Extreme Sentiment

Extreme Sentiment

OVERVIEW   Last week, U.S. stocks tumbled to their lowest level since November 2020. The S&P 500 fell 2.9% to close the week and is now down 25.2% from its January 3rd closing high. The Dow Jones Industrial Average also dropped 2.9% for the week, and the...
Shedding a Few Pounds

Shedding a Few Pounds

  The British pound—the currency of the United Kingdom—was the star of the show of the financial world this week. It made the news because the leaders of the U.K.’s new government laid out a plan to cut taxes and pay for it by borrowing roughly £45 billion over...
More Puts Than Calls

More Puts Than Calls

  Let’s say you’re an investor, and you want to place a bullish bet on the stock market. One way to do this would be to buy a call option. The value of a call option goes up when the price of a stock (or stock index) goes up—and it does so at a faster rate than...
Revisiting the Low

Revisiting the Low

OVERVIEW   The S&P 500 index reentered bear market territory last week with a 4.65% weekly decline. The Nasdaq Composite, down more than 30% this year, fell 5.07%, and the Dow Jones Industrial Average dropped 4%. Foreign stocks had a rough week as well....
Fun With the Fed

Fun With the Fed

  The Federal Reserve held its sixth FOMC meeting this week. One interesting thing to note from the meeting was that the Fed continued to raise its forecast for the fed funds terminal rate. Shown on the chart above, the terminal rate is the peak spot where the...