Launch Failure

Launch Failure

  This week’s indicator is all about thrust. In the physical world, thrust is the force that moves an object, such as a rocket, through the air. It takes a lot of force, generated in a short amount of time, to get something like a rocket into space. If the rocket...
Reversing Course

Reversing Course

  July 28th, 2023. That was the day the S&P 500 index reached its highest level of the year (so far). Since then, the market has tumbled. As of this writing, the S&P 500 index is down roughly 7% from its summer high. After two months of a down market,...
The Return of Rising Rates

The Return of Rising Rates

  Short-term rates are on fire. The 2-year Treasury rate—a rough proxy for where the market thinks the Fed is headed with interest rates—rose to its highest level in 17 years this week. This is significant because sharp increases in short-term interest rates have...
Getting Expensive

Getting Expensive

  They say valuation—like beauty—is in the eye of the beholder. But we can still objectively value the stock market by comparing it to another asset, and that’s the goal of this week’s featured indicator. Specifically, the indicator compares stocks to a safe...
Stingy Stocks

Stingy Stocks

  The equity risk premium is something that has been talked a lot about recently in the financial world, mainly because it dropped to its lowest level in 14 years last month. This is concerning because it has the potential to pose a significant challenge to the...