Today's market chaos was brought to you by strong eco data (ISM Services headline and JOLTS), a scary Prices Paid print (two year high), and the return of Trump press conference-driven vol.
Source: www.zerohedge.com, Trend Spider
How much longer can this continue before the crocodile's mouth snaps shut?
(S&P 500 in green vs. US 10-year inverted in RED) Source: Bloomberg, www.zerohedge.com
10-Year Treasury Auction was awarded a 4.68% yield, the highest since 2007 🚨
Source: Barchart
The correlation between US stocks and bonds over the last 3 years (0.73) is the highest on record.
Source: Charlie Bilello
US Federal finances illustrated in one chart
Source: JP Morgan
Over the last 10 years, US Federal Government Tax Revenue has increased 60% while Government Spending has increased 99%.
Does the US need higher taxes or less spending to balance the $2.1 trillion budget deficit? Source: Charlie Bilello
USDollar is now the most overvalued in history according to Bank of America.
Bank of America uses a "behavioral equilibrium exchange model (BEER)", an economic concept used to estimate the equilibrium exchange rate of a currency based on fundamental macroeconomic factors and behavioral relationships. BEER models derive the equilibrium exchange rate from observable economic fundamentals such as Terms of trade, Productivity differentials, Net foreign assets, Interest rate differentials and Trade balances Source: Barchart
A new risk seems to be rising as we start 2025: terrorism on US soil
• NEW ORLEANS TERROR ATTACK: At least 10 people were killed and 35 injured when a driver rammed a pickup truck into a crowd during New Year’s celebrations on Bourbon Street in New Orleans early on Wednesday morning. The FBI is investigating it as an “act of terrorism.” • TESLA CYBERTRUCK EXPLOSION OUTSIDE TRUMP LAS VEGAS HOTEL: Government officials told ABC News that the Tesla Cybertruck explosion on Wednesday outside the Trump Las Vegas hotel in Nevada is being investigated as a "possible act of terror." Source: CNN, ABC, Mario Nawfal on X
