Eric Kuby, Chief Investment Officer of North Star Investment Management, writes a weekly commentary on market and economic trends. Here is a sampling of recent commentary:
Poor Chairman Powell
Last Week: Chairman of the Federal Reserve is near the top of my list of extraordinary stressful jobs that I would hate to have. Currently, it would fall somewhere between a war-zone surgeon and an undercover narcotics officer on the Chicago Police Department. Poor Jerome Powell probably listens to [...]
Still Transitory After All These Years
Last Week: Since the end of April when Fed Chair Jerome Powell dismissed inflation pressures as being temporary, “transitory” has become the new bullish buzzword for the stock and bond markets. The 5% year-over-year increase in the consumer price index reported on Thursday was the biggest jump since August [...]
The Heat is On
Last Week: “The heat is on, it’s on (Wall and Main) street, the heat is on, on, on." The economy has been rebounding sharply, and with that rebound, there has been a surge in inflationary pressures and related concerns over interest rate increases. As such, the market treaded water [...]
Let the Good Times Roll
Last Week: Equity markets ground higher, fueled by (1) good earnings from economy re-opening companies and from several residential real estate-related companies; (2) a benign bond market that seems comfortable with the Fed’s ‘inflation is transitory’ party line; (3) improving U.S. and European Coronavirus data trends that support economic [...]
Fed Hedges, Market Yawns
Last Week: In our previous commentary we highlighted the FOMC meeting minutes, noting that “investors will scour the transcript for any cracks in the Fed’s conviction to keep short-term rates near-zero for the foreseeable future.” The surprising dialogue about “tapering” did at least briefly challenge traders’ complacency. The meeting [...]
Wild Ride
Last Week: Mr. Market, like Disneyland’s Mr. Toad, had a wild ride. Toad, borrowed from “The Wind in the Willows”, regularly becomes obsessed with current fads, only to abandon them abruptly. That sounds like a reasonably good description of most of the trading community. May has provided a particularly [...]
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