The Fed's balance sheet hit its lowest level since June 2021 this week, down $941 billion from the peak in April 2022
Changes in the Fed's balance sheet since 2002... Source: Charlie Bilello
Home price to income ratios are now above 4.5x and at their highest levels since the 1950s
Even in the 2008 financial crisis, home price to income ratios did not cross 4.5x. This means that home price to income ratios are the same as the post-WW2 era in the US. The median home price to income ratio is 1.2x below current levels, at 3.2x. Either home values need to fall or income needs to rise. Source: The Kobeissi Letter
There is always a bull market somewhere... The Sprott Uranium Trust just broke a huge resistance
Source: Tony Greer
The World’s Biggest Oil Producers
Source: Visual Capitalist
In case you missed it: now that the Fed's blackout window is over, everyone said the same thing in the days that follow the FOMC meeting: "higher for longer":
*FED'S COLLINS: FURTHER FED HIKES 'CERTAINLY NOT OFF THE TABLE', EXPECT RATES MAY HAVE TO STAY HIGHER FOR LONGER *FED's BOWMAN: MORE RATE HIKES LIKELY NEEDED TO GET INFLATION TO 2%, NEED TO REPEAT MONETARY POLICY ISN'T ON PRESET COURSE *FED'S DALY: I DON'T GET TO A POINT WHERE I'M READY TO DECLARE VICTORY, UNLIKELY INFLATION WILL REACH 2% GOAL IN 2024
The S&P 500 index dropped 2.9% over the week
That marked the third straight negative week and worst weekly performance since March. Is the Head & Shoulders pattern in the S&P 500 playing out? Source: barchart
Treasury Yields now surpass Stock Dividend Yields by the widest margin since the Global Financial Crisis
Source: Bloomberg, Bar chart
Maybe this is why Powell said that a soft landing is not the core scenario...
Recession confirmed?
