Ep. 93: More Financial Market Complacency as the Economy Deteriorates!
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Description
Economic fundamentals continue to deteriorate while tech stocks find a new shiny object in AI. Congress re-commits to more deficit-spending while the Fed will have to buy an increasing amount of U.S. debt as interest rates move higher. The 30-year fixed mortgage is now above 7% further depressing home prices in many markets. Commercial office building prices in “free-fall” as almost $1 Trillion of related mortgages need to be refinanced in the next 1 to 1 ½ years. Inflation stuck at far higher levels than the Fed target implying another Fed funds rate increase and “higher for longer”.
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