Today's topics include the U.S. loses its AAA status, a list of countries with higher ratings than the U.S., when will the SPR be refilled?, consumer spending, fewer workers quitting their jobs, pricing in an AI premium, more on the magnificent seven, and some humor regarding the U.S. downgrade
The bank walk and the subsequent tightening of credit standards is continuing. It impacts small and medium-sized firms, many of which are not publicly traded. This will continue as long as banks offer paltry interest rates compared to market rates. This will not lead to another bank failure, but will impair profitability and keep lending standards tight, making credit hard to get for those who cannot bypass banks.
By just about any measurement, tech stocks are experiencing one of their best total return periods on record.
Today's topics include Dudley criticizes soft landing crowd, over half of Americans living paycheck to paycheck, impressive earnings don't impress investors, interpreting recession indicators, cash on the sidelines, El-Erian says expectations are too optimistic, another pause in September?, and issues mount in China
Q2 2023 earnings reports have started to come in. S&P 500 operating earnings are expected to decline in 2023, with a rebound later in the year and into 2024.
Today's topics include all in on the idea of a soft landing, one data point suggesting a hard landing, the drivers of lower inflation, housing's supply problem, the Treasury releases its quarterly refunding plan this week, could BoE follow ECB in halting interest on reserves?, stocks vs. bonds, balancing interest payments & interest income, and entertainment spending
ETFs have become a dominant force in U.S. trading since their inception in 1993.
Today's topics include BoJ's surprise move, getting back to 2%, what level creates tighter financial conditions? hint: not 5%, where is the slowdown?, AI bubble continues along, deconstructing "smart beta" funds, and back to 'no landing?'