of 2020. Strong… Read more »

The Markets Stimulus talks led investors in a merry dance last week. So far in 2020, stock markets have been sensitive to fiscal stimulus. Last week, there was optimism a new stimulus package could be negotiated before the election. There also was skepticism about whether it would happen. An expert cited by CNBC stated, “There’s… Read more »