Why Is the Stock Market Rallying When the Economy Is So Bad?
I have been reading this article from The Wall Street Journal for a week or more, updated as the market continues to rise. A client also sent it to me Sunday, which inspired me to share it. Bottom line: the markets seem to expect a relatively fast recovery for now....
Learning to Cope
Would you rather listen to this month’s client letter? Download “Learning to Cope” from our podcast. As we enter the next phase of the coronavirus event, we are in uncharted territory. We are not out of the woods yet, and we may make mistakes and...
A Brief Update on the Markets
This has been an eventful week. We had big new developments from the government, including the Fed’s announcement this morning of a multi-trillion dollar buying program to support fixed income markets. The latest projections on the spread of the virus have...
Two Crises and Long-Term Changes
Our friend Mohamed El-Erian¹ has been writing, tweeting and appearing on business shows at a record pace lately, for obvious reasons. As our readers know, we have followed him since his days running the PIMCO Emerging Markets Bond Fund in the 1990s. Without...
The End of the Beginning?
This Coronavirus crisis has been compared to war, and rightfully so. Our people are under attack, and how well we fight may in large measure determine how long it takes to achieve victory and how many casualties we will suffer. We had some important developments in...
Hydroxychloroquine? What would Dilbert do?
And will we get a bill passed? Another eventful day. I have to admit I reached for my phone at zero dark thirty to see how the overseas markets were doing and found little comfort. The S&P 500 futures market had also traded to the limit and received a “time out”...
The Key to Long-Term Success
At some point in the future, hopefully very soon, the worst of this will be over and we will better understand how serious it was/is/will be. As we work from home and stay safe, we want to stay in close touch with our clients and our friends and professional...
Facing the Challenge
We would like to tell you the answer. When will this be over, and what is the market going to do next? But you know no one knows. This is a new challenge, and we have to face it and recognize what we are dealing with here. We have faced major health care challenges...
Now It’s Oil
Last week OPEC talks broke down when Russia refused to agree to proposed production cuts. As we have been saying in our recent letters, the coronavirus slowdown has reduced demand for oil and caused the price to decline. It just got worse. Over the weekend, Saudi...
Hecho en Mexico. Porque no?
As the sun comes up on another exciting day, European markets are up and US futures are up even more, after the Fed rate cut and down market yesterday, Monday’s huge rally, and last week’s rapid decline. Meanwhile, the 10-year Treasury is yielding well under 1%¹, a...
