John Tierney

Summary We expect equities to settle into a trading range after last week’s hot CPI and PPI reports until investors develop new conviction about the timing of rate cuts. Both Adobe and Alphabet sold off last week on reports that OpenAI is now targeting Google Search and Adobe’s Creative Cloud. Clearly, the potential for AI-driven […]

Summary Markets get another indication of the outlook for rate cuts when the Personal Consumption Expenditures (PCE) report arrives on Thursday. Nvidia (NVDA) surprised on the upside yet again – clear evidence that the investing community still does not understand the AI phenomenon. Consumers remain strongly inclined to spend on experiences rather than stuff, but […]

Summary A currently popular meme chart shows a startling match between Nvidia’s (NVDA) recent rise and that of Cisco Systems (CSCO) in 1999-2000. Cisco later collapsed over 80% when the dot-com bubble burst. NVDA is no CSCO. While CSCO was mostly selling to companies financed with VC cash without a business model, NVDA caters to […]

Summary We review the key macro themes emerging from Q1 earnings season. No companies are talking about recession risks now. But their outlooks are also mostly consistent with sluggish 1.5-2.0% GDP growth. Consumers are spending on staples and discretionary services but are still not buying goods. AI hardware may be red hot, but the broader […]

Summary The good news is the Federal Reserve (Fed) has all but promised to deliver three rate cuts in 2024 even if inflation remains slow to drop. The bad news is this was already priced into the market. With the 2Y Treasury yield still trading above 4.5%, there is little visibility now on whether or […]

Event Details The South Orange Symphony presents its spring concert on Sunday April 28 at 3pm at the South Orange Middle School auditorium.

Summary Last week’s selloff in the semiconductor sector most likely opens opportunities to establish positions in the AI hardware sector. Commodity chip producers will continue struggling. The Federal Reserve (Fed) may not be cutting rates for now – but we see zero likelihood it will raise rates. And if the economy slows, we expect rate […]