NIFE News and Press, Direxion Fallen Knives From 09/22/22

Summary Goods in the pipeline have slipped back a bit below normal because many companies had ordered more than they needed when they were unable to get goods and are now overstocked. Thus, ports are no longer backed up. The supply chain is still messed up, but in a different way....

Summary In this chart-filled article, we're looking at the economic situation in the United States, starting with the pandemic in 2020. Then, we dive into the tricky situation the Fed is currently in as it looks to harm demand to fight inflation. Unfortunately, the economy is alre...

Summary The Fed was more hawkish, and the median dot sees a 125 bp increase in the target rate in Q4. The hawkish thrust was also evident in projecting that the target rate will remain higher for longer. The market still does not fully accept the Fed's message. The unemployment ra...

Summary The U.S. Federal Reserve delivered its third straight 75-bps rate hike on Wednesday. Based on the Fed's updated economic projections, the growth outlook is for a weaker economy over its projection horizon versus its June update. We know policy works with a lag, and inf...

Summary The Fed's forecast for rate hikes was more hawkish than expected. Even the usually implied volatility melt didn't help to lift stocks. The S&P 500 could probably fall to around 3,100. After several attempts to rein in the stock market, the Fed may have figure...

Summary Consumer spending strongly rebounded in 2021 following the lifting of 2020's government-mandated pandemic lockdown measures. The Consumer Expenditure Survey breaks down the average annual expenditures of U.S. household consumer units into major categories of spending. ...

Summary The median one-week performance of the S&P 500 from the close on 9/20 over the last ten years has been a decline of 95 bps, which ranks in just the fourth percentile of all days of the year. Extending out to look at the S&P 500’s median one-month performance...

Summary The Inflation Reduction Act includes a controversial 1% excise tax on share repurchase programs that goes into effect next year. Wall Street Horizon’s corporate event data show a downtick in total buyback announcements this year after a 2021 surge. Investors mus...

Summary After several years of steady growth and low inflation, policymakers now face a delicate tradeoff between bringing down inflation or sustaining economic growth amid heightened macro and market volatility. We expect the Fed to remain committed to aggressive rate hikes. ...

Summary In a time of uncertainty, we believe that quality is the key to investing in equities. But to consistently find companies that meet high-quality standards requires research, judgment and investing skill. In this paper, we identify the characteristics that can help guid...