To The Moon

Stocks closed lower on Tuesday (19 Sep 2023), while bond yield climbed to its highest levels in years. Fed two day September meeting is under way. We have seen the lowest number of monthly housing starts since June 2020. This has raised fears that there would not be enough supply to bring down the home prices. Canada has shown hotter-than-expected inflation, this give rise to the possibility of another rate increase later this year (maybe sometime in November 2023). Market is not expecting a rate increase in today (20 September) meeting. S&P 500 fell by more than 0.2% with Dow and Nasdaq Composite both in the red as well. The fell was across the board. Nine of the S&P 500's 11 sectors lost ground, led lower by energy and consumer discretionary shares. Most actively traded contract

Oil prices are now up over 30% since mid-June. $WTI Crude Oil - main 2311(CLmain)$ reaches $92.43, a record high in 2023.$Brent Last Day Financial - main 2311(BZmain)$ has risen from around $72 to $95.To learn more about oil prices, you can click How to Gain From 25% Upside & 24h Quotes of Oil Futures?But the markets believe the rate hike cycle is over and that Fed will start to cut rates in 2024.data from cmegroupWhy do surging oil prices won’t affect rate hike decision?Oil prices account small part for core CPIMORGAN STANLEY: “.. a 10% increase in oil prices .. adds 35bp to headline CPI for 3 months, but ju

When I came across the post on US regulator FDIC (see below). it sets me thinking. For sure, US banks or at least the regional ones are still in the woods; not out of it yet. HOW SO? Briefly, The U.S. government is looking to offload nearly $13 Billion of mortgage bonds it amassed from collapsed banks - Silicon Valley Bank (SVB) and Signature Bank following FDIC seizure of the lenders back in March 2023. The mortgage bonds were backed by long-term, low-rate loans made primarily to developers building affordable apartments. The bonds were part of the $114 Billion of assets that the Federal Deposit Insurance Corp (FDIC) picked up when it took over SVB and Signature in March 2023, this year. In April 2023, FDIC outsourced to BlackRock unit Financial Market Advisory to sell the securities port