The Fed expanded the money supply by nearly $9 trillion under Powell.
Inflation has averaged >4% per year over the past 6 years. Powell's explanation? It was nearly all due to rolling “supply shocks" over which the Fed has no control. The truth: this inflation was made in Washington as it always is - from too much government borrowing/spending and too much government creation of money. Source: Charlie Bilello
In case you haven't noticed, there is just a tad excess liquidity out there...
SOFR – FF is the spread between two key US short-term rates: 1/ SOFR (Secured Overnight Financing Rate): the rate at which financial institutions borrow cash overnight, collateralized by US Treasuries (i.e. in the repo market). 2/ FF (Federal Funds rate, usually the effective fed funds rate, EFFR): the rate at which banks lend reserves to each other unsecured overnight. So the spread is secured rate minus unsecured rate. Under textbook conditions, secured borrowing is cheaper than unsecured borrowing — you're posting Treasuries as collateral, so the lender takes less risk and accepts a lower rate. That makes SOFR – FF slightly negative (typically a few basis points below zero) in calm markets. This is the "normal" state. SOFR materially below FF — usually means abundant reserves and ample cash chasing limited collateral. Cash holders accept low secured rates because they have nowhere else to put it. This is typically a sign of: - The Fed's RRP (reverse repo facility) being heavily used - QE having left the system flush - or scarcity of high-quality collateral (Treasury bills, in particular). Source: zerohedge
The Nasdaq 100 closed >30,000 for the first time ever; 30,001.32 (+1.8%).
From 126.22 points at its start in 1985 to 30,000 today. That's a 28,756.38% total return, or 14.7% annualized; for 41 straight years. Compounding is the eighth wonder of the world. Source: HolgerZ, Bloomberg
If you invested $100,000 into Zoom $ZM at the peak of the pandemic hype in 2020, you would have less than $12,000 left today.
The stock crashed over -88%, eroding nearly $130 BILLION in market value as the work from home bubble collapsed. Source: Bull Theory
US futures hit a new ALL TIME HIGH after Washington Post confirmed a US-Iran ceasefire framework for 60 days.
Dow Jones is up +0.91% hitting 51,211. S&P500 is up +0.95% hitting 7,569. Nasdaq is up +1.35% hitting 29,995. Russell is up +1.57% hitting 2,922. Source: Bull Theory
TRUMP JUST PUBLISHED THE EXACT LIST OF COUNTRIES REQUIRED TO JOIN THE ABRAHAM ACCORDS AS THE PRICE OF ANY IRAN PEACE DEAL
A proposed geopolitical framework reportedly backed by Donald Trump would require nine Middle Eastern nations to simultaneously sign or support the Abraham Accords, with no exceptions allowed. Saudi Arabia, Qatar, Pakistan, Türkiye, Egypt, and Jordan would all need to formally normalize relations with Israel, while the UAE and Bahrain would reinforce the coalition as existing members. Iran was reportedly offered the possibility to join under the condition of recognizing Israel, otherwise remaining isolated and in conflict. The proposal emphasizes that the agreement must happen collectively or fail entirely. Supporters see it as an attempt to reshape regional alliances, while critics view it as highly unrealistic given current tensions and political divisions. Source: Roland Carter
Short Squeeze Risks Rising?
“…Goldman Sachs’ trading desks argue that the core tension in today’s market is not about the strength or weakness of fundamentals, but rather the excessive accumulation of short positions, which—if triggered into covering—could unleash a self-reinforcing upward spiral…” Source: kristen shaughnessy @kshaughnessy2
The decline in the number of public companies has been driven by the disappearance of small companies.
Source: @a16z, (((The Daily Shot))) @SoberLook
