Category Archive: 9a) Buy and Hold

(9/29/22) Hurricane Ian pounded Florida overnight; recovery and repairs will contribute economic activity to the area, but the "Broken Window" theory has some flaws and mirrors the relationship between stimulus and inflation. The Bank of England caved to pressure, repeating what caused inflation in the first place; the realization that high valuations cannot be maintained; bond market in biggest bear mode in history; Bond's role in with...

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(9/28/22) We have long held that market instability would be a key driver in a Fed policy shift from its current course of fighting inflation with higher rates. The Bank of England today is moving from quantitative tightening and starting to buy bonds because of "Market instability." A credit crisis causes much more long-term damage to an economy than does inflation, and any such crisis will dramatically reduce inflation, fast. And the...

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(9/28/22) The Bank of England caves to the risk of inciting market instability and resumes its quantitative easing program of bond purchases. Oil Prices may be poised to move higher; Millennials are making more trades than any other demographic; the problem of anchoring; there are benefits to holding cash; the genesis of mutual funds; 29% of Americans are withdrawing from savings for everyday expenses; survey of what women want: more financial...

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(9/27/22) Markets are set to rally this morning, as a big short-squeeze may be underway; the dollar is showing signs of weakness.

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(9/27/22) Are markets preparing for a big Short-squeeze? Just a month ago we were talking about rampant market bullishness, and now there's a high level of fear and angst in the markets. The dollar's strength has created more inflation overseas, at three standard deviations above the 50-DMA; that cannot last.

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(9/26/22) Markets sold off on Friday, re-testing June's lows. The question now is, is the market set to go lower, or do we get a reflexive rally to sell-into? June's lows will be re-challenged once again this morning, and with markets at three standard deviations off the 50-DMA, a reflexive-rally back up to 3,900 would not be surprising, and a great area from which to lift exposure. Bearish sentiment is now at record levels, and a record number of...

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(9/26/22) Markets on Friday held onto June bottoms and are expected to rally back to 3,900; there were a record number of put-options placed on Friday, as well, indicating investors are hedging against a market crash. Could Italian national elections installing a fiscal conservative by an overwhelming majority be a precursor to US Mid-terms? Current challenges in the auto market: Few used cars available, prices at a premium; long term result of...

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