The US announced Q2 2021 current account deficit grew to $190 billion or 3.3% of GDP, its largest since Q2 of 2007 from a downwardly revised $89 billion prior and compared to forecasts of $191 billion shortfall. Reduced surpluses on services and on primary income mostly offset by reduced deficit on secondary income.
Morgan Stanley’s chief investment officer Mike Wilson on Bloomberg Wednesday issued a sobering warning on another day of record highs saying US stocks are overbought and risks a correction due to rising interest rates. He added bull markets tend to overshoot a little bit in the short term, any kind of pullbacks will probably be bought.
The Dow just had the worst 1st quarter in 124 years. The S&P 500 has not been down in these three successive months since 2008. What does history tells about the stock market from here?
Yves Mersch, senior member of the Executive Board of the ECB on Monday warned that asset prices are currently at very elevated levels. This comes at a time near all time highs in many global stock markets despite elvated risk.
The US announced its largest monthly fiscal deficit on record for February at $234 billion, worse than the $227B expected and the largest shortfall EVER for any single month on record and from a $215 billion gap a year earlier.
France’s market watchdog Autorite des Marches Financie (AMF) sees as the number risk for 2018 a brutal correction of stock prices. Goldman Sachs Bull/Bear Index is at the highest in almost 50 years. Analysts preach this time its different, is it?
Argentina’s currency the Peso collapsed Monday 9% to an all time low against the US Dollar. Nervous investors continued to dump the Peso carry trade ahead of bond repayments and an IMF meeting in fear of another Argentine Currency Crisis.
After Crashing 666 points Friday the Dow Jones index crashed in the biggest points loss ever Monday, 1175 points.To put that in perspective, its a minor bump from a 30% rise. But as we said its all a matter of entry and leverage.
After Crashing 666 points Friday the Dow Jones index crashed in the biggest points loss ever Monday, 1175 points.To put that in perspective, the loss was ‘just 4.60%”. In 1987 the Dow lost 22.61% at the close. But as we said its all a matter of entry and leverage.
Professor Richard H. Thaler won the Nobel Prize in economics this week and he is nervous about the stock market, admitting he doesn’t understand it. He voiced similar tones to Bill Gross yesterday calling them ‘Fake markets’.