This has been a tough year in the market. Thankfully, the rally we predicted has occurred. We have seen negative results year-to-date even still, but it could be worse: you could have put your money with FTX.
There are many lessons to be learned in the shortest run ever as a Prime Minister of Great Britain, and I’m sure there will be books written that will take longer to read than Ms. Truss’ tenure. We are going to focus on two immediate lessons that deal with economics and how markets work.
The third quarter ended poorly last week in what has been a very frustrating year for markets. It begins to feel like it will never end; it always seems that way when the market finally hits bottom and starts climbing. Times like this remind us to focus on the fundamentals.
Federal Reserve Chairman Jerome Powell assured us last spring that inflation was transitory. He was wrong then, and he is wrong now. It is as if Mr. Powell, his fellow Fed governors, and the approximately 400 doctorates who work for the Federal Reserve are all fit with blinders.
You have heard of the madness of crowds… on Tuesday this week, we witnessed the madness of computers. A few years ago, we talked quite a bit about the phenomenon of computer-driven trading. It is still there, and every once in a while, it rears its ugly head.
