So much for a raging bull market running through the summer.
The Standard & Poor’s 500-lstock index fell back from 4400 to below 4350.
With much of the market’s growth due to a handful of tech stocks, you had the NASDAQ index climbed 16% last week.
The argument will continue as to where we are headed.
Last week, UK raised its effective Fed rate by 50 basis points to fight inflation that is higher in Europe than in the US.
We also had Fed Chairman Powel testify that further rate increases are possible should inflation not abate.
So much for a pause and then a move down.
If that wasn’t enough food for thought, we had a revolt by the Wagoner group turning on its backers in Russia.
What that will mean for Ukraine is being debated?
Moreover, we have a whole new technology taking over in the conflict with Russia using drones to fight the fight.
These drones are cheap and they have devastating consequences.
The ability for any side to take land back is becoming a stalemate.
It is important to note that a wounded Russia may be a real problem.
How will China react?
What will the impacts be on crude production?
We have hopefully learned that sanctions don’t work.
Now we hear that one of the Fed regional presidents is looking to push further regulation versus increased capitalization to maintain strength in the banking system.
I am not a big fan of more government through regulation.
It doesn’t have a great track record.
The regulators didn’t see the collapse of SVB right under their nose.
So here we sit almost on top of July 4 with summer in full swing.
Most call these, the lazy hazy days of summer.
Last week’s events seem to call that into question.
We have a new candidate running for President almost by the hour.
The news cycle is full of story after story about troubling situations both socially and economically in this country.
I find it all interesting but I am an outlier.
I continue to look for value and dividend return.
I picked up a stock this last week that is in advertising. Not what you might think, as it is in the billboard business.
It goes to show you that there are so many variables.
Everything does not have to be consolidated into a handful of tech stocks.
There is much out there that can be rewarding and it isn’t associated with Artificial Intelligence.
