To The Moon

Hello everyone! Today i want to share some macro analysis with you!China’s GDP has grown 13 times since 2001Since China joined the World Trade Organization in 2001, its GDP has increased 13-fold (Chart 2). However, the Shanghai Composite Index has grown by only 1-fold (Chart 3). In contrast, during this same period, U.S. GDP has grown 2.6-fold (Chart 1), while the Dow Jones has increased more than 4- fold. Will China’s stock market eventually catch up with its GDP growth? Chart 1 Source: TradingView Chart 2 Source: TradingView China’s GDP grew the most when the world entered the Covid lockdown While the rest of the world was in lockdown, with most of us working from home and shopping online, China’s manufacturers were supplying global demand. As shown in Chart 2, China’s GDP experienced it

Why Oil Fell Despite War? $WTI Crude Oil - main 2406(CLmain)$ Which market is a better hedge when a geopolitical conflict started. I know many will say that it must be crude oil. Over the past 2 major conflicts, we could see that crude oil did not gain any momentum, in fact it came off. So which markets have reacted positively to all these tensions so far, and will continue to remain this way with future tensions?Follow me to learn more about analysis!!https://www.facebook.com/Weipedia/?ref=page_internal

Bank of Japan hiked interest rates for the first time in 17 years, the Japanese Yen instead of strengthening, it crashed. The Japanese economy is in the making with a higher inflation to come and a weaker yen. $Japanese Yen - main 2406(JPYmain)$ When a central bank increases its interest rate, its currency should appreciate because investors depositing their money will now earn interest. This should attract investors to buy into the yen, causing it to rise. However, the opposite has occurred since March 18th.What could be the reason the yen may continue to sink further despite potential rate hike in the future?Follow me to learn more about analysis!!https://www.facebook.com/Weipedia/?ref=page_internal

Inflation has dipped to its lowest point in two-and-a-half years, with unemployment holding steady below 4 percent for the longest time since the 1960s. Despite these positive economic indicators and the US economy defying recession predictions, a majority of Americans maintain a bleak economic outlook.“Most Americans," "are not just looking for disinflation”- a slowdown in price increases. “They’re looking for deflation. They want these prices to be back where they were before the pandemic. ... I hear that from my family.” - Lisa Cook, a member of the Federal Reserve's Board of GovernorsThat's particularly true for some of the goods and services that Americans pay for most frequently: Bread, beef and other groceries, apartment rents and utilities. Every week or month, consumers are remind

It is a 26-page transcript, and I have highlighted some of his key statements.Question:The rise in long-term bond yields, to what degree is that the planned action by the Fed at this meeting?Reply:As for the Committee, we are committed to achieving a stance of monetary policy that's sufficiently restrictive to bring inflation down to 2 percent over time. And we're not confident yet that we have achieved such a stance.As I mentioned, persistent changes in broader financial conditions can have implications for the path of monetary policy. In this case, the tighter financial conditions we're seeing from higher long-term rates but also from other sources like the stronger dollar and lower equity prices could matter for future rate decisions, as long as two conditions are satisfied.The first is

It is a 27-page transcript taken on 20th September, and I have highlighted some of his key statements.On Energy Price: "Energy prices are very important for the consumer. This can affect consumer spending. It certainly can affect consumer sentiment. I mean, gas prices are one of the big things that affects consumer sentiment. It really comes down to how persistent, how sustained these energy prices are. The reason why we look at core inflation, which excludes food and energy, is that energy goes up and down like that. And energy prices mostly don't contain much of a signal about how tight the economy is, and hence don't tell you much about where inflation is really going. However, we're well aware, though, that, you know, if energy prices increase and stay high, that will have an effect on

Key Highlights from Fed Chair – Jackson Hole Economic SymposiumThe venue, Jackson Hole providing a serene environment for focused discussions with the symbolic significance of retreating from the noise of financial markets to discuss broader economic issues. The primary purpose of the symposium is to bring together central bankers, financial experts, academics, and policymakers from around the world to discuss important economic and financial issues. The symposium serves as a platform for participants to exchange ideas, share research findings, and engage in discussions about current and future challenges facing the global economy.Following the transcript’s highlight:Although inflation has moved down from its peak—a welcome development—it remains too high. We are prepared to raise rates fu

4 issues that Michael Burry and Warren Buffett seeing that we aren’t1. China’s economic meltdown:Traders worry that weakness in the world’s second largest economy could affect the global outlook. China’s consumer spending, factory production and investment in fixed assets all slowed further in July from a year ago.2. Russia and Ukraine’s impact on inflation:Heightened geopolitical tensions threaten to raise food and oil prices across the globe. Russia’s invasion of Ukraine continues to stoke fears of increased commodity prices, global economic instability and uncertainty around security.3. US economy is slowing down:US economy is still showing signs of a slowdown. Shoppers have tightened their purse strings in the face of higher prices and borrowing costs, focusing on paying for necessitie

Key Facts on BRICS Summit in 2023BRICS, an emerging market group that includes Brazil, Russia, India, China and South Africa, represents approximately 40 percent of the global population and accounts for about 26 percent of the global economy. It will hold its 15th annual gathering, the BRICS 2023 summit, from August 22 to 24.Some key facts about the summit:• This will mark the first in-person BRICS summit since the COVID-19 pandemic broke out.• According to the government of South Africa, more than 40 countries have expressed interest in joining BRICS. So far, over 20 countries have formally applied to become new BRICS members, including Saudi Arabia, Iran, the United Arab Emirates, Argentina, Indonesia, Egypt and Ethiopia.• To establish an international power system commensurate with the

The Fed balance sheet shrinks by $1tn and aims to cut another $1.5tn from its balance sheet by mid-2025.During the initial phases of the Covid-19 pandemic, the central bank of the United States engaged in the purchase of trillions of dollars worth of government bonds and mortgage-backed securities. The aim was to provide stability to the financial system. However, since after the second half of 2022, the central bank adopted a strategy of allowing its holdings to naturally mature without initiating replacements.“Quantitative tightening” or “Fed shrinking the balance sheet” refers to the same thing. It is a process where the Fed takes steps to reduce the amount of assets it holds on its balance sheet, effectively decreasing the money supply in the economy.Its impact:• Interest Rates:One of