Cracks are widening in the $2 trillion private credit market.
Blue Owl Capital has fallen 56% over the past year, significantly underperforming major private credit peers. The decline reflects rising investor concerns, as redemption requests at its two largest private credit funds reached $4.7 billion in Q2, exceeding quarterly withdrawal limits. Its technology-focused fund faced particularly heavy pressure, with 38% of investors seeking to exit. The trend extends across the private credit industry, where record redemption requests totaled $15.6 billion in Q2, but only 38% were met, leaving $9.7 billion outstanding. These developments highlight growing liquidity risks, suggesting private credit may be entering its most challenging stress test yet. Source: Global Markets Investor
UAE Crude Output Nears Record High Following OPEC Exit Amid Surge In Chinese Buying
Source: zerohedge
The Turkish Lira is now down over 99.995% against the US Dollar from its all-time high.
Turkey sold nearly $26 BILLION in gold and Treasury bills this year trying to defend the currency. Even after all that intervention, the Lira is still making new all time lows almost every week. Source: Bull Theory
AMERICAN HOUSEHOLDS ARE MORE INVESTED IN STOCKS THAN EVER
Stocks now make up a record-high share of U.S. household assets, Axios reports. American household wealth is now more tied to equities than ever before, making consumers more exposed to market swings. Source: Coin Bureau
Are US semiconductor stocks priced for perfection?
The semiconductor sector is trading at historically high valuations, with the Philadelphia Semiconductor Index near 30x forward earnings and at a rare premium to the S&P 500. While AI remains a transformative technology, concerns are growing that investment is outpacing economic returns. Falling AI token prices and a widening gap between AI spending and AI-generated revenue suggest monetization is lagging. If hyperscalers fail to generate stronger returns from AI, current semiconductor valuations may become increasingly difficult to justify.
The investor who famously called the 2008 financial crisis is making his biggest bet yet.
A market strategist is betting on a 30–40% correction by March 2027, shorting Nvidia, Tesla, Caterpillar, and semiconductor stocks. He argues that AI infrastructure companies have soared while major AI buyers (Microsoft, Amazon, Google, Meta) have seen relatively weak returns, raising valuation concerns. He also points to stretched semiconductor valuations, extreme technical indicators, falling AI token prices, and underestimated depreciation costs. His core argument is that AI enthusiasm has outpaced economic returns, making the sector increasingly vulnerable to a sharp correction.
Central banks just doubled their gold buying in a single month.
The World Gold Council reported net central bank gold purchases of 41 tonnes in May, more than double April's 19 tonnes. Poland was the biggest buyer, adding 18 tonnes in May, bringing its 2026 total to 64 tonnes. Its reserves now stand at 614 tonnes. China added 10 tonnes, its biggest monthly purchase since December 2024 and its 20th straight month of buying. Total Chinese reserves now sit at 2,331 tonnes. Turkey was the only major seller, offloading 3 tonnes in May, extending its 2026 net sales to 81 tonnes as it draws on reserves to defend the lira. The 2026 Central Bank Gold Reserves Survey shows 89% of central banks expect global gold reserves to increase over the next 12 months. A record 45% plan to increase their own holdings. Gold gained +2% last week after four straight weekly declines but remains -25.4% below its peak. Source: Bull Theory
Investors dumped Stocks last week at the fastest pace since March
Source: BofA, Barchart
