Bryan Perry
Inflation Might Already be at the Fed’s Target Rate
Princeton economics professor and former Vice Chairman of the Fed, Alan Blinder, weighed in on the current rate of inflation. Last Friday, he wrote in the Wall Street Journal that the Consumer Price Index (CPI) inflation rate has been an “alarming 7.1%.” “But the U.S. economy got there by averaging an appalling 10.6% annualized inflation […]
The $31 Trillion Elephant in the Fed’s Room
So much of the Fed’s narrative surrounding inflation is focused on upward pressure on wages and the cost of professional services. This was, once again, reflected in last Friday’s release of the Personal Consumption Expenditures Index (PCE) — the Fed’s favorite inflation indicator. What is never brought up at the post-Federal Open Market Committee press […]
Too-Hawkish Fed Stoking Recession Fears
Federal Reserve Chairman Jerome Powell gave a downbeat outlook for investors at the most recent press conference after the Federal Open Market Committee (FOMC) meeting. “We continue to anticipate that ongoing increases will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over […]
Select Stocks Buck Bear Market and Trade to New Highs
The year 2022 has been a challenge for most stocks. Headwinds created by hawkish Fed policy weigh on investors due to high short-term interest rates, mortgage rates, ongoing issues with Ukraine, COVID lockdowns in China, peak inflation (I hope), mid-term elections, uneven supply chain access and fear of a hard landing in 2023 due to […]
Correction in Energy Provides High-Yield Buying Opportunity
By now, most investors have heard and come to understand how the yield curve for the bond market is inverted — where the two-year Treasury Note yields considerably more than the 10-year Treasury Bond. An inverted yield curve historically marks a very difficult time for the economy in the coming months. Examples include major events […]
Global Tech Companies Leaving China For India
A bold move by China’s President Xi Jinping, the most powerful leader in China in decades, increased his grip on the government and the country when he recently was named to another term as head of the ruling Communist Party, but it broke with tradition. He immediately eliminated layers of the upper echelon of the […]