A record $8.9 trillion of government debt will mature over the next year.
Meanwhile, the government deficit in 2024 is projected to be $1.4 trillion. This means that someone will need to buy more than $10 trillion in US government bonds in 2024. That's nearly ONE THIRD of all outstanding US federal debt right now. All while the Fed is expected to start cutting rates, making buying these bonds less attractive. Who's going to fund all of this debt? Source: The Kobeissi Letter, Apollo
Something to keep in mind...
Source. Michel A.Arouet
Google searches for AI just hit a new high
Source: Bespoke
Tesla global sales by model over time
Source: Visual Capitalist
Investors continue to dump their Gold ETFs despite strengthening fundamentals.
Source: Goldman Sachs
Do you remember the dramatic loosing of Financial conditions at the end of 2023?
The lagged effect of this massive loosening is now hitting and is supporting the US economy (and this NOT doing The Fed's job...). Indeed, US economic surprises keep surprising on the upside. The GDPNow model estimate for real GDP growth (seasonally adjusted annual rate) in the first quarter of 2024 is 4.2 percent (!!!) on February 1, up from 3.0 percent on January 26
One reason the Fed is a bit nervous and signalling and end to their hiking cycle?
Real Fed Funds rates are the highest in over 20 years... Source: Markets & Mayhem, BofA
While the US economy remains very resilient, many consumers continue to struggle and need to find ways to keep their purchasing power
Pay rent or parents
