by pentoport | Nov 3, 2022 | Commentary
November 3, 2022 This latest bear-market bounce was predicated on good seasonality, the hopes for a typical mid-term election boost, and the rumors of a Fed pivot. Wall Street always finds a narrative for rallies in a bear market. But the negative economic and...
by pentoport | Oct 10, 2022 | Commentary
October 7, 2022 The effective overnight interbank lending rate is now 3.08%. It was just 0% a little over six months ago. According to the Fed’s current plans, the Fed Funds Rate (FFR) is heading to at least 4% by the end of this year; and perhaps all the way to...
by pentoport | Sep 6, 2022 | Commentary
September 6, 2022 People tend to hear what they want to hear and believe what they need to believe. In no place is this more true than on Wall Street. The Fed has made abundantly clear that it will tighten monetary policy until inflation is virtually vanquished. And...
by pentoport | Aug 22, 2022 | Commentary
August 22, 2022 Despite all the fanfare and cheerleading you hear in the Main Stream Financial Media, the recent bounce in equity prices has just been a rather pedestrian bear market rally. Bull markets are not engendered by a faltering global economy, very high...
by pentoport | Jul 15, 2022 | Commentary
July 15, 2022 The reality of record-high inflation combined with a hawkish monetary policy is slowing the economy sharply and has led to the current U.S. recession—two back-to-back quarters of negative growth. The economic contraction should soon cause inflation to...
by pentoport | Jun 28, 2022 | Commentary
June 28, 2022 President Joe Biden, Treasury Secretary Janet Yellen, the entirety of the money printers who inhabit the Federal Reserve, and virtually all of the deep state of Wall Street are still busy trying to convince you that a recession is unlikely. Well,...
by pentoport | May 27, 2022 | Commentary
May 27, 2022 Bear market bounces are violent yet short-lived. The latest excuse for an oversold rally was provided by JP Morgan’s Jamie Dimon. The bank’s CEO stated at Morgan’s Investor Day Conference on Monday, May 23rd, that the US economy remains...
by pentoport | May 20, 2022 | Commentary
May 20, 2022 Wall Street, we have a margin problem. Shares of Target (TGT) fell by 25% on Wednesday the 18th as their margins shrank by the same amount. TGT margins collapsed due to higher input costs, overstocking, and overstaffing. So much for the mantra that stocks...
by pentoport | Apr 14, 2022 | Commentary
April 14, 2022 The economy is faltering, and markets are becoming chaotic. In spite of this, the mainstream financial media is busy convincing investors that the bull market is solidly intact. The 10-2 Treasury yield curve inverted on Tuesday, March 29, 2022. This...
by pentoport | Mar 24, 2022 | Commentary
March 24, 2022 The recent stock market rally is a trap. This is because Wall Street is vastly underestimating how hawkish the Federal Reserve will have to get in order to fight inflation. And how much weaker earnings and GDP growth will become as a result. The fact is...
