New Adventures of Old Auto ­čÜś

­čĺŞ┬á Yields keep on rising.┬áFor 3rd straight week,┬á#RisingYields┬ácontinue tacking on another 9%. Surging energy prices, strong┬á#COVIDRecovery┬ádata and incoming Fed action continues to drive┬á#InflationFears┬áand┬á#Flight2Safety rotation. ­čçĘ­čç│┬á Biden/Xi virtual summit.┬áWhite House reengaging Beijing holding a virtual summit later this year. Markets popped Thursday on┬á#ChinaTension┬árelief with S&P 500 finishing +1% for week. ­čÜÖ┬á Legacy auto in spotlight.┬áGeneral Motors Read More

Market-Deflating Inflation

Market Musings 10/6/2021 Quick thoughts on the markets and major portfolio news. Not on Ursa yet? Download Ursa from the App Store! Conservative Fed playing catch up to surging inflation data. We expect more volatility as incoming Fed action gets concrete timeline. High growth likely impacted; portfolios positioned for more #Flight2Safety. Markets have been incredibly Read More

Blue or Red Pill? ­čśÄ Green Pill! ­čôł

­čôë┬á September pullback.┬áS&P 500 finished September down -5%´╝Źfirst red month after 7 consecutive green ones. Macro uncertainty drove market correction off all-time highs as investors faced┬á#InflationFears,┬á#RisingYields┬áand┬á#ChinaTension. ­čĺŞ┬á Yields keep rising.┬á10-year treasury yields rose another +5% extending last week gains.┬á#InflationFears┬áin focus on energy pricing surging and supply chain woes. Strong┬á#Flight2Safety┬árotation with Growth down over -3% for Read More

Inflation Peaking? ­čśů

­čĺŞ┬á Peaking inflation?┬á#InflationFears┬ámoderating as August 12-month CPI rose only +0.3% M/M (still up 5.3% Y/Y). 2nd month of deceleration, but we’re still monitoring 2 main questions: (1) Does inflation recede? and (2) Could this be just a temporary reprieve due to┬á#COVID19┬ádelta? ­čçĘ­čç│┬á China concerns.┬á#ChinaTension┬áweighing on markets again as its┬á#COVIDRecovery┬ástalling from new delta outbreaks and more Read More

Cracks in App Store Ecosystem ­čô▒

­čśĚ Stalling recovery?┬á#COVID19┬ádelta surge moderating, but worries over┬á#COVIDRecovery┬ámomentum rising. Spending data shows slowing growth and company┬á#Back2Work┬áplans continue to get pushed back. ­čśČ┬á Risk appetite contracting.┬áMarket pullback not surprising given huge August gains and post another┬á#Crypto┬árise and fall. Overall, broad sector weakness as S&P 500 fell almost -2% last week. ­čô▒┬á App Ecosystem breach.┬áDistrict Court ruled Read More

Travel Hits Road Bump ­čÜž

­čÖůÔÇŹÔÖÇ´ŞĆ EU restricts US travel.┬áWeek started with Europe restricting US travelers due to rising┬á#COVID19┬ádelta cases. Travel and other┬á#COVIDRecovery┬ánames lower with another roadblock. Over weekend, Sweden went further and imposed US travel ban. ­čî│ Growth rotation.┬á#COVIDRecovery┬áweakness saw rotation into Growth names. In particular, Tech┬á­čĺ╗ and Communications ­čôí were strong. Overall Growth outperformed Value by almost +2%. Read More

Market has High, High Hopes ­čÄÁ

­čśů Decelerating COVID.┬áDomestic┬á#COVID19┬ádelta surge seems to be flattening. Investor optimism rising as fears of further restrictions or lockdowns hampering┬á#COVIDRecovery┬áease. Hopes bolstered with FDA approving Pfizer vaccine as well. ­čĺŞ Powell backs EOY tapering.┬áFed Chair Powell supports tapering Fed purchases this year. Given all-time market highs, investors expected Fed support pullback, but were encouraged as Powell Read More

Cyclical Pullback on Uncertainty

­čôë Markets sink on Fed tapering.┬áMarkets dropped in power hour Wed as Fed commentary indicated purchase tapering by end of year. Investors mostly shook off macro uncertainty in Afghanistan and ever increasing┬á#COVID19, but Fed minutes tipped the scales. ­čîŐ. 4th wave rising.┬á#COVID19┬ácases and hospitalizations approaching 3rd wave levels. (Deaths still lower, but also lagging indicator.)┬á#COVIDRecovery┬átrajectory Read More

Schrodinger’s Inflation? ­čśŞ

­čĺ¬ More strong economic data.┬áDespite rising case,┬á#COVIDRecovery┬ástill strong as 12-month consumer price index grew 5.4% again in July.┬á#InflationFears┬átug ‘o war with another high inflation month, but, at the same time, not accelerating. ´ŞĆ­čĺŞ┬á Yields keep rising.┬á10-year treasury yields up another +4% last week, but as much as +9% Thursday before Friday’s -5%. pullback. #RisingYields resurgence Read More

4-Day Streak Caps Green Week ­čŹÇ

ÔŤł┬á Stormy Monday.┬áPerfect storm Monday with┬á#CyberSecurity┬áhack, rising┬á#ChinaTension┬áand ongoing┬á#COVID19┬ádelta surge. S&P 500 fell -2% while 10-year treasury yields plummeted -8% to start week. ­čĄŚ Green recovery┬áMarket fear didn’t last as S&P 500 rallied +4% to finish week up +2%. Market sentiment got a boost from strong #earnings alleviating stalling #COVIDRecovery concerns. ­čî│ Strong growth rotation.┬áGrowth won Read More