More and more economic reports that China’s “zero tolerance” covid response policy is causing a major drag on business activity in China. In addition, the bursting of the property bubble several months ago, which accounts for about 30% of China’s Gross Domestic Product (GDP) is exposing the fact, that a great deal of China’s growth…… Continue reading China’s Slowing Economy
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Monday’s Bounce
The stock market staged a strong rally on Monday, May 23rd, 2022 on the news that JP Morgan bank has increased the amount of interest income it projects it will receive this year because of rising interest rates. Of course, that positive factor may be offset by the increasing level of loan defaults and loan…… Continue reading Monday’s Bounce
At The Bottom or More Pain Ahead?
Despite a late surge on Friday, the stock market had its 7th weekly decline. and the market indexes are close to breaking the closing lows of months ago. Is this the time to think about “dipping your toes into the market?” Maybe, but I don’t believe we have seen the panic selling yet that usually…… Continue reading At The Bottom or More Pain Ahead?
China plans to throw 3 Trillion Dollars to Save Economy
As China’s economy implodes because of the debt buildup over the years, which cannot now be sustained, combined with the covid lockdowns in the major cities, can they solve the potential collapse by creating more debt? It is looking like China’s economy has been built on unsustainable debt levels. In addition, the Chinese authorities are…… Continue reading China plans to throw 3 Trillion Dollars to Save Economy
New Lows Ahead?
After two days of market rally based on the hope that inflation forces might be subsiding, Target-TGT- reports disappointing earnings before the market opens, and declines almost 25%. At the same time the Dow drops almost 400 points at the opening for trading. All of sudden market participants wake up to the fact that inflation…… Continue reading New Lows Ahead?
Just a Thought
Over the weekend, I read a weekly newsletter which covers Warren Buffett and Berkshire Hathaway stock (1) They pointed out that Berkshire continues to accumulate shares of OXY ($64) at ever increasing prices. Today, May 16th, 2022 despite the stock market having a flat opening, with oil prices slightly lower, OXY made a new high.…… Continue reading Just a Thought
Inflation Peaking?
Despite high levels of inflation recorded early in the week, the markets staged a strong rally on Thursday and Friday, on the wishful thinking that inflation readings may be “topping.” Although many of the market averages are in oversold levels, despite the late week rally, still recorded its 6th losing week with the S&P Index…… Continue reading Inflation Peaking?
Powell Confirmed for Second Fed Term
I hope I am wrong, but I have the feeling that Federal Reserve Chairman Jerome Powell being confirmed today for a second term to head up the Fed for the next four years, is like being appointed Captain of the HMS Titanic on its maiden voyage. Good luck to Chairman Powell as he tries to…… Continue reading Powell Confirmed for Second Fed Term
Canary in the Coal Mine?
Is Elon Musk’s proposed $44 Billion leveraged take over of Twitter at $54.20/share, a 38% premium over its market price last month, a warning sign of a market top? Why is the richest American using mostly borrowed money to take TWTR private? Why is a major American bank lending such large sums of money to…… Continue reading Canary in the Coal Mine?
Blue Monday
May 5th, 2022 Stock and Bond markets are off to a very shaky start this week, with a probable 500 point Dow drop, and the 10 year Treasury yield rising to 3.18%, the highest level since late 2018. Remember yields move inversely with bond prices; as yields go up, bond prices go down. The scary…… Continue reading Blue Monday