Well the bears certainly won this month. Between a dawning realization the Federal Reserve plans to maintain higher interest rates for longer and a looming government shutdown affecting millions of federal employees, you cannot help but wonder what politicians are thinking. We know what investors are thinking…time to take some profits off the table….or is it?
Never underestimate the fickleness of Wall Street. The irrational exuberance that gripped Wall Street through the month of August courtesy of a developing bubble in everything AI (artificial intelligence) coupled with the hope of interest cuts in the 4th quarter, has given up the ghost. Not withstanding the historical, generally negative, performance of markets in September .....
We had a cornucopia of factors affecting markets this week. In no particular order, we believe investors reacted with mixed emotions over the auto strike, spiking inflation, rising oil prices, and slightly improving economic activity in China. In Canada we note the rally in bank stocks this week that got no love from earnings last month and pray it is not a dead cat bounce. Speaking of no love .....
Investors continue to fret over rising economic stats fearful it will lead to more rate hikes. Having said that, the BOC stood pat with promises of more rate hikes should inflation rise up again. We cannot help but think there is at least one more before year end and forget about cuts in the first quarter of 2024. Canadians were caught off-guard by the surprise 39900 new jobs in August with most of those positions in full time jobs. It certainly offset .....
August proved to be a bumpy ride for investors as they seesawed their way through rising bond yields, and somewhat volatile stock markets. Ten-year US bond yields breached 4.3% before .....
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