In a concerning departure from the norm, overnight markets are witnessing unsettling sell-offs, followed by perplexing rallies during regular trading hours. This topsy-turvy trend contradicts the typical pattern where most gains occur outside regular hours.
What’s even more disconcerting is the suspicion that prominent market players are offloading their positions onto retail investors, who often are unaware of the risks involved. This disquieting situation is underscored by Berkshire Hathaway’s recent behavior, as they’ve taken a step back from the stock market, selling off for four consecutive quarters, including a $5 billion offload in Q3. Such caution from a market giant raises a stark red flag.
Adding to the sense of urgency is Trepp’s report, revealing that the delinquency rate on Commercial Mortgage-Backed Securities (CMBS) surged by a worrying 24 basis points to 4.63% in October, marking the highest level since the pandemic-induced lockdowns. These developments are a cause for immediate concern, as they paint a picture of financial turbulence that demands prompt attention and a vigilant response.
Notice how overnight markets keep selling off and rallying during regular trading hours. Normally it's the opposite, with most of the gains happening outside of regular hours.
The big players are unloading onto retail who is more than happy to buy.
— Financelot (@FinanceLancelot) November 8, 2023
Berkshire Hathaway has taken a step back from the stock market, being net sellers for 4 straight quarters — offloading another $5B in Q3.
Sign of caution. pic.twitter.com/PBGhTxoqYk
— Kurt S. Altrichter, CRPS® (@kurtsaltrichter) November 8, 2023
— Win Smart, CFA (@WinfieldSmart) November 8, 2023
#recession … #GFC2 US #Corporate #Debt Bubble edition
The similarities to 2008 keep piling up! https://t.co/pGq2sbQ4Qq
— Invariant Perspective (@InvariantPersp1) November 8, 2023
This chart predicts rioting by January, latest.
The second sacking of Rome. pic.twitter.com/iuzJa6jS9p
— Mac10 (@SuburbanDrone) November 8, 2023