It's the beginning of trading in the month of October and the markets have seen a steady decline. This is one of the more difficult market environments we've seen. Jonathan Ruffer, one of the greatest investors of whom you have never heard, recently wrote, “(i)n the forty-five years I have been an investor, I cannot recall a more dangerous period than today.”
We had some positive feedback on our myth-oriented update, which inspired one reader to ask we theme an update on Ulysses, the James Joyce classic, not the star of Homer’s Odyssey. So, I went to the library and checked out a 30-year-old edition that appeared to have never been opened.
Formidable Asset Management (“Formidable”) has closely followed Flux Power Holdings (NASDAQ: FLUX) as part of our fundamental research; click here for our September 2021 piece.
We look at the situation facing the Fed as the market anxiously awaits comments from Jackson Hole. With student debt forgiveness and the misnamed Inflation Reduction Act renewing fiscal stimulus, can the Fed engineer a soft landing? We also analyze the divergence between the favorable technical setup versus stretched valuations. Finally, we recap the most recent round of meme stock mania which, thankfully, we watched from the sidelines.
In a market that makes about as much sense as August having an extra day, we examine the reasons for the strong equity returns in July and the incongruent views the market currently has on rates versus earnings expectations. We also discuss the squeeze consumers are feeling as savings rates decline and credit card debt expands.
Investors felt a little like Milhouse in July because despite a deluge of bad economic and inflation data, equity markets still posted strong returns. We will look at both the news flow and the market’s reaction; and where it might all go from here in this Milhouse-inspired update.
After a brief hiatus, Will and Adam return to talk about the market’s welcome recent rebound. Is it a head fake or will the bad news is good news narrative continue? Higher inflation and restrictive Fed policy have the potential to head butt investors, but the technical set-up remains favorable.
As referenced on our recent podcast, there is a modicum of excitement around Top Gun: Maverick. The original is iconic, in part due to its legendary soundtrack, including Danger Zone, by the unofficial king of soundtracks, Kenny Loggins.
As referenced on our recent podcast, there is a modicum of excitement around Top Gun: Maverick. The original is iconic, in part due to its legendary soundtrack, including Danger Zone, by the unofficial king of soundtracks, Kenny Loggins.
Are equity markets still in the danger zone? Join Will, Adam, and Kenny Loggins (well, two of the three) as they discuss the brief bear market, what is fueling the recent rebound, and whether we are in for more turbulence. Can the Fed engineer a soft landing, or will it crash and burn? Be our wingman as we explore these topics and more.
