CWS Market Review – February 16, 2018

Feb 16 12:02 2018 Print This Article

“Sometimes the hardest thing to do is to do nothing.” – David Tepper

Don’t be fooled, the storm hasn’t passed. Sure, stocks bounced back this week, and that’s nice to see. But mark my words–the bears will be back.

The big news this week, outside the stock bounce, was the CPI report. On Wednesday, we learned that January had the largest increase in “core” prices in nearly 13 years. Is inflation finally on its way back? For now, call me a doubter, but we’ll look at what this means for us and our portfolios.

The bond market seems to be taking inflation seriously. This week, the 10-year yield broke above 2.9% for the first time in four years, and the one-year came close to cracking 2% for the first time in nearly a decade. Do you realize what this means? Things are starting to look…normal. Dear Lord! Compared to where we’ve been, normal is downright strange. Consider that in October 2014, the one-year was yielding a microscopic 0.09%.

Read More

About Article Author

Crossing Wall Street

As an experienced fund manager, Eddy Elfenbein created Crossing Wallstreet to help investors avoid the mistakes that separate successful investors made. The key to doing well on Wall Street is actually very simple: Buy and hold shares of outstanding companies. But too many investors never learn this valuable lesson. He gives investors his free and unbiased view of the market. Eddy analyze's dozens of companies every week and is always looking over income statements and balance sheets. He's spent several years collecting a list of the best companies to own. His buy list is on Crossing Wallstreet. All of the information on this site is free and unbiased.

  Categories:

Related Items

Markets are Eerily Calm

Overview: There is an eerie calm over in the capital market through the European morning today despite some ostensibly worrisome developments.  While many, like ourselves, expect UK Prime Minister May to survive a vote of confidence, it hardly clarifies the outlook.  The US government shutdo ...

PSP Invests in Australia's Agribusiness?

Kirk Falconer of PE Hub reports, PSP Investments acquires majority of agribusiness BFB:Public Sector Pension Investment Board (PSP Investments) has acquired a majority stake in BFB Pty Ltd, a Temora, Australia-based diversified farming business.Terms weren’t disclosed.The seller was U.S. resour ...

January 15, 2019

HIMIPref™ Preferred IndicesThese values reflect the December 2008 revision of the HIMIPref™ IndicesValues are provisional and are finalized monthly Index MeanCurrentYield(at bid) MedianYTW MedianAverageTradingValue MedianMod Dur(YTW) Issues Day’s Perf. Index Value Ratchet 0.00 % 0.00 % ...

Agency MBS: Time to Rethink Prepayments

As interest rates rose in the U.S. over the course of 2018, homeowners had less incentive to refinance their mortgages, and prepayments in agency mortgage-backed securities (MBS) declined. However, we think the market is now underestimating what prepayment speeds on lower coupon mortgages will be g ...

Morning News: January 16, 2019

The Supreme Court Just Handed a Big, Unanimous Victory to Workers. Wait, What? Bigger Gold Companies Still Aren’t Glitterati Goldman Says Rich People Will Drag Down the U.S. Economy by Spending Less Netflix Raises Prices on All of Its Subscription Plans What Wall Street Didn’t Like About Wells ...

Tech Talk for Wednesday January 16th 2019

  StockTwits Released Yesterday @EquityClock Facebook $FB, one of the FAANG stocks moved above $147.19 completing a double bottom pattern. Hudbay Minerals $HBM.CA moved above $7.34 completing a Reverse Head & Shoulders pattern. ‘Tis the season for Hudbay Minerals $HBM.CA and other base metal ...

Macro Briefing: 16 January 2019

UK’s May faces confidence vote after crushing Brexit defeat: BBCEconomic headwinds increasing for US as gov’t shutdown drags on: NY TimesChina injects record amount of money into economy to support growth: CNBCDeath from opiods more likely than dying in car crash in US: USA Today Antarctica los ...

Cool Video: Brexit--Now What?

I joined Wilf Frost, and Sara Eisen on the CNBC set at the NYSE shortly after the House of Commons delivered an unprecedented defeat to UK Prime Minister May.  Catherine Mann (Citi) and Christopher Smart (Barings).  The guests generally agreed that a delay in Brexit was likely.   Here is a ...

TFMR Podcast - Tuesday, January 15

With TF 19 Comments | 9 Likes If you're new to TFMR or simply in need of a reminder, please take the time to listen to this podcast today as we review again our history of dealing with price manipulation and the CFTC. The biggest news of the day was the failure of the Brexit vote in parliament ...