Oil up 4%, gold up 2.2% and silver up 1.6% this week. Stocks down sharply with Nikkei down 4.5%, S&P down 4.3% & Nasdaq down 5.5%. Gold outperforming stocks YTD (see tables).
"We’ve been there before, in the crash of the dot-com bubble of 2000, when we believed that downloading pop music and porn would drive the economy of the future. We’ve done it again... Internet community and Artificial Intelligence were the two blasts of hot air that inflated the bubble."
Dollar LIBOR rises to highest level since November 2008 – $200 trillion worth of dollar-denominated financial products including mortgages based off LIBOR
Yesterday, we showed that according to Wall Street , the biggest tail risk facing investors right now is a "trade war" and that should trade tensions escalate, lower stock prices would be the immediate result. Today, this is precisely what is happening.
The European Commission has proposed new tax rules that would require US tech firms to pay taxes in the countries or regions where they generate value - not just where their headquarters are located...
Global shares traded in the red, and the dollar slumped before a hike in US interest rates, while awaiting key guidance on how many more to expect for this year. S&P futures were little changed, while markets in Europe and Asia dropped.
"The negative feedback loop is being triggered at an inopportune time, with elevated trade tensions and global political uncertainty adding to the risks that the spiral of doom accelerates."
"The first law of Bubble Finance is that stock market crashes trigger recessions, not vice versa. That stands your grandfather's macroeconomics on its ahead, yet the causal chain from which it arises is straight forward..."
The collective market cap of Apple, Facebook, Amazon, Netflix and Google (also known as FANG + Apple) has grown by more than 40% in the past year to $3 trillion, and now accounts for a staggering 25% of the Nasdaq... and some investors are starting to worry.
"The agreement ... is a significant accomplishment, as it allows us to definitively address the more than $20 billion in debt that has burdened our capital structure," CEO Bob Pittman said.
