October 24, 2022 | The UK’s ‘new – old’ Prime Minister Liz Truss was ousted, only lasting 45 days! A sign the era of free government spending without repercussions is ending.
Rishi Sunak is the top contender for the role. Source: thedailyshot, Wall Street Journal
...October 24, 2022 | Used car prices are down, a negative sign for future sales. Usually, when buying a new car, consumers trade in their existing car, & higher used car prices help to offset any out of pocket spending. ↓ used car prices = ↑ money out of pocket = ↓ cars sold.
...October 24, 2022 | Companies that supply goods tend to be more interest rate sensitive, so increases in rates have hurt them more. U.S. stock markets are skewed toward companies that make goods. However the U.S. economy is primarily a services driven economy. Source: Torsten Slok
...October 24, 2022 | And just like that, markets have tacked on another +0.25% of rate hikes.Markets are now expecting rate hikes by the Fed of: +0.75% in November, +0.75% in December, & +0.25% in February/March 2023. Higher rates have pushed down market multiples this year. Source: thedailyshot, TS Lombard
...October 17, 2022 | While headline inflation slowed marginally, the all-important Core reading came in hotter than anticipated, prompting a market selloff. Higher Core Inflation incited fears of entrenched higher prices, which could push a more aggressive Fed. Source: thedailyshot, BoA
...October 17, 2022 | …and on the other hand, monthly figures for inflation have been slowing from their peaks in the height of summer. Headline inflation over the past 3 months annualized has slowed to a rate of 2% year over year, which is at the Fed’s desired target. What happens next? Source: Quillintel, Gavekal
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