Higher than expected US PPI + Powell's remarks yesterday sent rate-cut expectations notably lower - December less than 50-50 now...
Source: Bloomberg, www,zerohedge.com
Current gold price pattern is similar to that seen in 2016's "sweep republican victory"...
Source. www.zerohege.com
VACCINE STOCKS PLUNGE AS TRUMP TAPS RFK JR. FOR HHS CHIEF
Pharmaceutical stocks are in freefall after Trump named Robert F. Kennedy Jr. as his HHS Secretary nominee. Moderna (-30.6%), Novavax (-42.7%), and BioNTech (-11.9%) have all tumbled since the announcement as investors fear a dramatic shift in U.S. health policy. RFK Jr., who has challenged mainstream medical practices and vowed to streamline the FDA, says he'll refocus health agencies on nutrition and fighting chronic disease. Trump: "For too long, Americans have been crushed by the industrial food complex and drug companies." Source: @Breaking911 NBC, Mario Nawfal @MarioNawfal
Has J Powell handed Trump a ticking time bomb?
By prematurely cutting rates by 50 bps ahead of the election, even with inflation still running above target, the Fed has set the stage for an inflationary resurgence. The latest October inflation data released yesterday confirmed the trend, with PPI coming in at 2.4%, hotter than the expected 2.3% Meanwhile, core PPI rose to 3.1%, ahead of the expected 3.0% increase The bond market starts to price in this risk, with 10-year Treasury yields up nearly 70 bps since the Fed's began cutting overnight rates in September Rising borrowing costs will become a major headwind for Trump's pro-growth, and likely pro-inflationary, fiscal policies. And it could soon become a major problem for equity investors paying a near record high 28x (TTM) earnings in today's stock market. Source: Porter Stansberry @porterstansb on X, Marketwise,T
ARE US STOCKS OVERVALUED ⁉
☢ S&P 500 earnings yield FELL below the 10-year Treasury yield for the 1st time in 22 YEARS. ❗In other words, less risky (theoretically) 10-year Treasury is paying MORE than the S&P 500. ⚠This could imply lower than average forward returns for S&P 500. Source: The Daily Shot, Global Markets Investor
When the US Treasury announces that it will back the Global Reserve Currency with bitcoin 🔥
Bitcoin $BTC relative to gold $XAU has broken out brutally.
Spoiler: France will continue to miss deficit targets.
It already has the highest tax burden in Europe, and there are no real structural reforms on the horizon. Source: Michel A.Arouet
⚠️US GOVERNMENT BORROWING EXPLODED IN OCTOBER⚠️
US budget deficit hit a STAGGERING $257.5 BILLION in October. This is up nearly 400% year-over-year versus $66.6 BILLION last year. This was also the 2nd highest deficit in the entire United States history. Mind-blowing numbers. Source: Global Markets Investor, zerohedge
