🤔 Are we close to a reversal?

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Markets

US Futures Waver Before Earnings Rush; Bonds Gain (3 minute read)US equity futures wavered as investors await key earnings reports from big Wall Street banks. Bonds advanced, led by UK gilts which benefited from speculation that controversial tax-cutting plans would be revised.

European Shares Extend Gains On Hopes Of UK Fiscal Plan Reversal (3 minute read)European stocks rose on Friday to extend gains from the previous session amid hopes that U.S. inflation may have peaked around 8 percent and would trend lower in the coming months. Investors also cheered reports of potential fiscal plan U-turn. Media reports suggest that the British government will announce a U-turn on elements of its 43-billion-pound package of unfunded tax cuts that sparked turmoil in financial markets over the past few weeks.

The Strong Dollar Is A Risk To Corporate Profits (6 minute read)The strong dollar remains a risk to corporate profits and asset prices as the impact on the global economies grows. While many commentators argued the dollar would go bust due to the excessive debt levels in the U.S., such has hardly been the case. In 2022, as the U.S. economy is the “cleanest shirt in the dirty laundry,” the dollar rose sharply. So why is a strong dollar so problematic?

Disinflation Might Be upon Us - Are we close to a reversal? (4 minute read)When I do my chart magic on the bond market, it tells me that we’re pretty close to a reversal. I might point out that it is pretty much the consensus at this point that interest rates are going to go higher. We haven’t had any magazine covers on the bond market, but we’ve had two on the dollar, and if you think the dollar is going to sell off, it’s probably because interest rates went lower. Correspondingly, sentiment in the stock market is at zero. I repeat—zero. There is nowhere to go but up from here.

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Investing

Market MoversMost active stocks: Apple (AAPL, $142.99, +3.36%), Intel (INTC, $26.42, +4.30%), Microsoft (MSFT, $234.24, +3.76%), Verizon (VZ, $34.60, +2.02%), Cisco (CSCO, $40.61, +3.41%)

Will Taiwan Semiconductor Manufacturing Be a $1 Trillion Stock by 2030? (4 minute read)If semiconductor industry leaders can be believed, global chip sales are headed toward $1 trillion a year by 2030 -- up from about $600 billion expected in 2022. That would represent an annual compound growth rate of 6.6% if the $1 trillion milepost is reached in 2030. TSM is the leader in chipmaking, boasting a 26% market share (when excluding memory chips). Despite that rosy long-term outlook, it's been tough going for the stock as investors fret over a slowdown in consumer electronics sales and the U.S. imposing new export bans on chip sales to China.

Rising bond yields: what happens to bonds when interest rates rise (12 minute read)Bonds and especially gilts have taken a hellavua beating recently. Rising bond yields have inflicted losses shocking enough to put some people off for life. And that’s a shame because bonds and equities share an important characteristic: they’re likely to be more profitable in the future after a sharp price fall than after a gain. To explain why, let’s investigate what happens to bonds when interest rates rise.

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Money

Life Insurance: Let’s Separate the Facts From Fiction (4 minute read)The past two years have spurred a heightened awareness in families who have realized that they may not be as financially prepared for the future as they had hoped. We know that there is a substantial gap in coverage for many Americans, with 106 million adults saying they need life insurance or more of it. This can be due to typical procrastination or a misunderstanding of the cost and process of purchasing a policy.

What the Money is For (5 minute read)Anytime things start getting tough in markets, as they have been over the past few weeks, I think back upon The Commodore and his son’s untimely death. Not because this story reminds me of stocks or investing, but because it doesn’t remind me of those things. It doesn’t remind me of my portfolio or my company or my career. In fact, it does the opposite. It reminds me how precious our time is. It reminds me that there’s so much more to life than money.

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