As we kick off the first trading week of 2024, let’s take a closer look at the U.S. dollar and its potential impact on the broader market. I often discuss the U.S. dollar to gain insights into how it might influence equities and fixed income. Examining the daily chart of the U.S. dollar, it’s clear […]

In today’s short discussion on gold, I aim to cover two key points. Firstly, I’ll share my outlook on the multi-year price target for gold. Secondly, I’ll explore a strategy to generate yield, addressing a common concern about gold’s lack of dividends compared to stocks and other assets. Critics rightly point out that gold doesn’t […]

Today, I want to shed light on a crucial aspect of market dynamics: the recent emphasis on market breadth expansion. This metric gauges the number of stocks moving in sync with an index or a specific stock, a factor considered essential for sustained market growth. To break this down further, a key player in this […]

It’s time to put the November 2023 stock market rally into perspective because I’m seeing investors make the mistake of getting too bullish too fast. For all I know the rally can certainly squeeze a bit higher, but ultimately high interest rates will slow down the economy. What’s important to note about the November rally […]

We all know that technology stocks, over a long period of time of growth, tend to do quite well and generate a lot of alpha.  So I wanted to give you some perspective of this as we slowly begin to round off the rest of 2023, and look forward to 2024. This is the perfect […]

This may seem like an overly simplistic point to make, but I believe it’s crucial when it comes to understanding asset allocation: the importance of volatility. Looking at a chart I created comparing the S&P 500 (stocks) and Bitcoin (although it doesn’t have to be Bitcoin in particular, just any volatile asset), I immediately notice […]

I’ve noticed that insurance companies have been particularly bullish for the past couple of months now. Why? Well, the reason insurance companies tend to do better in an environment of higher interest rates is because they can lock in higher yields to allocate the premiums they receive. For example, when looking at a company like […]

Hey folks, I wanted to take a second to remind everyone of the reward-to-risk we see in the equity market. Looking at a basic chart of the S&P 500, you’ll quickly notice that it hasn’t done anything in two years. And it’s remained flat since February of this year. In fact, I wouldn’t be surprised […]

I wanted to take a moment to clear up confusion and clarify some things about the yield curve, and what it means at this juncture for the stock market and other risk assets. When looking at the yield differential between the longer-term yields (10-year Treasury note) and the 2-year yield, you’ll see an inversion of […]

The calamity in small caps continues to unfold. But before I do a deep dive into this in relative terms, there’s something extremely important to be aware of: the absolute charts of the Russell 3000. Looking at the chart, I find that things are making a lot of sense right now. The economy is not […]