Jobs Report Supports Aggressive Rate Hikes

Posted on by The INO.com Team

The most recent jobs report supports aggressive Fed rate hikes, to reduce inflation, but other factors need to be resolved to solve the big global picture.

The Bureau of Labor Statistics released some welcome news today. 431,000 Americans became gainfully employed in March, and the jobless rate was within 0.1% of 3.5%, coming in at 3.6%. Economists polled had forecasted that over 500,000 jobs would be added. However, that has little relevance with today’s report indicating that the labor market in the United States is vibrant and strong. The strength of today’s report shows that America’s workforce is now only 1.6 million jobs, or 1% of the levels that existed before the pandemic. It must be noted that higher employment is a byproduct of a tight labor market that has had to offer higher wages to attract new workers.

This solid report will give the Federal Reserve the necessary data to continue to raise rates, most likely at a much more aggressive rate. However, the Federal Reserve will have a near-impossible mission to have a soft landing as they reduce the current inflation rate to an acceptable target rate which has been 2%. Continue reading "Jobs Report Supports Aggressive Rate Hikes" →

Stocks Have Worst Quarter In 2 Years

Posted on by The INO.com Team

The first quarter of 2022 was the worst first quarter since 2020 in the stock market. The DOW and S&P 500 closed down -4.57% and -4.95%, respectively, and the NASDAQ lost -9.10%. Some of the contributing factors to this rough quester were the start of a rate hiking cycle from the Federal Reserve, high inflation, and Russia's invasion of Ukraine.

The major indexes made a late-session rally to close out the week, with the DOW adding 139.92 points or +0.40% to close at 34,818.27. The S&P 500 rose +0.34% to 4,545.86, while the NASDAQ gained +0.29% to end the day at 14,261.50.

On a weekly level, only the NASDAQ and S&P 500 were able to stretch their weekly win streak to three with a gain of +0.65% and +0.06, while the DOW snapped its weekly winning streak with a loss of -0.12%. Continue reading "Stocks Have Worst Quarter In 2 Years" →

Potential Market Inflection Point Imminent?

Posted on by Noah Kiedrowski

Cautiously Optimistic

Commodity prices are soaring, the war between Russia and Ukraine is worsening, inflation is raging, and the Federal Reserve has begun increasing rates. The backdrop seems ominous; however, the market may be just one positive headline away from an inflection point to turn the tide in a positive direction.

Timing the market has been proven time and time again to be nearly impossible; however, what is possible is capitalizing during these correction periods and buying heavily discounted stocks. These correction periods are great opportunities for long-term investors via dollar cost averaging throughout these long stretches of suppressed conditions. As the best market days typically follow the worst market days, building stock positions and riding out the volatility has proven advantageous. Missing out on just a few of the best-performing days of the market in any given year can drastically alter investor returns and yield dramatically inferior results.

The Russian/Ukraine War

Conditions between Russia and Ukraine continue to worsen while the west slaps sanction after sanction on Russia for its aggression. However, per Bank of America, stock declines related to the conflict may have bottomed. Continue reading "Potential Market Inflection Point Imminent?" →

How to Hedge Against Inflation

Posted on by The INO.com Team

Are we headed into a period of stagflation? How will the Fed raise rates and taper this inflationary pressure? These are big questions with complex answers.

Kevin Simpson, founder and CIO of Capital Wealth Planning, and Gary Kaminsky, former Vice Chairman at Morgan Stanley, sit down with Melissa Frances to discuss the Fed, interest rates, and inflation.

How to Hedge Against Inflation on Magnifi by TIFIN

Watch the Full Interview at Magnifi by TIFIN

Melissa Francis
Welcome back to Magnifi by TIFIN. Today, we are talking about oil, China, inflation, the Fed, and the best strategy is to incorporate all of that into a portfolio to grow and preserve your wealth. Joining me now is Kevin Simpson, founder and CIO of Capital Wealth Planning and Gary Kaminsky, former Vice Chairman at Morgan Stanley, former Capital Markets Editor at CNBC. Gary is also an investor and a board member at TIFIN. Welcome to both of you. Let me start with you, Kevin. I don't know if you just heard Jeffrey Gundlach, he had a lot to say. Some of it was a little frightening. He was talking about the idea that we are heading into an era of stagflation. And he's not alone in that, but he does think that the Fed will continue to be very aggressive as that goes on. And even as we head into a recession, he thinks that they'll continue to raise rates and stay disciplined. Do you agree with that? Continue reading "How to Hedge Against Inflation" →

The World Is Not Ready To Go Green

Posted on by Tim Snyder

“The following is an excerpt from Tim Snyder’s “Weekly Quick Facts” newsletter. Tim is an accomplished economist with a deep understanding of applied economics in energy. We encourage you to visit Matador Economics and learn more about Tim. While there, you can sign up for his completely free Daily Energy Briefs and Weekly Quick Facts newsletters.”

A little clarity helps keep the truth intact!

On Monday, March 21, 2022, in an address to the Business Roundtable’s CEO Quarterly Meeting, President Biden made these comments, “Things are shifting. We’re going to - there’s going to be a “New World Order” out there, and we’ve got to unite the rest of the free world in doing it.”

It’s dangerous to try and speculate as to what he meant, but in retrospect, the comments were made against the backdrop of the Invasion of Ukraine by Vladimir Putin.

Was Biden boasting to his corporate supporters like GM, Apple, and Amazon and passing on some little glimpse of what he believes is about to come with Russia and maybe China?

Or was Biden sending a signal to NATO that when the initial Russian invasion is over, he believes Ukraine will fall quickly and new alliances will develop? Some nations will find themselves pitted against former NATO partners and committed to the Russians because of their vast energy resources? Probably both Continue reading "The World Is Not Ready To Go Green" →