"What is important that will constrain how far the Fed can go is the extreme level of debt. At a record $83 trillion of public and private debt, if the Fed goes as much as what is priced in, we are talking about $330 billion being drained out of the economy for debt servicing charges or about 1.5% out of GDP." -Dave Rosenberg*WHAT IS THE QUOTE ABOUT ?The quote above thematizes the FEDs current interest rate course. As you can see, the overall debt levels publicly, as well as privately are extremely high. This combined with interest rate hikes lead to a lot of financing issues. This mostly afflicts growth stocks, since they normally have a lot of debt and close to no earnings to pay their interest, but also close to every other stock, raising the question how far the FED can go in hiking in

$SPDR S&P 500 ETF Trust(SPY)$ Fed's Harker sees 'lack of progress' on inflation, expects aggressive rate hikes ahead TLDR: • "We are going to keep raising rates for a while," the central bank official said in remarks for a speech in New lersey. "Given our frankly disappointing lack of progress on curtailing inflation, I expect we will be well above 4% by the end of the year." • The latter comment was in reference to the fed funds rate, which currently is targeted in a range between 3%-3.25%. • The expectation is that the Federal Open Market Committee, of which Harker is a nonvoting member this year, will then take rates a bit higher in 2023 before settling in a range around 4.5%-4.75%. • "Sometime next year, we are goi

"The increase in money supply is the real factor that creates an artificial economic boom. It is likely that people such as Jerome Powell know this, but they are unable to admit it because it would cause havoc in the economy."-Alasdair Macleod WHAT DOES MACLEOD MEAN? In Alasdair Macleods opinion, the high inflation we are currently experiencing was not just caused by the Ukraine war, but also by the incredible increase of money supply that happened through central bank policy. This has in Macleods opinion to the latest boom in stocks, we have experienced since the corona pandemie until last year. While many would suggest that this is not the case, there are a lot of charts backing his thesis. For once, there is the strong correlation between the S&P500 and the amount of money (M2) whi

The Fed is taking extreme measures to bring inflation down, approving five interest rate hikes since March with more planned for the rest of the year and possibly through to 2023. But the fast pace of tightening from the Fed has been largely unprecedented, and even Federal Reserve officials themselves have been uneasy about how little time they have between each interest rate hike to understand what effect tightening is having on the economy. All those unknowns are reason enough to stay cautious in today's market, according to Solomon.~ The signals that he gave in this interview are huge. Trade safely 

$NIO Inc.(NIO.SI)$It's going downtrend

Bitcoin Price The leading cryptocurrency, Bitcoin, is consolidating near the $19,500 level, with a trading volume of $27 billion in 24 hours. Bitcoin has increased by 2% in the last 24 hours. CoinMarketCap currently ranks first, with a live market cap of $375 billion. Bitcoin found early support near $19,440 and has since rebounded to trade near $19,600. The BTC/USD pair has also surpassed the 50-day moving average, signaling a bullish trend. A break below $19,440 might send BTC to the previous triple bottom support near $19,200, while another breach could send BTC to $18,900. On the upside, resistance is still located near $19,650. If the price exceeds $19,650, investors will likely consider buying until $19,950. Ethereum Price The current price of Ethereum is $1,333, with a 24-hour tradi

$SPDR S&P 500 ETF Trust(SPY)$Nice really

Such an unusual year for the markets Such an unusual year for the markets. All the investors were educated in a way we would expect a negative correlation between fixed income and stocks. We were tough that if we wanted to decrease our portfolio volatility we should balance our portfolio with fixed income investments, since the are offering "Fixed Income". But for the last 18 months, both, stocks and bonds have lost a lot of value (bonds started to decline in valuations in September last year) Why is the reason behind it? Many analysts are saying that bonds lost in value is due to an exponential increase in interest rate, so many investors would flee from Fixed income investments, but where did all that money go? that money usually goes to equity investments. But now, all that money flew

With the good news of the Bank of America's financial report, the UK withdrawing the tax cut policy, the market sentiment has stabilized, and the technology stocks that have fallen deeply have ushered in a rebound. The Dow rose more than 550 points to return to the 30,000 mark. The S&P rose more than 2.6%, breaking above its 200-week moving average. The Nasdaq jumped more than 3.4%, while the Hanan index rose more than 2.2%. After Chinese leader Xi Jinping declared in the report of the 20th National Congress that education, technology and talents are the foundation of China's development into a strong country, and BYD expects profit growth in the third quarter to be as high as 365%, electric vehicle stocks have benefited, and Chinese car manufacturers have benefited. The new force Sanx

$SPDR S&P 500 ETF Trust(SPY)$Keep it up

After the Bank of England announced it will end its bond-buying on Friday as scheduled, the International Monetary Fund lowered global growth estimates, and inflation statistics indicated rate hikes are likely to continue, market volatility increased again last week. As the Nasdaq index dropped to its lowest level in two years and the technology, telecoms, and real estate industries all saw fresh 52-week lows. Trade safely 

The market has been a turbulent one so far in October. Despite the Federal Reserve's best attempt to bring down prices, the data released just 2 days ago shows that inflation came in at a whopping 8.2 percent which was significantly higher than expected, it is a sign that things might continue getting worse with another substantial rate hike plans less than three weeks away. However, what's even more concerning isn't that people are now hoarding cash at the highest level in 10 years, but instead the fact that inflation is still not going away with the reality that an even stronger dollar could trigger the next crisis. With stock markets on a rollercoaster amid Federal Reserve rate hikes, recession fears, elevated inflation, and escalated tensions between Ukraine and Russia, investors will

$SPDR S&P 500 ETF Trust(SPY)$ History's longest bear market -- in the early 2000s -- lasted 929 days, and the shortest, in spring 2020, lasted just 33 days. Since 1928, the S&P 500 has experienced 21 bear markets. The average length of a bear market is 388 days. Focus on the long term. Trade safely

$Amazon.com(AMZN)$Keep it up

A closely watched measure of US consumer prices rose by more than forecast to a 40-year high in September, pressuring the Federal Reserve to raise interest rates even more aggressively to stamp out persistent inflation before it becomes entrenched. Inflation makes workers poorer (work more for less) and hikes make investors richer (make more with less). Central banks need to hike rates until demand destruction stops inflation.. After inflation cools down, central banks can pivot back to monetary easing and inflating assets. If you hold cashflow producing value stocks or have cash & hedges to buy the dips, you get richer. Trade safely 

$DJIA(.DJI)$ U.S. stocks closed sharply higher Thursday in a head-spinning reversal, after investors decided that fresh evidence of high inflation wasn't as bad as it initially appeared. it was the first time that the Dow Jones Industrial Average both fell at least 500 points and rose at least 800 points in a single trading day. The whipsaw moves were reminiscent of the early stages of the Covid-19 pandemic, another time of deep uncertainty about the economic outlook. Trade safely

According to Mark Zandi of Moody's Analytics, The U.S. will see inflation cut in half within six months. His call, which comes on the cusp of another key inflation report, hinges on oil prices staying at current levels, supply chain problems continuing to ease and vehicle prices starting to roll over. Everything else, Zandi believes, can stay the same. "CPI, the consumer price inflation, will go from something that's now about a low of over 8% year-over-year to something close to half that of 4%," the firm's chief economist told CNBC's "Fast Money" on Wednesday. Trade safely