Concentration

Concentration

  My daughter loves strawberry milk, but when she makes it, she uses way too much strawberry syrup. You can barely taste the milk because it’s so concentrated. It kind of reminds me of today’s stock market. But instead of syrup, a few giant companies dominate the...
The Big Split

The Big Split

  There’s a growing divide in the United States. No, I’m not talking about the Grand Canyon in Arizona. Or politics. But rather Wall Street, in the stock market, and it’s being driven by mega-cap stocks. This week’s featured chart highlights the performance of...
Getting Cheaper

Getting Cheaper

  We saw a lot of good news on the inflation front this week. The May Consumer Price Index (CPI) showed a broad cooling in prices, and then we found out that the Producer Price Index (PPI) unexpectedly declined by the most in seven months last month. The big...
Bucking the Trend

Bucking the Trend

  Hikes are out, and cuts are in. That’s the direction the world’s Central Banks have been moving lately. This week, the European Central Bank and Canada joined Sweden and Switzerland in cutting their key policy interest rates. That makes four major...
Economists vs Normal People

Economists vs Normal People

If you were to ask a random person on the street their thoughts on inflation, they’d likely say, “It’s ridiculously high right now.” But ask that same question to an economist, and you’d probably get a different answer. They’d say something like, “It’s come down...
Return to Normal

Return to Normal

  This week’s chart highlights a significant milestone for stock investors: the VIX Index is back to pre-pandemic lows. The VIX, often called the “fear gauge,” measures market volatility implied from S&P 500 options. When it rises, it means investors expect...