Good morning.
The House of Representatives has reached a debt limit bill, following a long day of meetings. However, the current deal looks dead in the Senate. Given the partisan split between the two bodies, it’s clear we’re shaping up for another big debt ceiling debate.
We’ve seen enough of these to know that they can lead to some market fears in the short term. And that there will be a resolution in time, often when it seems nearly too late to have one.
Traders should expect rising volatility in the coming weeks until an actual deal that all parties can agree to is signed. Once that happens, market volatility should drop, and we could see a modest rally depending on how far stocks sell going into this latest crisis.
Now here’s the rest of the news:
April 27, 2022
Good morning.
Stocks are dropping again, thanks to the prospect of a faster increase in interest rates, as well as increasing lockdowns in China, home to the bulk of the world’s manufactured goods. Those factors may also be weighing on commodity prices, as oil briefly slid back under $100 per barrel after quickly closing in on $125 per barrel.
But the boom may not be over yet. Beyond price action, supply and demand indicates that shortages could continue to move prices higher overall.
In the US, inventories for natural gas are at “worrisome” levels, and look tight going into the summer, when demand is typically lower. And with Russia halting natural gas supplies to Poland, it’s likely that energy will continue to be volatile — but with more upside than downside ahead for the time being.
Now here’s the rest of the news:
Fed Puts The Economy Into New Territory
Total assets on the Fed’s weekly balance sheet as of April 20 declined to $8.955 trillion, roughly the same as on March 16 and below the levels of March 23 and April 13. Balance sheet growth and QE has ended. Now we could see… [Read Here]
Why The Gathering Stagflationary Storm Could Destroy Stock Investors
While recent shocks have made the current inflationary surge and growth slowdown more acute, they are hardly the global economy’s only problems. Even without them, the medium-term outlook would be verging on collapse because of… [Read Here]
April 27, 2021
Last Year, today!
April 27, 2020
Good morning.
To be honest, I’m ready to see things begin to open. I know it will be applied unevenly from state-to-state, but I spent my 20-year anniversary in a car waiting for food to be delivered from a local restaurant.
We then went to a park table and ate, while wondering if it was ok. I long for a sense of normalcy in life and the market. We may not be quite there yet for either.
Gold Price Doesn’t Need Negative Rates to Hit $2,000. “The gold market has seen a remarkable run since mid-March, rallying neatly $200 in a matter of weeks.” Gold to Reach $3,000 — 50% Above Its Record. “The bank increased its target from $2,000 previously, as policy makers across the globe unleash vast amounts of fiscal and monetary stimulus to help shore up economies hurt by the coronavirus.”
April 27, 2019
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