The extended stock values around the world, created by too much Central Bank and Government financial support, makes them prone to react to news be it bad or good in a more extreme way. As we said a couple of days back, given the liquidity often it’s a matter of switching between sectors based on the latest news trail but Black Friday turned into Red Friday as markets reacted to the news of a potentially dangerous new virus strain – now named the omicron strain. This was an dis-quieting wake-up call.
In the past we have seen dramatic V-shaped reversals, so it’s a question of being patient and waiting for what unfolds in the early part of next week. Often during holiday periods, we do see the market makers develop trap moves on low volume and low liquidity.
The other question testing markets is their belief that The Fed will step in to prevent market falls, as they have done consistently over recent years. But the new take on inflation, as represented by Powell’s acceptance statement – which referred to inflation management as a key priority suggests more limited room for manoeuvre. And horror of horrors, what if the FED does not protect investors, well then, the over cooked markets are due for a significant correction. Valuations are simply not justified on current metrics.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Omicron Day - Black Friday or Red Friday? Market Update 27th Nov 2021 [Podcast]
I had a visit from David Llewellyn-Smith from MacroBusiness and Damien Klassen from Nucleus Wealth and Walk The World Funds. We recorded a discussion on some of the underlying drivers behind the economy.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Unscrambling The Macroeconomic Omelette With David Llewellyn-Smith And Damien Klassen [Podcast]
My regular Friday afternoon chat with Journalist Tarric Brooker. His slides this week tell a pretty sorry story! You can follow him on Twitter @AvidCommentator
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
And Now The Cracks Are Opening: With Tarric Brooker [Podcast]
In today’s show we look at some the latest developments in the digital finance space against the latest economic news.
First American consumers — the U.S. economy’s main engine — showed little hesitation on spending last month despite the fastest inflation in three decades, setting up the economy for a year-end growth spurt. Purchases of goods and services, unadjusted for changes in prices, increased 1.3%, the most since March, the Commerce Department said Wednesday. Even after accounting for higher prices, spending still exceeded projections in a sign that consumers started their holiday shopping early.
Jerome Powell of course has been renominated to lead the Fed. One factor to consider is the potential impact on digital currencies. In fact. Powell appears to deliberately avoid the central bank digital currency (CBDC) hype, despite many other central banks pushing hard for CBDCs. He consistently splashes cold water on that idea. Given the benefits the US gets from the US Dollar as global reserve currency, this perhaps symbolizes a break with globalist interests in favour of American banking interests.
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Digital Finance Analytics (DFA) Blog
In This Inflationary World, Where Are The Digital Chips Falling? [Podcast]
My latest Friday afternoon chat with journalist Tarric Brooker covers monetary policy, inflation, politics, and of course his famous slides! You can find him at @AvidCommentator on Twitter,
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
The Alarm Bells Are Ringing: With Tarric Brooker [Podcast]
Like it or not the shadow of inflation continues to cast a long shadow over the markets and the economy. No surprise then that Wall Street lost ground on Wednesday as surging consumer prices fueled fears of a longer-than-expected wave of heightened inflation. As a result, all three major U.S. stock indexes were in negative territory, extending their losses and adding to Tuesday’s sell-off which snapped the S&P 500’s and Nasdaq’s eight-session runs of all-time closing highs.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
Go to the Walk The World Universe at https://walktheworld.com.au/
Well, the interesting times continued this week, with US markets strong to the end of October, on strong results, despite some wobbles from big tech, and despite more weak economic news. And here, the lack of moves by the RBA on Friday implies that its Yield Curve Control – at least on the short end – is now over. Worth noting, they owns 64% of the April 2024 bond. In fact, the RBA might drop or amend its yield target for the as early as Tuesday’s meeting – but I suspect they will wait.
The latest edition of our finance and property news digest with a distinctively Australian flavour.
CONTENTS
00:00 Start 00:18 Introduction 01:48 Inflation Risks 02:30 US Market Review 06:25 Oil 08:40 Gold Still Hobbled 11:33 US GDP and Economic Data 12:15 ECB Sees Inflation 20:40 China Evergrande Pays More Interest 24:20 Coal Futures And China 26:11 Japan Slowing 27:45 Australian Market 31:00 RBA Loses Control 34:00 Crypto – Whales Supply Shock 36:38 Conclusion and Close
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
The Halloween Trick or Treat: Market Update 30th October 2021 [Podcast]
Leith van Onselen writes for MacroBusiness as the Unconventional Economist. Leith has previously worked as an economist at the Australian Treasury, Victorian Treasury and Goldman Sachs. He has a strong background in economic policy and financial sector regulation. Leith holds a Bachelor of Commerce (Honours) degree from Melbourne University and a Graduate Diploma of Applied Finance and Investment from the Securities Institute of Australia (now FINSIA).. Leith can also be found on twitter: twitter.com/leithvo.
The latest in my Friday afternoon discussions with Journalist Tarric Brooker, who shares some of his recent research and slides on the economy, Evergrande, US Households, and much else besides. Things are getting really interesting – especially the vexed question of inflation, stagflation or deflation.
Tarric is @AvidCommentator on Twitter.
Go to the Walk The World Universe at https://walktheworld.com.au/
Digital Finance Analytics (DFA) Blog
Things Are Now Getting REALLY Interesting! - With Tarric Brooker [Podcast]
