Jim Cramer: “We’re on the verge of depression”

“I’ve got to be honest with you: We could be on the verge of a depression. Not a recession, a depression if things don’t go right,” Jim Cramer said. Cramer gave the gloomy outlook after seeing the first employment contraction in the United States in nearly a decade. “The bad numbers are just beginning” Cramer […]

An unexpected hit. Big banks left hanging after ‘disaster’ in risky loan market

Big banks that help asset managers package risky loans into investment products are sitting on billions of dollars of debt linked to companies most exposed to an economic downturn. Lenders on both sides of the Atlantic have upwards of 100 open credit lines to vehicles known as collateralised loan obligations, which are among the biggest sources […]

Markets haven’t hit the bottom yet

At the moment, the ultimate impact of the virus on the economy is very speculative, since China and Europe, all eyes are focused on how the epidemic will develop in the U.S. Investors will get more of a sense of how badly the economy has been hit in the coming days when data on the […]

Here’s how to find out when the bottom is approaching?

First, we must limit the ‘deep tail risks’ The stock market, in theory, is a discounting mechanism. In other words, it prices in what’s expected to happen more than what already has. So when prices fall, it’s largely because investors expect the future to be worse than what they had previously assumed. And while there’s […]

Goldman Sees More Stock Market Losses Before Strong Recovery

Goldman Sachs Group Inc. strategists expect stocks to stage a powerful recovery from their worst sell-off since the 2008 financial crisis, but only after suffering more declines first. Global equities will likely post a drop of between 20% and 25% from their peak before rebounding, the strategists said. The MSCI All-Country World Index has so […]

Goldman Sachs expects 9 out of 10 major central banks to cut rates

Wall Street bet big on central bank stimulus to combat the economic damage caused by Covid-19. And investors will be especially keen to see any headlines coming out of the Group of Seven teleconference Tuesday, where finance ministers and central bankers are expected to discuss potential action to stabilize the markets. The call will start […]

VW chief defies sceptics with ambitious plans to overtake Tesla

Herbert Diess wants to sell 26m emission-free vehicles in 9 years, overtaking rivals including Californian electric pioneer When Volkswagen unveiled its first battery-powered prototype in 2009, chief executive Martin Winterkorn warned about “electro-hype” — the idea that this new technology… You need ・Varchev Trading Club・ membership subscription to enter this page. (19.90€ / monthly; 199€ […]

USD declines as a Fed rate cut is again on the table

As coronavirus spreads, market participants are trying to assess whether global central banks will make a concerted effort to stem the damage in their respective economies by leveraging monetary policy tools. The People’s Bank of China kicked things off  in an effort to boost liquidity as Asia stocks plunged on the first trading day after […]

‘McCulley Indicator’ Suggests Recession a Matter of Time

The “McCulley indicator” is close to rolling over. In market speak, that means that the U.S.’s gauge of core capex orders — those excluding military and aircraft, and named for former Pacific Investment Management Co. chief economist Paul McCulley, who viewed it as a recession indicator — has been in a downtrend since November 2017. […]