ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
April 11, 2024 | Easy For Some, Harder for Most
Four months ago, Fed Fund Futures had priced in the expectation of 6 to 8 US rate cuts (150 to 200 basis points) by the end of 2024. Today, that expectation has retreated to just 40 bps, with a 17% chance of a 25 bp cut in June, down from 50% on Monday. A significant […]
April 10, 2024 | Debt Stress Pandemic
US credit card debt topped $1.34 trillion in February, significantly above the cycle tops of around $900 billion in 2008 and 2020 (as shown below since 2003, courtesy of MFHOZ). The interest rate on this debt is above 20%. New car loans (5-year term) at 8.22% are above the 2007 rate peak (shown below courtesy of Liz […]
April 8, 2024 | Canada and Australia: Two Economies with Similar Challenges
Canadian GDP per capita declined for the 6th consecutive quarter in the final quarter of 2023; this means there are less resources per person–the standard of living is in decline.A new RBC study finds that more than half – one million – of 1.9 million new Canadian households by 2030 will not be able to buy a […]
April 4, 2024 | Impossible Home Prices Are The Problem
The median Canadian household income of $85k (Dec 2023) now qualifies for a maximum home price of $496k (assuming 20% down, 25-year amortization, and current mortgage rates (5-year fixed). That’s a problem since the avAdd New Posterage home price is $796k, an impossible 9.4x the median household income. The long-standing affordability rule is a home […]
April 3, 2024 | Rank Lawbreaking is a Popular Business Model
It’s not just crypto that’s lawless; it’s finance and many large corporations. Without equal prosecution and punishment prospects for all, we undermine the rule of law on which democracies depend. Mainstream finance companies that sell themselves as prudent and trustworthy while packaging gambling products to sell to the masses compound the harm. Better Markets CEO […]
April 2, 2024 | All In and Then Some
In every market cycle, once everyone who can or will buy has bought, only sellers remain. Today, households have a record 48% of their financial assets allocated to equities, the same level as the tech top in March 2000 and above the cycle peaks in early 2008 and 2022 (shown below, courtesy of The Daily […]