An important development for portfolio construction: bonds and equities are negatively correlated again.
Source: Bloomberg, Alessio Urban
Japanese stocks are trading at a reasonably low PE of 13.17 after the recent drawdown
Source: Bloomberg, Markets & Mayhem
BREAKING: The number of US bankruptcies currently under Chapter 11 jumps to 2,462, the highest count in 13 years.
A Chapter 11 filing involves court-supervised reorganization and allows a company to stay in business and restructure its finances and operations. These bankruptcies have more than DOUBLED in just 2 years. This comes after many companies have struggled to make their debt payments as the Fed raised interest rates to the highest level in 23 years. Source: Bloomberg, The Kobeissi Letter
Before the euro, Greece, Italy, Spain were adjusting for their lower productivity via currency devaluations each year.
Within the European currency union the only avenue left is adjusting via real wages pushing many people into poverty. Source: FT, Michel A.Arouet
BREAKING: Container shipping costs from China have spiked to their highest levels since 2022
Since the beginning of 2024, shipping rates have more than TRIPLED. It now costs ~$9,000 to ship a 40-foot container from Shanghai to New York and ~$8,000 to Los Angeles. This has been driven by a sharp drop in Suez Canal transit volume, disruptions at some ports in Asia, and demand increase due to inventory restocking. Rising shipping costs should be considered as an upside risk to inflation. Source: The Kobeissi Letter
Hedge Funds reduced their bearish Japanese Yen bets by the 5th largest amount in history (week ended August 6)
Source: Bloomberg
About that ether crash last week: biggest surge in CFTC Ether leveraged shorts on record
Source. Bloomberg, CFTC, www.zerohedge.com
US banks are facing $517 Billion of Unrealized Losses - nobody wants interest rate cuts more than them
Source: Barchart, BofA
