From New York to London to Tokyo, there is one commonality among global stock markets: record highs. Of the world’s 20 largest stock markets, 14 have reached all-time highs recently. The MSCI ACWI index, which tracks developed and emerging markets, is setting one record after another. In the US, the S&P 500 and Nasdaq 100 …
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How far or close are we from a painful crash?
The economic cycle we are experiencing is very different from most economic cycles we have experienced to date in our lifetimes. This means that we are in an income-led expansion, but also in an income-led consumption expansion, meaning that citizens in the US are enjoying wage growth of 6% per year, with personal consumption spending …
The European economy will die a slow death day by day – Unless something changes immediately
Europe’s economic underperformance has long worried politicians. But the problem has climbed to the top of the debate agenda now that the development gap with the US has widened, following the twin shocks of the coronavirus pandemic and Russia’s war in Ukraine. Last month, French President Emmanuel Macron warned that Europe faces a “mortal” threat …
Stocks in an extreme bubble, everything reminds of the crash of 1929 and 2008
In the American stock market, there are risks of creating a bubble and extreme valuations, at unprecedented levels, due to the over-optimism of the market participants. The barometer index of the US stock market S&P 500 has broken a series of records this year, regaining strength in recent sessions after a weak April. However, the …
Wall Street: The debt bubble of 1.7 trillion dollars in the private debt shadow market
Private credit has grown exponentially in recent years as banks have reduced their balance sheets due to tighter regulations. The private debt bubble harkens back to the days of crazy investment risk-taking before the 2008 financial crisis. Right now we have a boom in the $1.7 trillion private debt market, where private equity funds lend …
Shipping: New shipbuilding prices at historic highs
Near all-time highs are shipbuilding prices for almost all ship categories according to a study by Danish Ship Finance. Continued placement of new orders and limited shipyard availability are pushing newbuild prices ever closer to historic highs, the finance house said, adding that the average newbuild price index has risen by 4% over the past …
EU: 50% of Energy in industry came from fossil fuels by 2022
Electricity at 33.3% and natural gas at 31.2% made up almost two-thirds (64.5%) of the final energy consumption of the EU industrial sector in 2022, according to data from to the public the European statistical agency Eurostat. The industry sector in the EU continues to rely heavily on fossil fuels, which accounted for just over …
The BRICS prepare a Central Bank and buy gold to support the common currency
China, backed by Russia and South Africa, is planning the final assault on the still-strong dollar by introducing a new currency, to be issued by a BRICS central bank that will combine the strengths of the respective currencies of the five largest economies join the group. At the same time, the replacement of the dollar …
How do Governments cause Inflation and pretend they are fighting the high Cost of living?
In the present analysis, we will show the way in which governments cause inflation and pretend to fight for accuracy. The new announcement of a 2.8% increase in the core personal spending index in the US, the Fed’s preferred measure, gives us the trigger to proceed with the downward analysis. This is the key indicator …
The FED is on alert: In case a banking domino of bankruptcies begins
It seems that in the US the time has come for a wave of consolidation in the banking industry. A key program that kept US banks afloat ended last month, and everyone knew what that would mean. By the last Friday of April, the FDIC had taken Republic Bank’s assets and had already arranged to …