The S&P 500 is down nearly 3% from its March 1st high, which has many investors concerned that this is the beginning of the markets early rejection of Trumponomics. I don’t believe that’s the case and I’ll explain the reasons. But, we are in for some further decline and I think it’s important to understand why.
Supply and Demand on the surface seems like a simple concept, but its influence can often be misinterpreted. There aren’t many indulgences better than a warm Krispy Kreme donut. Of course, my problem is I can’t eat just one; more like 3 or 4. Then I take a nap.
The market sold off over 2% this past Friday and then gained a little over half that back on Monday, only to lose all that again on Tuesday. What happened?
The consensus seems to be a combination of continued poor economic numbers and some Federal Reserve lieutenants leaking that our Central Bank, regardless of the mounting recession indicators, will raise interest rates soon.
And yesterday oil, both in crude price and oil stock financial’s, got clobbered. For over a year I've been writing about the danger of US fracker bankruptcies being another Shearson moment, but let's set that aside for now and focus on last Friday. What’s really going on?