Financial Markets (Weekly) Week-on-week, the main stock market indices were mixed, without noticeable change on the S&P500, the NASDAQ 100 up 1.3%, and the RUSSEL 2000 down 1.3%.  Gold fell 3.3% from recent all-time highs, and silver fell 3.6%. The barrel of WTI is down 2.1% to ~78$ per barrel. Bitcoin rised 3.7% and seems to be topping around 68700$. The relative strength of the US dollar is almost unchanged (+0.2%).  Financial conditions (NFCI) loosened AGAIN relative to the previous week. M2 money supply (USM2) rised slightly and is around 20.8T$. US bond yields rised slightly, now sitting at 4.95% for the 2-year and 4.47% for the 10-year. Comment Section The US stock market looks like it's topping and investors are not very motivated to sell or buy. The VIX (volatility index) is very low, indicating that investors are not seeking puts for protection or speculation on a market downturn in the next ~25-30 days. Liquidity and financial conditions seem normal, t...

Financial Markets (Weekly) Week-on-week, the main stock market indices continued rising, with the S&P500 gaining 1.5%, the NASDAQ 100 up 2.1%, and the RUSSEL 2000 up 1.9%.  Gold is up by 2.3% (close to all-time highs), and silver gained 11.9%. The barrel of WTI is up 1.7% to 79$ per barrel. Bitcoin rised 9.2% and is now around 67100$. The relative strength of the US dollar fell 0.8%.  Financial conditions (NFCI) loosened relative to the previous week. M2 money supply has stabilized around 20.8T$. US bond yields didn't change much, now sitting at 4.83% for the 2-year and 4.42% for the 10-year. Comment Section This week, the top US stock market indices hit new highs, on average volume. Volatility is low. However, I'm not convinced that this is the beginning of a raging bull market unless other liquidity measures start spiking. However, fear in the markets is also low (bad timing to sell puts). The PPI release indicates that inflation on the producer side is still st...

In the last update of the Drewry World Container Index, we see a spike in prices for all routes from Shanghai. At fundamental levels, the shipping rate increases seem to be due to high vessel capacity, re-routing via the Cape of Good Hope (Red Sea problems) and equipment shortages.   (https://www.drewry.co.uk/supply-chain-advisors/supply-chain-expertise/world-container-index-assessed-by-drewry) An important effect is in the business of lower profit margin shipping companies, such as ZIM shipping. Look at the stock price movement, in anticipation of higher profitability due to higher shipping rates. The price soared ~50% since the beginning of the month! Anyway we are probably going to see some price consolidation at current levels of 17-18$ before more price movements. Also, the next earnings call is around the corner and we'll have a better idea of how the new LNG vessels and operating conditions are affecting the profitability of the company. --------- More information: Flexpor...

Financial Markets (Weekly) Week-on-week, the main stock market indices continued rising, with the S&P500 gaining 1.8%, the NASDAQ 100 up 1.5%, and the RUSSEL 2000 up 0.9%.  Gold is up by 2.5%, and silver gained 5.9%. The barrel of WTI is down 0.3% to 78$ per barrel. Bitcoin rised 6% and is now around 37100$. The relative strength of the US dollar rised 0.2%.  Financial conditions remain stable, and loose.  M2 money supply has stabilized around 20.8T$. US bond yields have stabilized, now sitting at 4.67% for the 2-year and 4.50% for the 10-year. Comment Section January Through May 2024 Interest Rates and Inflation The FED has quickly raised interest rates from March 2022 until July 2023 (5.5%), and kept them unchanged since then. In the FOMC meeting in May 2024, policymakers acknowledged that while inflation has moderated over the past year, it remains elevated, and there has been a lack of further progress towards achieving the central bank's goal in recent month...

Oh, the banks... Remember: there is no replacement for financial education! Just laugh and have a nice Sunday! JKO News. ---   Video: Tu'ppence - Mary poppins Channel: Barbara Sally Humphries Lyrics: Source: https://genius.com/Dick-van-dyke-fidelity-fiduciary-bank-lyrics [MR. DAWES SR.] If you invest your tuppence wisely in the bank, safe and sound Soon that tuppence, safely invested in the bank will compound And you'll achieve that sense of conquest as your affluence expands In the hands of the directors who invest as propriety demands [MR. BANKS, spoken] May I, sir? [MR. DAWES SR., spoken] Carry on, Banks [MR. BANKS (MR. DAWES SR., spoken)] You see, Michael You'll be part of railways through Africa (Exactly) Dams across the Nile (The ships, tell them about the ships) Fleets of ocean Greyhounds (More, tell them more) Majestic, self-amortizing canals (How it fires the imagination) Plantations of ripening tea [BANK DIRECTORS] All from tuppence prudently, thriftilly, frugal...