The Fed Pivots to Fight Inflation

On December 15, 2021, the Federal Open Market Committee (FOMC) of the Federal Reserve System made a significant shift in monetary policy in response to rising inflation. The Committee accelerated the reduction of its bond-buying program in order to tighten the money supply and projected three increases in the benchmark federal funds rate in 2022, […]

Rising Inflation: Where Will It Go from Here?

Though all economists expect inflation numbers to rise in the near term, there are different views on the potential long-term effects. In March 2021, the Consumer Price Index for All Urban Consumers (CPI-U) rose 0.6%, the largest one-month increase since August 2012. Over the previous 12 months, the increase was 2.6%, the highest year-over-year inflation […]

Fed Forecast: Low Rates Ahead

Two Important Fed Policy Shifts. What you need to know. IMPORTANT DISCLOSURES Dightman Capital does not provide tax or legal recommendations. The information presented here is not specific to any individual’s personal circumstances. To the extent that this material concerns tax matters, it is not intended or written to be used, and cannot be used, by a […]

Reopening The Economy

This commentary touches on the following subjects.: Reopening the Economy C19 Infections, Hospitalizations, Deaths Vaccine Development Monetary Policy and Fiscal Stimulus The Bifurcated Stock Market It has been 84 days since the U.S. stock market started the C19 market sell-off.  During that time a great deal of new information has come forth to help us […]

REPO Market Update

Back in September the market received a warning from the REPO market where interest rates unexpectedly spiked higher.  Before describing what may be interfering with REPO market operations, I want to point out that signals from the bond market, while important, generally represent a time horizon of a year or more.  Unlike other technical, fundamental, […]

A Divided Market

There are clearly opposite views on the market right now.  After a fabulous day for all three indexes yesterday, not to mention the performance of many leading stocks, some commentators remain committed to the idea we are headed for a recession. A week ago, recession fears were plastered on the front pages of all the […]

Q1 2019 Market & Economic Review

U.S. stocks experienced a strong rally in the first quarter of 2019.  The biggest performance driver came from the Federal Reserve pausing their interest hikes.  Between 2017 and 2018 the Fed raised the Fed Funds rate approximately 8 times and until recently expected to continue raising rates into 2019.  The sell-off in Q4 was largely […]

Will Higher Interest Rates Derail Stocks?

Continued economic growth has led the Federal Reserve to raise the Fed Funds rate to 2.25%.  This is the biggest issue facing asset markets right now even though the rate remains well below levels that led to recessions twice during the last 18 years.  For that reason, I believe the Fed is going to be cautious […]

Trade Jabs & Big Tech Snafus

2018 has turned out to be a completely different investing environment from 2017. I have been reminded of debt market issues I thought I would not to have to address until 2019-20, beginning with interest rates. We remain in a low interest rate environment, well below levels we saw before both recessions we experienced earlier […]

Trade Negotiations & LIBOR Spike

Another round of volatility hit stocks this week, but current support levels remain, and volume has been tamer. The Nasdaq 100’s outperformance YTD remains intact suggesting tech investors are still committed to the sector. It’s one thing to see stocks under pressure but the recent spike in LIBOR (the rate banks lend to each other […]