Deutsche Bank announced another 10,000 layoffs. It seems it is drawing closer and closer to the brink.
Elsewhere, earnings from JP Morgan (-8% y-o-y), Wells Fargo (-3% y-o-y) and Citibank (-11% y-o-y) all beat expectations - as in lowered expectations to enable an easy beat. That is how Wall Street rig the game. So is not a surprise that the stock market rise with these "earnings beat".
The PPI (Producer Price Index) recorded an increase which was above expectations which saw the US$ moving higher as many liken it to an imminent rate hike.
However, consumer sentiment fell to 87.9 vs expectations of 92. It shows that consumers are withholding spending and this could have repercussions on the US economy further down the road.
Looking at the weak indicators, and rise in PPI, the US may already be in a stagflation which is every economist's nightmare. Commodities price are trending up led by oil.
This is what the central banks are likely to do. They will have all sorts Qs (QE, QQE, etc) to print more money to stimulate growth. But instead of spending many will be hoarding. Then there will be helicopter money direct to consumers. If this happens then the next phase would be a hyperinflation unlike anything we have seen before.
The Fed could already be behind the curve in terms of hiking interest rate as insurance premiums have doubled and medical costs have gone up.
When hyperinflation stamps its authority, many will be devastated.
The best defense is still physical gold and silver and hedging via inverse ETFs and miners.
The above is just my opinion. It is recommended you do your own research.
No comments:
Post a Comment