Just another interesting week with the S&P 500 climbing above 5950.
It would seem we are all the way back. It is never that easy.
Walmart announced better than expected earnings, but warned that future price increases were coming due to tariffs.
Moreover, Moody’s reduced the rating on US debt from Triple A to Double A Plus based on the amount of debt and interest payments facing the US government.
Longer term bond yields on US Treasuries moved up above 5%.
It is about time - we will have to deal with debt.
It appears Congress can't slow
down spending. Treasury Secretary Scott Bessent termed it an backward-looking indicator.
News was not all negative as indicated by the markets rising last week.
The inflation indicators were lower than expected and the employment numbers came in better than expected.
The ability of analysts to predict what is coming is almost laughable.
You have everything from a complete bear market coming and the S&P 500 falling below 4000 to expectations of yet more record highs.
I have been far too conservative in my opinions.
Maybe my vintage is just showing.
Becoming that grumpy old man that only sees the negative.
I would laugh at that but I am starting to wonder.
We did see the President negotiate some rather spectacular trade deals with Middle East countries last week.
Earnings have been tempered, but there are plenty of warning signs.
The fact that tariff negotiations are making progress is helpful.
I am always concerned when it comes to government promising and never delivering.
We are witnessing the reduction in EV sales as tax rebates are on the chopping block.
Universities suffer from a loss of students as the cost of a college education is coming under scrutiny.
The only real constant is change.
That is the problem for Baby Boomers adapting and we are the ones with the cash to invest.
The Mag 7 have all come roaring back.
Buying the dips has worked for short-term traders.
The volatility is an opportunity, but not for the faint of heart or one who doesn't pay constant attention.
For me it is about finding those companies outside the limelight.
There are all sorts of old-line manufacturing companies like Dow that have been ignored and have not moved with the market.
These types of companies fit my fondness for dividends.
Middle America companies that don't import may find favor.
As a country, we may start looking for quality over price.
I will believe that when I see such.
I do know that I have learned the hard way that as it relates to tools, I don't take cheaper.
We are essentially in a period of wait and see.
We have so many things that must work.
We have tariff talks, tax bill, and a budget.
Anyone of these could cause much more real worry than a slight reduction in the bond rating.
