Friday, March 31, 2023

🏖️Why We May Hit a Recession By the End of Summer

Good morning. Yesterday's Q4 GPD data shows that there's been a sharp slowdown in personal...
It's the monthly jobs numbers today and they're not going to be pretty and will be possibly the tip of the iceberg as we head into May.

Good morning. Yesterday's Q4 GPD data shows that there's been a sharp slowdown in personal spending by consumers. That's a huge chunk of the economy – some estimates have it as high as 70 percent. So when consumers cut back on consuming, we've got a big potential problem.

At the current rate of slowdown, it's possible that we could be in a recession by the end of the summer. Adding to that the fears in the banking sector, and rising layoffs across the economy, and it's likely that markets are cooly heading for one last rally before another big pullback.

Investors should continue to look for trades on the short and long sides of the market, as volatility will continue. And investors can take advantage of today's high interest rates by getting a higher return on their cash.

Now here's the rest of the news:

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"The Great Reset" in full swing
Despite the most aggressive interest rate hikes in history, inflation is still rising.

Nothing the Fed is doing is working. And the news for the economy just keeps getting worse.

Savvy investors have seen this coming — and warned about it — for decades. But now with "The Great Reset" in full swing, this could be your last chance to position yourself to thrive in the upcoming chaos.

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MARKETS
DOW 32,859.03 +0.43%
S&P 4,050.83 +0.57%
NASDAQ 12,013.47 +0.73%
*As of market close
Markets continued higher on Thursday, the second-to-last trading day of the first quarter.
Oil rose 1.8 percent, last going for $74.28 per barrel.
Gold rallied 1.8 percent, ending at $1,999 per ounce.
Cryptocurrencies traded lower, with bitcoin at $27,962 at the stock market close.

Today's TOP TIPS
In this Market, Finding Big Savings Can Translate Into Big Profits
Ultimately, companies exist to provide a product or service that satisfy the needs of their customers. Sometimes, that need is simply to find a way to do more with the same… or less.

That's why companies that drive innovations can be big winners over time. Customers flock towards services that can provide cost savings. And that can translate into big profits for the companies that are providing that innovation. Following where the investments in money-saving ideas go can lead to those profits.

» FULL STORY

Insider Trading Report: Petco Health & Wellness Company (WOOF)
Ron Coughlin, CEO at Petco Health & Wellness Company (WOOF), recently bought 61,040 shares. The buy increased his stake by 11 percent, and came to a total purchase price of $504,800.

This marks the first insider buy in over 14 months. Insiders have generally been buyers of shares over the past two years, although largely between 2021 and January 2022. There have been two small sales by one insider over the past year.

» FULL STORY

Unusual Options Activity: MetLife (MET)
Insurance giant MetLife (MET) is down 22 percent over the past year, lagging the S&P 500. One trader sees the company continuing to slide even lower.

That's based on the September $42.50 puts. With 168 days until expiration, 3,004 contracts traded compared to a prior open interest of 109, for a 28-fold rise in volume on the trade. The buyer of the puts paid $1.18 to make the downside bet.

» FULL STORY

IN OTHER NEWS
Jobless Claims Trend Higher

Initial jobless claims hit 198,000 for the week ending March 25. That's higher than estimates for 195,000, and is up 7,000 from the prior week. Continuing claims have risen by 4,000, to 1.689 million, a sign that the job market continues to cool down.
Money Market Funds Hit 15 Year Highs

Money market funds, which act as a cash substitute, have hit yields of 4.5 percent. That's on par with U.S. Treasury yields, and marks the highest returns for these funds since 2008. Investors earning less than that on their cash right now are flocking to the funds to grab high yields.
Wall Street Bonuses Drop by 26 Percent

The average bonus for Wall Street workers fell to $176,700 last year, a drop of 26 percent compared to 2021's $240,400. The drop has occurred as stocks and bonds fell, and as the market for initial public offerings slowed down substantially, impacting the profits at Wall Street firms.
Eurozone Banks Scale Back on Lending

European banks have cut back on their lending to businesses and individuals in the past few months, even before U.S. firm Silicon Valley Bank was closed by regulators. Since then, the trend has accelerated, as Credit Suisse has been acquired by competing bank UBS. Tighter lending practices are expected for several months as the health of banks remains in focus.
Ledger Raises $108 Million at $1.4 Billion Valuation

Cryptocurrency wallet manufacturer Ledger has raised $108 million in Series C funding. That adds to the company's $385 million raise in 2021. Both rounds have valued the company at $1.4 billion. The company is looking to expand operations as cryptocurrency wallets continue to see high demand.

S&P 500 MOVERS
TOP
ZBRA  4.387%
CZR  3.741%
GEHC  3.66%
PAYC  3.649%
IPG 3.228%
BOTTOM
SCHW 4.963%
FRC 4.067%
MTCH 3.983%
CTLT 3.348%
BBWI 2.631%

Quote of the Day
Every day that something doesn't break is a good day. The market keeps waiting for something [else to break] but Silicon Valley Bank was that something.
- Ed Yardeni, president of Yardeni Research, on why Silicon Valley Bank's collapse may have been the final break in the market following the collapse of other financial institutions, particularly cryptocurrency ones, last year.

Sponsored Content
"The Great Reset" in full swing
Despite the most aggressive interest rate hikes in history, inflation is still rising.

Nothing the Fed is doing is working. And the news for the economy just keeps getting worse.

Savvy investors have seen this coming — and warned about it — for decades. But now with "The Great Reset" in full swing, this could be your last chance to position yourself to thrive in the upcoming chaos.

Watch "America's Last Stand" to discover a new way to invest that profits from "The Great Reset".

Clicking automatically opts you into Boardwalk Flock's newsletter (privacy policy)


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