As soon as the market opens yesterday, my phone was buzzing with stock market alerts. Bank ETFs are down dramatically together with crude oil down, 10-year treasury yield and US dollar. Gold is up understandably. It is flashing recession in the minds of investors. However, the Nasdaq is up a little bit early when marketContinue reading “What a roller-coaster ride!”
Category Archives: Economy
Is inflation good for the banks?
It depends on how fast is the inflation. When interest rate is too low, it is hard for banks to charge more on loans. However, if the interest rate is raised too fast too high to fight inflation, it pushed a lot of potential customers out of the borrowing market. For example, mortgage rate isContinue reading “Is inflation good for the banks?”
Is it finally a firm trend of disinflation?
Today is an interesting day in the US financial market. It’s like a breath of relief or a long-waited rain on a drought. 😊 The Federal reserve still raised the short-term interest rate by 0.25%, but this is a slowing trend. The hikes were 0.50% last time and 0.75% prior. Therefore, the financial market isContinue reading “Is it finally a firm trend of disinflation?”
Oil demand to peak in the next decade?
Exxon just reported record profit of $56 Billions in 2022. Some investment professionals suggested to invest in oil and gas companies because of the excellent stock market performance and dividends. Some investment professionals venting about Biden Administration’s tough stance on Fossil Fuel industry. I also kept reading news that oil demand is going to peakContinue reading “Oil demand to peak in the next decade?”
Invest it and forget about it?
We usually hear a suggestion to invest it and then forget about it until the day we need the money in retirement. Totally understand where this is coming from. People live a busy life and investing is not something they enjoy doing. Therefore, some experts aim to simplify investing and make it easy. Besides, passiveContinue reading “Invest it and forget about it?”
Recession is looming?
Major US banks set aside $4 billion for default of loans due to a possible a recession. Goldman Sacks to lay off 3,200 employees to cut cost. 60% of US CEOs predict a short recession per Conference Board survey. Just today, Goldman Sacks reported 69% drop in profit in last quarter due to decline inContinue reading “Recession is looming?”
US new tenant rent inflation cooled
Rent of new lease inflation is cooling in US. The key word is new lease. Housing is the biggest item on a household budget. Any change of inflation direction is significant. However, lease is usually a year, so the change on the new lease got buried in the existing leases signed within the 12 months.Continue reading “US new tenant rent inflation cooled”
The real Adam Smith?
Most of us heard of the famous phrase “the invisible hands” and book “The Wealth of Nations” by Scottish economist and philosopher Adam Smith. My personal understanding of “the invisible hands” is the aggregate supply and demand of the market force. However, based on the latest podcast on Adam Smith by Freakonomics Radio, this phraseContinue reading “The real Adam Smith?”
What to do with strong US dollar
For our Canadian investors, there are currency hedge or non-hedge ETF investing in US stocks or bonds. For example, S&P 500 index ETF got currency hedge or non hedge ones. When the US dollar is weak against Canadian dollar, we can buy the non-hedge one. When US dollar is strong, we can buy the hedgeContinue reading “What to do with strong US dollar”
US 30-year fixed mortgage rate recent drop
As of December 1, 2022, Mortgage rates fell for a third straight week, notching their biggest three-week decline in 14 years. Over the last month, that rate has dropped from 7.16% to 6.4%, according to the Mortgage Bankers Association. Federal Reserve has been raising federal fund target rates. Should the mortgage rate continue to increase too?Continue reading “US 30-year fixed mortgage rate recent drop”