Another Japanese Yen market shock is coming warns T. Rowe Price 🚨
Source: Barchart
US manufacturing has officially contracted for the 5th consecutive month, to 47.2 points.
The ISM manufacturing PMI index missed expectations of 47.5 points for last month. New orders fell to 44.6 points from 47.4 in July, experiencing contraction for the 3rd straight month. Manufacturing activity has now shrunk in 21 of the last 22 months, extending the second-longest downturn in history. The worst part? The prices paid index jumped to 54.0 points from 52.9 in July, expanding for the 8th month in a row. Rising prices with falling output is rarely a good combo for stocks >>> to be monitored Source: www.zerohedge. The Kobeissi Letter
BREAKING: Magnificent 7 stocks have now erased $550 BILLION of market cap today.
Nvidia, $NVDA, is on track for its largest daily drop since April 2024. As discussed during our H2 outlook, volatility is coming back with a vengeance ahead ahead of US elections. Source: The Kobeissi Letter, Bloomberg
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Is it sustainable?
Interest Expense, Social Security, and Health are set to account for 87% of the US government spending growth over the next 10 years. Government spending is estimated to grow from $6.8 trillion in Fiscal Year 2024 to $10.3 trillion in 2034, according to the CBO. $3.0 trillion of the $3.5 trillion increase come from Social Security, federal health care programs, and interest costs on the public debt. Interest costs are projected to be the fastest growing part of the budget, DOUBLING from $892 billion in 2024 to $1.7 trillion by 2034. The net interest share of spending growth could hit as high as 23%. Source: The Kobeissi Letter, CBO
The cost of chip designs has risen at an incredibly rapid pace.
From the 28nm design in 2011 to 3nm in 2022, the cost of designing a chip increased by 12x – benefiting design tool and IP giants such as $SNPS, $CDNS, and $ARM. Source: Quartr
Buffett > S&P 500?
Over the last 5 years, $BRK.B returned 130% compared to the $SPY 91% return Zooming out, this is where Buffett's legacy is unparalleled... From 1964 to 2023, Berkshire Hathaway returned an astounding 4,384,748%, compared to the S&P 500’s 31,223% gain Source: Stocktwits
