Showing posts from May, 2022

The wild week we've had and what is to come.

 Hello friends, no, it's not Jim Nantz, but all I can say is what a crazy last couple of weeks we've had. With monetary policy under the microscope, all I can say is things will get worse before they get better. As of Sunday at 10pm, Dow, S&P, and Nasdaq futures are trading lower at -1.5%, -1.8%, and 2.3%, respectively. With inflation now surpassing 10% and the Fed finally raising rates a 50 basis points, the bull market seems to be over. We've seen this hardest in the technology industry. For a while, cheap cash had bolstered these stocks, and the cash-burning practices were overlooked; now, stable and growing cash flows will be what is hot. For many (including myself), a non-zero rate environment is an uncharted territory, and thus the traditional knowledge we've acquired over the last 20+ years will go to the wayside. I'm not here to be the doomsday fanatic at the corner of Government and Bay Avenue, yelling the end is near, but caution now must be taken in t