@theMarket: Investors Await Fed WeekBy Bill Schmick, 03:20PM / Friday, April 28, 2023 | |
All eyes will be focused on May's Federal Open Market Committee meeting (FOMC) this week. Most investors are expecting another quarter-point interest rate increase, and there is an ongoing debate over the possibility of another one in June.
Some strategists believe that may be overkill. The fear is that the Fed could break something else if they do. Many already blame the Fed's rapid hiking of interest rates for the troubles within the regional bank area. The value of Silicon Valley Bank's U.S. Treasury bond holdings, for example, fell by billions of dollars as the Fed tightened monetary policy over the last year.
And the banking worries 0 Comments Read More >> |
The Retired Investor: Secret Behind Low Interest-Bearing Checking AccountsBy Bill Schmick, 04:48PM / Thursday, April 27, 2023 | |
The bankruptcies and financial contagion among regional banks have spotlighted a question point among many consumers. Why is it that banks are getting away with paying zero interest on billions of dollars in checking accounts?
The interest on savings accounts isn't much better. In a recent survey by Bankrate, a consumer financial services company, nearly 80 percent of U. S. savers say they earn less than 3 percent in their savings accounts. Today, with interest rates yielding between 4-5 percent (and inflation topping 7 percent), a mere 7 percent of Americans are getting the prevailing rates. What is worse, only a relative few are taking advantage of the opportunity to 0 Comments Read More >> |
@theMarket: Markets Mark TimeBy Bill Schmick, 04:11PM / Friday, April 21, 2023 | |
First-quarter corporate earnings are pouring in, and the results have been mixed. So far, the numbers have been good enough to keep the market from falling significantly, but not good enough to warrant further gains.
It is still early days, with only 15 percent of companies reported, but so far, the best I can say is mixed. The multicenter banks continued to surprise to the upside this week, while the regionals have been so-so but not as bad as some expected. Of course, the Silicon Valley Bank debacle did not occur until toward the end of the quarter, so much of the impact won't be known until the second quarter results are announced.
Tesla, one of the 0 Comments Read More >> |
The Retired Investor: The Boom in Pickleball.By Bill Schmick, 04:47PM / Thursday, April 20, 2023 | |
Pickleball is the fastest-growing sport in the U.S. for the third year in a row. It has taken the country by storm, thanks to its popularity among all ages. Industry experts expect to grow at an annual rate of 9 percent between 2023 and 2033.
The game was invented by three middle-aged fathers on vacation on Bainbridge Island in 1995 and named after the family dog, Pickles. Recently, my wife Barbara suggested we might find out what makes the game so popular. For those, like me, who have not played yet, the game is a cross between tennis, badminton, and ping pong. It is not difficult to learn and can be played almost anywhere. All you need is a paddle and a whiffle-like ball 0 Comments Read More >> |
@theMarket: Cooling Inflation Supports StocksBy Bill Schmick, 04:45PM / Friday, April 14, 2023 | |
Last month's inflation data came in the cooler. The dollar continued to decline, while stocks eked out some gains. Next up, first-quarter earnings results.
The money-center banks kicked off results on Friday. The first four banks to report — JP Morgan Chase, Citigroup, PNC, and Wells Fargo — were surprised by the upside. Next week, we will see how hard the beleaguered regional banks were impacted by the rush to move deposits to the bigger banks. Investors will be watching two key factors (deposits and loan demand) to determine if these banks are investible going forward.
On the macroeconomic front, the Consumer Price Index (CPI) came in 0 Comments Read More >> |
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