Back in February, I summarized a few potential recession signals. In that commentary I also stated;
“However, I’ll start to get really concerned when this ISM Purchasing Manager’s Index drops below 50, which would round out a trifecta of recessionary signals.”
Today, it was announced that the ISM Manufacturing PMI has contracted with a reading at 49.1 (below 50 indicates contraction). Continue reading “Final Shoe Drops”
Last week the Federal Reserve announced it would cut interest rates by 0.25%. This is major news because it signals the end of the “tightening” cycle and is the first rate cut since the Great Recession fallout. I wrote about the stock market’s action during rate cutting cycles a few weeks back here.
Here’s another great chart showing market performance during the last two rate cutting cycles.
Continue reading “Painkillers Are Not Cures”
Within my email inbox I’ve created a folder where I store anything interesting I come across. Today, I’m sharing a couple of those interesting market stats with you. Continue reading “Interesting Market Stats – June 2019”
The stock market is experiencing quite a rally this month. So, I thought it would be interesting to take a look at the last five bear markets to check (a) if rallies have been common within past bear markets, (b) how long bear market rallies typically last, and (c) the average magnitude of bear market rallies.
Executive Summary: Every single one of the last five bear markets going back to 1973 included at least one rally of 10% or more before the market fell further. The average bear market rally since 1973 has been about 15% and lasted about 1.5 months on average. The rally we’re currently experiencing has produced about a 12.1% increase over the last three weeks.
Continue reading “Bear Market Rallies in Context”