Inflation has become the central topic in financial markets given its linkages to both bond and equity prices. It is also one of the most controversial and difficult-to-understand concepts. The Federal Reserve’s own model has been inaccurate for decades and they are now acknowledging this as they change their working assumptions. Therefore, we will not...
Orders for durable goods in January, a leading economic indicator, were up by 3.4%. This is the ninth month in a row the index is up. The increase was led by transportation orders, up eight of the last nine months. The growth comes in higher than the expectation of 1.1% and December’s increase of 1.2%....
Equities bounced back mid-week amid sector divergences. The S&P 500 was down 0.1%, balanced by declines in high growth stocks and gains in so-called value stocks. Rising interest rates put pressure on growth stocks nearly every day, although some days witnessed mid-day buying to limit the damage. The S&P 500 Energy sector was up 8.3%...
