The SPY ETF, mirroring the S&P500, has experienced its most significant #inflow to date subsequent to the recent shift in Federal Reserve policy.
This notable development underscores the substantial capital that was previously held in reserve, primarily by retail investors awaiting the mentioned policy pivot. The present market upswing will reinforce household financial portfolios, increase wealth effect, and potentially stimulate increased consumer spending.
JPMorgan’s Marko Kolanovic said in a note on Wednesday that investors should favor cash over stocks in 2024 as it appears unlikely that the Federal Reserve will rapidly cut interest rates.
Investors, according to Kolanovic, are putting too much weight into the idea that an economic recession will be avoided in 2024. That view, combined with the fact that equity valuations are rich, credit spreads are tight, and volatility is “unusually low” suggests to Kolanovic that now is not the time to be piling into stocks. …
Powell created a massive risk-on rally, except in China!
Is there any light at the end of the Chinese tunnel? Not really right now.. More -> https://lnkd.in/dPtzTzFV
Inflation risks are mounting. Supply chain pressures collapsed from highs as the world came out of lockdown, but are now rising again.
The fracas in the Red Sea is a reminder how brittle supply chains are in an era of heightened geopolitical tensions But it’s not only supply chains. Leading indicators for wages, profit margins, house prices, food and several others show that disinflation will soon peter out, and inflation is set to begin rising again next …
FT: Recession fears in Europe punish risky borrowers with higher yields 📈📈📈
Credit spread with US triple C issuers is highest since 2009 A powerful rally in risky financial assets has left behind #Europe’s weakest corporate borrowers, with #recession fears persisting in the region just as optimism grows about a US “soft landing”. Europe’s riskiest corporate #bonds now have an average yield of 19.66 per cent, according to an Ice BofA index …
FT: Recession fears in Europe punish risky borrowers with higher yields 📈📈📈 Read More »
Does this recent stock market rally feel right to you? Does it feel very speculative? Why did the FED reverse interest rate guidance so significantly in such a short time frame?
Charles Hugh Smith answers those questions from his perspective in this article. In it, his analysis does a good job describing the extreme “FINANCIALIZATION” process I’ve also been detailing in my Investment Letters and posts. While he points to the limitations to “FINANCIALIZATION” that he believes inflation presents, I’m more concerned about mounting credit problems …
In my experience, this week was one of the most #ashtonishing ever.
The last reason will concern you: 1. S&P 500 $SPX hit its most #overbought level yesterday since September 2020. 2. Dow hits #ATH and stands at its most #overbought level since January 2018. 3. Nasdaq hits #ATH, pushing short selling funds into liquidation. 4. Russel2000 gained 124 points in one week, #biggest gain since November 2021. 5. Apple in yesterday’s All Time High close, …
In my experience, this week was one of the most #ashtonishing ever. Read More »