Bonds and Bullion are soaring after the ugly JOLTS and weak manufacturing data this morning. Spot Gold soared back above $2020. The precious metal has only ever been higher than this on seven days in history…
Investors are shunning the real estate sector again, as headwinds from high rates show no sign of abating.
Property stocks are back among the year’s worst performers. They have plunged 22% since early February, with the threat of recession returning to the top of worries for market participants already calculating the fallout for funding costs from Silicon Valley Bank’s collapse and preparing for rates to remain elevated for longer.
In 2005, years before the subprime mortgage crisis kicked off the Great Recession and led millions of Americans to lose their homes, Larry McDonald was a vice president at the infamous now-defunct global financial services firm Lehman Brothers.
Record inflation, trouble on Wall Street, a hemorrhaging bond market … And a wave of corporate layoffs to start off 2023 …
Mortgage rates fell sharply Thursday after a government report showed that inflation had cooled in October, prompting a decline in bond yields.
The U.S. Federal Reserve raised interest rates Wednesday by 75 basis points for the fourth straight meeting while hinting at a potential slower pace in the future as the central bank continues to try to tame multi-decade highs in inflation.
The stock market has long been the go-to choice for people looking to invest their money. But that could be about to change as a younger generation enters the scene.
The Fed’s next crisis is already brewing. Unlike 2008, where “subprime mortgages” froze counter-party trading in the credit markets as Lehman Brothers failed, in 2022, it might just be the $27 Trillion Treasury market.
Stocks fell in choppy trading on Thursday as investors weighed several key earnings reports and kept an eye on the bond market, where Treasury yields continue to climb.
In a market environment where the only hope left is a central bank pivot away from rate hikes and back to QE, any slight detour by any central bank in the west is now put under a microscope with excitement as if stocks are about to be saved. The Bank of England’s minimal intervention in long term gilt purchases to stave off a collapse in the UK pension system recently had investors buzzing with dreams that this was the beginning of a pivot by other central banks back to stimulus. This is not the case.