Michael Burry’s notable bearish bet against the stock market, which first made headlines in August, has been a rollercoaster for investors. At the beginning, his position was met with skepticism during the AI-driven summer market rally. However, it gained credibility as the S&P 500 experienced a sharp decline in late October. Recent developments, particularly the … Read more
The Federal Reserve’s aggressive interest-rate hikes are sending shockwaves through the housing market, raising concerns of a potential recession reminiscent of the 1980s. In a recent warning, Wells Fargo has highlighted the risks associated with the central bank’s commitment to keeping borrowing costs elevated until at least 2024 as part of its strategy to combat … Read more
In a shocking turn of events, the 10-year Treasury yield surged past the critical 5% mark on Monday, sending shockwaves through various financial sectors and leaving consumers anxious about the implications. This milestone, not seen in over 16 years, has raised concerns about its potential impact on mortgage rates, student loans, auto loans, and more. … Read more
Wholesale Inflation: In a startling turn of events, September brought an unexpected spike in wholesale prices, signaling potential trouble ahead for the U.S. economy. Wholesale Inflation rose 0.5% in September The Producer Price Index (PPI), a key indicator of inflationary pressures, rose by 0.5% during the month, surpassing the Dow Jones estimate of 0.3%. While … Read more
The anticipation is high as the Bureau of Labor Statistics is set to release the September jobs report on Friday morning at 8:30 a.m. ET. Analysts are expecting the report to reveal a continued slowdown in job growth in the United States. In August, the US economy added 187,000 jobs, but unemployment jumped to 3.8%. … Read more
In 2023, the USD/JPY currency pair has been on an impressive bullish run, gaining more than 14% since the start of the year. This remarkable ascent has been primarily fueled by soaring U.S. Treasury yields, driven by a hawkish Federal Reserve policy stance. However, the recent price action has shown signs of volatility, raising questions … Read more
In the ever-evolving landscape of the financial world, credit card default rates have emerged as a significant concern. Recent statistics reveal a startling trend: the default rates among the top 100 banks stand at a comparatively modest 2.45%, while the rest of the banking institutions are grappling with a staggering 7.51%. This surge in default … Read more
The mortgage market has been on a wild ride lately, with interest rates recently hitting levels not seen since the turn of the millennium in 2000. As a result, the demand for mortgages has plummeted to a 27-year low. In this blog post, we’ll delve into the current state of the mortgage market, analyzing the … Read more
On September 20, 2023, the Bank of England made an unexpected announcement that sent ripples through the financial world. The bank decided to hold the current interest rate at 5.25%, marking the first time in two years that rates had not been raised. This decision came in the wake of inflation data for August, which … Read more
The U.S. economy has defied expectations, maintaining an unemployment rate under 4% for nearly two years. However, this is not merely a pandemic-induced anomaly but rather a complex storm that has been brewing for decades. Labor shortages are now evolving into a long-term labor crisis, with far-reaching consequences for the American workforce and the economy … Read more