We blowing money fast on this side
It looks as if the U.S. economy has entered the ‘find out’ stage after all that free money ($11.0 trillion) during the ‘mess around’ stage, also known as the pandemic and post pandemic. But for the record, a lot of that money is still being distributed on the federal and state levels.
In this stage, we see a slowing economy and the probability of the proverbial snowball becoming a boulder. It’s already begun in housing and manufacturing, and the strong consumer now has the second lowest savings rates on record and soaring credit card debt.
In the world of economics, this is called confidence. In the clubs, they call it a party. In most households, this is called pushing the envelope, and everyone knows what comes next - buckling down and surviving.
Market: Rough Sailing
Stocks stumbled out of the gate and never looked back. Safe havens got hit, but growth got slammed, which has been par for the course in 2022 . There was very little green on the screen with Tesla (TSLA) being the largest speck.
We closed several positions yesterday in our Hotline Model Portfolio. If you have any questions, reach out to your account representative or email Research@wstreet.com
There is lots of scuttlebutt over the impact of $4.0 trillion in options expiration. I’m not sure, but the follow-through to yesterday could be more critical. We are used to major moves, especially to the downside, the day after the conclusion of the Federal Open Market Committee (FOMC).
The day after is probably a better proxy for the days and weeks ahead.
Selling begets selling. I think Powell miscommunicated, and we will be eager to see if parade of Fed speakers hint at adjustments after the retail sales report.
|3/31/2023 1:37 PM||Leaving the Station|
|3/31/2023 9:37 AM||BRACING FOR INFLATION|
|3/30/2023 1:54 PM||Losing Some Steam|
|3/30/2023 9:36 AM||A FUNNY WAY OF BEING AFRAID|
|3/29/2023 1:37 PM||Bottom Fishers|
|3/29/2023 9:41 AM||TOO CALM AND COMPLACENT?|
|3/28/2023 1:31 PM||No Fireworks|
|3/28/2023 9:47 AM||TIME MACHINE RALLY|
|3/27/2023 1:34 PM||Holding Pattern|
|3/27/2023 9:59 AM||SUDDENLY, BULLISH IS WHERE ITíS AT|
|3/24/2023 1:25 PM||Magical|
|3/24/2023 10:14 AM||YELLENíS TWO-STEP TRIPS UP THE MARKET|
|3/23/2023 1:14 PM||Embarrassing Snafu|
|3/23/2023 9:37 AM||GOVERNMENT OFFICIALS PROTESTING TOO MUCH ††|
|3/22/2023 1:23 PM||All Quiet|
|3/22/2023 9:42 AM||THE MOMENT OF TRUTH #1,309|
|3/21/2023 1:12 PM||Lots of Questions|
|3/21/2023 9:49 AM||WHATíS INSIDE POWELLíS CRYSTAL BALL?|
|3/20/2023 1:58 PM||All Over the Place|
|3/20/2023 9:36 AM||FED COUNTDOWN BEGINS †|
|3/17/2023 1:45 PM||Banks Remain Vulnerable|
|3/17/2023 9:54 AM||FED VS THE FED (ITíS COMPLICATED)|
|3/16/2023 1:27 PM||Another Crazy Day|
|3/16/2023 9:53 AM||THRILL RIDE|
|3/15/2023 1:43 PM||Economic Data Overshadowed|
|More commentary archives|
Products & Services |
In The Media |
About Us |
All Rights Reserved.