The material in each presentation has been prepared by the respective participant for informational purposes only, and does not, nor does it intend to, provide tax, legal, accounting, or investment advice. This information is of a general nature and does not address the circumstances of any particular individual or entity. You should consult a qualified advisor on your situation to answer specific questions.
With NASDAQ up for 8 weeks consecutively, a -1.46% pullback last week makes sense.
Retail traders, who have less resources continue to pile into stocks even as the VIX began flashing warning signs.
The average correlation of the VIX vs. S&P 500 is -0.7.
This week, it spiked to +0.6, which indicated institutions taking out “insurance policies” on the broad market. This is the largest 10-day positive correlation since 1992, perhaps a warning sign for equities.
One of the most reliable and persistent indications of recession are an inverted yield curve that is persistent, despite aggressive rate policies.
Now that ours has last well over a year and other regions have joined in, the probability for a recession is much higher.
European equities have sold off recently, do we help to draw markets higher or will Europe take us lower?
With hybrid work becoming more of a norm, the need for office towers continue to fall. If commercial real estate companies do not adapt more quickly to a changing work environment, there will be many defaults in the months and years to come.
Mixed use projects is one solution, but that oftentimes needs the blessing of local governments, particularly in the US. The speed at which they handle this challenge can determine the fate of many of these companies.
European equities are having a decent year, with the Stoxx 600 supported by rising earnings forecasts, evidence of a resilient global economy in the early part 2023, receding inflation hopes that a peak in interest rates is in sight.
Since the start of April, however, the benchmark has been confined to a tight range as market participants increasingly question the outlook for growth.
The creation of real-time, 3D virtual applications by companies including Meta and Apple could support spending on AI servers, already poised to frow 19% through 2032 amid strong demand.
AI server spending could reach about 30% of total workload outlays by 2032, nearly doubling from 2022.
A recent military drill in South Korea illustrated drones (operated by AI computers) hovering at attention.
Future conflicts will be resolved with who has more money and technology, not necessarily the “strongest” military.
