Just a week ago, people were cheering yet another guru predicting mind-blowing growth for stocks like #NVIDIA (Nvidia’s market cap will soar to $50 trillion—yes, trillion—says early investor in Amazon and Tesla). Then, why were they holding their breath so anxiously when the stock was dangerously heading fast towards the…
Tag:#stocks
THE GREAT LIQUIDITY AVALANCHE – FROM MAG7 TO EVERYTHING ELSE?
Every avalanche always starts with that last small drop of a snowflake that makes the whole pack of snow too heavy to stick on the mountain. Since the #FED and fellow Central Banks joined the BOJ in the great money-printing crusade to “save the world” from COVID-19 in March 2020,…
HOW ARE FINANCIAL MARKETS GOING TO REACT IF JOE BIDEN ENDS UP DROPPING OUT OF THE PRESIDENTIAL RACE?
The current market structure, though robust on the surface, maybe one of the most fragile in history. On one side, you have investors, both retail and professional, who tend to #FOMO into anything that rises (although professional investors call that the “momentum” strategy). On the other side, you have algorithms…
MEANWHILE STOCKS ENJOY THE HEAVENS, BANKS ARE GOING THROUGH HELL
It’s been some time since I first rang the alarm bell about the crisis unfolding in the Commercial Real Estate sector (#CRE) in the US. Banks’ risk departments were largely ignoring this crisis, an issue I highlighted in my previous post, ”The great paradox of CRE lending: while owners are…
*INDIA 2024 ELECTIONS SPECIAL* – MARKETS ALWAYS GET ELECTION RESULTS RIGHT, BUT INVESTORS DON’T
Author: Vijay ( @sainik636 on Twitter/X) Indian Elections are always a captivating spectacle. Given that it’s a multi-party democracy, predicting the WINNER & LOSER is a challenging game. However, there’s no shortage of psephologists, both professional & amateurs, who indulge in this exercise. Since 1991, the Results have been linked…
THE DANGERS OF FINANCIAL ENGINEERING AND, WHEN THAT IS NOT ENOUGH, ACCOUNTING FRAUD
I have to admit, yesterday was one of those days when I personally struggled quite a bit. While I was going through #UBS financial statements, finding something incredible (if not shocking) on every other page, #UBS share price was skyrocketing in the market (UBS Q1-24 RESULTS REVIEW – THE “LA…
IF YOU WANT TO BECOME RICH, THERE IS NO POINT IN TRYING TO TRADE A STOCK MARKET CRASH, BUT YOU SHOULD START PREPARING TO TAKE ADVANTAGE OF THE NEXT CYCLICAL BULL RUN THAT WILL COME AFTER
Last week ended with the #VIX closing at 13.49, well below its ~19.50 long-term average, while the CNN “fear and greed” index closed at 40 in “fear” territory. Warren Buffett disclosed his cash “war chest” grew to 189bn #USD and socials have been fantasizing all over the weekend about the…
THIS LAST BURST OF QUANTITATIVE EASING WILL ACCELERATE THE OVERALL MONETARY IMPLOSION ALREADY UNFOLDING
Yes, quantitative easing is what just happened under everyone’s nose. The #JPY interventions of this past week effectively injected about 100 billion #USD into the global financial system that previously was not circulating. Why? Because #Japan MOF selling reserves to fetch #USD that can then be sold in the market…
EXPLAINING AND SIMPLIFYING THE JPY (COUNTERINTUITIVE) “DOOM LOOP”
Last week, I ventured a bit too deeply into the plumbing of the global financial system with the article “THE JPY (COUNTERINTUITIVE) DOOM LOOP – THE MORE JPY LOSES VALUE, THE MORE LEVERAGE IS FORCED TO COME OFFLINE, THE MORE THE JPY LOSES VALUE” and I apologize to all those…
THE NEXT CRYPTO ALTCOINS SEASON WILL BE A SPECTACULAR DISPLAY OF FOMO
All the talk about #crypto as of late has been mostly around #Bitcoin and the #Bitcoin ETF that, like it or not, has been the most successful ETF launch ever. A while ago, I explained what the #Bitcoin ETF meant for the whole #crypto industry (“WHY A BITCOIN ETF WILL…