Equity Storm Watch Is RED on the S&P 500 and RED on the Russell 2000
We’re starting to hit full stride on earnings season, and that’s good news for equities aiming to clear very low bars on profits and revenue. The 10-year bond is now at 4.6%, and there is almost no chance of a rate cut in May by the Federal Reserve. However, the more important story centers on whether the central bank will start to taper its Quantitative Tightening program next month and whether it will target short-term interest rates to attempt to reduce yields. My bet is they will.
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Dear Fellow Expat:
We are now streaking into a very busy few days of earnings, with General Motors (GM) surprising investors this morning. The last two days have been positive for the consumer cyclical sector, emphasizing the Detroit auto names. We are seeing Tesla (TSLA) remain in breakdown mode alongside the upstream energy and materials part of the market.
The question on everyone’s mind is how much higher interest ra…
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