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Tag: Pete

101 posts tagged as "Pete"

The Scene of the Climb

Jul 12, 2021

By Pete Biebel, Senior Vice President

We don’t need a detective to explain how well the U.S. stock market has rewarded investors in recent months. We’ve all witnessed the progression of record highs in the major averages. The footprints in that track higher show evidence of just two brief stumbles that arrested headway along the path, one of which came just last week.

The averages were flat-ish through the first two sessions of the week,

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Bridge Over Troubled Waters

Jun 28, 2021

By Pete Biebel, Senior Vice President

The market was more than a little troubled after the Fed meeting a week-and-a-half ago. The sudden new possibility that the Fed might be forced into tightening its monetary policies sooner than advertised roiled the waters. The Thursday/Friday loss late that week resulted in the Dow Jones Industrial Average (DJIA) and the S&P 500 Index (SPX) having their worst week in months.

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What, Me Worry?

Jun 14, 2021

By Pete Biebel, Senior Vice President

Through the winter months, the bond market exhibited obvious and increasing concern about the threat of inflation. In February and March, the yield on the benchmark 10-Year Treasury Notes rocketed higher from 1.00% to a bit over 1.75%. That was a huge increase in just two months-time, and the impact of the suddenly higher rates was clearly visible in the tumbling prices of growth stocks as well as in the new-found strength in “value” stocks,

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If the Shoe Fits…

Jun 7, 2021

By Pete Biebel, Senior Vice President

One old idiom that seems to be a good fit for the market’s current state of mind is “waiting for the other shoe to drop.” That saying apparently dates back to the early 1900s and originated in boarding and rooming houses of the time. When an upstairs neighbor dropped one of their shoes, a second unwelcome thump was sure to follow. The implication of that mindset is that an expected and inevitable event is about to occur;

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Objects in the Mirror May be Larger Than They Appear

May 17, 2021

By Pete Biebel, Senior Vice President

On Thursday and Friday, as the market drove up and away from the early week carnage, it could look back at the damage and be thankful that it hadn’t gotten any worse. Through late-Wednesday, the S&P 500 Index (SPX) was already showing a 4% loss for the week. The NASDAQ Composite Index (COMP) was down about 5 ½% at that point, and the Russell 2000 Index of small-cap stocks (RUT) was in the hole by more than 6%.

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The Secret’s Out

May 3, 2021

By Pete Biebel, Senior Vice President

Have you heard? Economic activity is accelerating. People are spending money again. Unemployed workers are finding jobs. Restaurants, bars and sports arenas are packing in the patrons. Vaccinated people are hugging one another. Happy days are here again. So why did the market just have its dullest week of the year?

It’s true, in a week that featured an FOMC policy statement,

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Not All News is New News

Apr 26, 2021

By Pete Biebel, Senior Vice President

One way that market watchers try to get a sense of the market’s mood is by assessing how it reacts to news. A healthy market will respond enthusiastically to good news and pretty much just ignore bad news. Conversely, a market that is unable to rally on good news is probably going to be in trouble if bad news comes along. It’s probably actually more accurate to say that the watchers assess how the market reacts to better-than-expected news and worse-than-expected news.

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Out on a Limb

Apr 19, 2021

By Pete Biebel, Senior Vice President

An already extended market ventured a bit further out on its limb again last week. The promise of the sweet fruits of a rebounding economy has tempted the market’s appetite and has inveigled investors to stretch even further out on the valuation branch. Leafing through last week’s economic reports, there are many reasons for the expansion of that budding optimism: The increase in Retail Sales in March was much larger than expected;

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Everything’s Coming Our Way

Apr 12, 2021

By Pete Biebel, Senior Vice President

Some of you boomers will recognize that as the title of a song by the band Santana from back in the olden days. It struck me as an apt description of how the market sees the coming economic impact of the post-COVID, fiscally reinvigorated economy. In addition to many of the nation’s spenders having already been fully vaccinated, the country has been showered with billions of dollars of free money fiscal stimulus.

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Sticking the Landing

Mar 29, 2021

By Pete Biebel, Senior Vice President

The major averages went through a lot of gymnastics on their way through last week, a week that ended with two winning indices balancing a couple losers. Prices alternately leapt higher with the flexibility of an acrobat and then tumbled lower with the grace of a rock. A couple midweek stumbles dropped the averages to what would be their lows of the week by Thursday morning.

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