Global trends are signaling a potentially more pronounced inflationary period than experienced in the past, leading to increased scrutiny of central bank strategies amid a surge in the cost of living, amplified by heightened interest rates and geopolitical uncertainty.
OpEx is over and we could be on the verge of the greatest market crash we've seen in almost 100 years.
Hold onto your butts. t.co/DJJhdiQ8Pv pic.twitter.com/fKNrRIeDXC
— Financelot (@FinanceLancelot) October 23, 2023
Goldman PM: "HFs sold stocks for 11 weeks in a row, the longest stretch on record"
JPM PB: "HFs stay bearish… selling stocks at a fast clip"
BofA PB: "HFs have been buyers for three straight weeks" pic.twitter.com/JHZ65wrbTP
— zerohedge (@zerohedge) October 23, 2023
United States 10-Year Bond Yield 5% THREAD Watch
US Treasury 10Y Yield Climbs Past 5%, Mortgage Rates Near 8% (Highest Since 2000)
Biden’s excessive federal spending has resulted in severe inflation, causing The Fed to hastily increase rates. The 10-year Treasury yield exceeds 5%, and the 30-year mortgage rate hits its highest since 2000 at 7.63%. Despite the economic strain, Biden seeks an additional $100 billion for Ukraine and Israel. Continuous reckless spending by the administration may lead to a predicted recession in 2024.
Pardon my French pic.twitter.com/iYivJDKtOR
— Russian Market (@runews) October 23, 2023
OUCH! US 10y yield topped the psychological level of 5% for 1st time since 2007. pic.twitter.com/1SrZsrdtr8
— Holger Zschaepitz (@Schuldensuehner) October 23, 2023
For what’s worth, the top 7 largest tech stocks are currently staring down from a scary double-top technical formation.
My 2 cents:
Either interest rates must decline drastically from current levels or the valuations among these stocks are primed for a meaningful reappraisal. pic.twitter.com/e40YTZzy3w
— Otavio (Tavi) Costa (@TaviCosta) October 22, 2023
Big banks are quietly cutting thousands of employees, and more layoffs are coming, per CNBC.
— unusual_whales (@unusual_whales) October 23, 2023
More than half of global stocks are now trading below their 200 Day moving averages pic.twitter.com/EiKEWppqRK
— Barchart (@Barchart) October 23, 2023
Shares of US firms that miss profit estimates are falling by the most in four years: Bloomberg Intelligence pic.twitter.com/MmROClQ5T9
— Lisa Abramowicz (@lisaabramowicz1) October 23, 2023
Global Trends Suggest Inflation Will Be Stronger Than in the Past
In the wake of aggressive monetary tightening, the cost-of-living crisis has exploded, casting doubt on central bank strategies. With markets reeling from heightened interest rates and geopolitical instability, debates intensify over inflation goals, asset purchases, and policy coordination. Most economists predict a shift away from past tactics, but persistent challenges spotlight glaring flaws in global financial approaches.
The Federal Reserve’s Policies Threaten the American Economy and Financial Markets
The Federal Reserve’s actions have put the U.S. economy at risk. After inflating the M2 money supply post-pandemic, they contracted it sharply in 2022, mirroring conditions before the 1987 market crash. Their focus on lagging indicators rather than monetary signs threatens a severe downturn. The economy is on the brink, and the Fed’s oversight may push it over the edge.
twitter.com/FinanceLancelot/status/1716394415046975547
October 24th, 2008 pic.twitter.com/ai3Yj98UYP
— Financelot (@FinanceLancelot) October 23, 2023
Overnight credit markets freezing in 2008 t.co/MJgRzIoxcj pic.twitter.com/N93tfO8Btn
— Financelot (@FinanceLancelot) October 23, 2023