Have you ever heard about mortgages in negative amortization?
As highlighted by The Kobeissi Letter, three of Canada's largest banks are seeing ~20% of their outstanding mortgages in negative amortization. What does this mean? Monthly payments on ~20% of mortgages at BMO, TD, and CIBC are no longer enough to cover interest expense. This means you end up owing more than your original loan amount over time. Typically, variable rate mortgages with fixed payments experience this in a rapidly rising interest rate environment. These homeowners may begin to foreclose over the next few months. This is an important trend worth watching.
Energy Index breakout ?
Energy Index (SEUENRS Index) is trading over major resistance 1631. It's the first time since 2008 that it's trading over that level. Source : Bloomberg
Can be the second half of 2007 be a good parallel for today's market?
As highlighted by MacroAlf, back in 2007, the FED kept rates at 5.25% (orange) despite core inflation was trending around 2% (blue) for quarters already. That ''higher for longer'' stubborness kept policy unnecessarily tight - as we figured out in 2008... Source: Alfonso Peccatiello
Valuation premium of US tech stocks vs. rest of the world is going beyond parabolic...
Source: Topdowncharts, TME
It is official? Total US Debt surpasses $33 trillion for the first time. For those keeping tabs, the US added $1 trillion in debt in just 3 months
Cartoon: Gary Varvel
Long Big tech is now the most crowded trade in the latest Global Fund Manager Survey by BofA
Short China equities comes next.
Reality
Source: Mindsetconquer
The Cash Flow Statement Explained Simply
Source: Brian Feroldi
