Syz the moment

Source: GS, Mike Zaccardi, CFA, CMT, MBA

Source: Charlie Bilello

(A "unicorn" refers to privately held companies valued at over one billion dollars). Leading the charge is ByteDance (TikTok's parent) at a whopping $220B 💰, followed by SpaceX 🚀 at $180B and OpenAI 🤖 at $100B. Noticeably, the US and China lead the world in both the number of unicorns and their combined market value. Source: Genuine impact

"Fiscal dominance is an economic condition that occurs when a country’s debt and deficit levels are sufficiently high that monetary policy ceases to be an effective tool for controlling inflation. In fact, persistently high interest rates in an environment of perpetually large deficits actually risk exacerbating inflation". Another definition: "Fiscal dominance occurs when fiscal deficits become as significant as, or more important than, private sector lending and monetary policy in driving economic activity". Source: Lyn Alden

A basket of 50 heavily-shorted stocks tracked by Goldman Sachs with market caps of at least $1 billion apiece is down 3.2% on the day as of 1:30 p.m. ET, undoing what had been a very strong start to the year. source : gs, bloomberg

What is the pain threshold for ecb to step in?

🔈 According to the Fed's latest consumer credit data, in November consumer credit across US households tumbled by $7.5 billion to $5.102 trillion, a 1.8% annual rate of contraction and usually something one only sees in the middle of recessions (or worse). ❗ While non-revolving debt (i.e. student and auto loans) rose modestly, it was revolving, or credit card debt, that cratered by a whopping $13.8 billion the biggest drop since the covid crash shut down the economy and the prospect of future income for millions of Americans (hence the collapse in spending). ⚠️ It is not clear what sparked this sudden reversal in the favorite American pastime - i.e., to buy stuff one can't afford and hope to pay it back some time in the future for a modest 29.95% APR - but we know what didn't: falling rates... because they didn't. ❗ Three months after the Fed cut rates, taking them 100 bps below where they were in September, the average interest on credit card accounts across the US banking system as tracked by the Fed is at 22.8%, the second highest reading on record and a drop of 57bps from the highest rating on record taken in Q3 2024... Source: Bloomberg, www.zerohedge.com

Source: Wolfstreet.com