Blog

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July 9, 2019

Earnings season kicks off again this week with PepsiCo announcing its Q2 earnings on Tuesday July 9. The food and beverage giant beat Wall Street’s expectations in Q1, leading to a rally that saw the company’s stock price hitting all-time highs in April. Since then it has set higher lows and higher highs and looks ready to retest June’s all-time high of $135.

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July 3, 2019

Last time we looked at the Fed’s recent switch to a more dovish stance and examined what a series of rate cuts and/or the resumption of Quantitative Easing could mean for the US equity markets. We highlighted the geopolitical landscape, in which growth is slowing, trade tensions between the US and China persist and President Trump seems to want to play a game of competitive devaluation with his trading partners.

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June 26, 2019

Traders have a saying: You don’t bet against the Fed. What this basically means is that it doesn’t matter what the charts say, it doesn’t matter what geopolitical factors are at play or whether analysts and pundits are screaming “overbought” and “reversal” from the rooftops; if the Fed decides to pull the right levers, the S&P will continue going up. It’s as simple as that. And up it did go last week after Chair Powell announced the Fed’s decision to leave rates unchanged but signaled that the case for a rate cut was growing stronger.

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June 21, 2019

Fed Chair Jerome Powell left rates unchanged following June’s FOMC meeting. Despite equity markets reading this as a good sign, sending the S&P 500 back up to all-time highs, it may be far from business as usual. Beginning his address to the assembled press by confirming that inflation is running below the Fed’s 2% objective, Chairman Powell cited several concerning “headwinds” to the Fed’s goals of full employment and steady growth.