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Economy

The correlation between US Interest Rates and The US Dollar (DXYInterest rates and USD strength are positively correlated. An increase in US interest rates will typically result in a strengthening of the USD. The reason is... Foreign investors tend to flock to US assets, such as bonds and fixed bank rates for higher returns. Higher demand for US assets drives up their price, and as a result, the USD strengthens. As for the relationship between USD strength and US stock market prices, it is more complex and can have both positive and negative effects. On one hand, a strong USD can make US exports less competitive, reducing demand and potentially leading to a decrease in corporate profits. This can weigh on stock prices. On the other hand, a strong USD can attract foreign investment into US stocks, driving up demand and prices. There are other reasons for the correlation such as: Interest rate differentials When interest rates in one country are higher than in another, capital tends to flow to the country with the higher interest rates. This results in an increase in demand for the currency of the country with higher interest rates, strengthening its currency i.e US Dollar. Inflation expectations Interest rates are also closely linked to inflation expectations. When interest rates rise, it is generally expected that inflation will rise too, which makes the currency more attractive to investors. Trade flows The USD is the currency used in most international trade transactions, and as a result, changes in trade flows can have a significant impact on the value of the USD.
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ECONOMICS:USINTREducation
by Timonrosso
6
On the down-low Money Supply factsThe chart shows two recent and unprecedented occurrences that may lead to an outcome of equally unprecedented proportions. In the past year the money supply peaked and is still negative over a year since reached peak liquidity Causes include the effects of the pandemic, asset conversions spurred by tax reforms and corporate buybacks, rising unemployment and housing prices amid interest hikes , and government security buybacks initiated due to bond market stress. This general and massive sell-off at peak valuation with no likely intent or ability to spend in the near term at a time of impending stagnation forebodes a bearish outlook for markets worldwide.
FRED:M2SLShort
by cosmic_indicators
How a Housing Market Crash Equals New Stock Market HighsTraders, I believe this chart is so important it warrants revisiting the data. Indeed, the fed has to be cognizant of this same data and is most certainly is watching it closely. Therefore, we must do the same. In this video, I am going to explain why the housing market data, even though it's week, supports my thesis of a blow-off top in the stock markets this summer. Stew ⛓️ 🔗 Useful Links 🔗 ⛓️ My Housing Market Chart: www.tradingview.com
ECONOMICS:USHMI
by stewdamus
1
FORECAST for 2023 is finally set PROJECTION 2023 low june 18 2022 forecast called for drop see dec 2021 projection a Panic low due oct 4th to the 20th focus on the 10th target was 3510/3490 . I also gave you the aug turn see august 2022 forecast peak and panic .We have now ended the last bull phase within the fractals and in spiral in time as well . We should see a break down and it should be rather sharp by APRIL 2/9 we should be near the oct low with a nice but muted rally into may 10th and then the last LEG down into june 18th targets are from 3170 to 2987 . then a year end rally into sept 2 . 2023 after this date we will decline back into mid oct to form a long term base best of trades WAVETIMER
FRED:WILL5000INDFCShort
by wavetimer
1
Bitcoin & Consumer Confidence Index by University of Michigan⚫️Update: US Consumer Confidence Index by University of Michigan⚫️ Index with a bear channel breakout on the way up - needs to be confirmed above 65.2 dear Bitcoin and Crypto Nation 🚨🚨🚨 Exciting to see if a BTC🟠 #bullish run begins afterwards Let me know your thoughts in the comments🤗 ⬇️⬇️⬇️ Likes and Follow for updates appreciated🤗 Disclaimer: Not financial advice Do your own research before investing The content shared is for educational purposes only and is my personal opinion
ECONOMICS:USCCI
by Crypto4Everybody
How to Reduce Inflation in South Africa in 2023! - 5 WAYS!How to Reduce Inflation in South Africa in 2023! - 5 WAYS! I got this excellent question today from someone Which I thought was an important question to answer considering the state of the Country of South Africa. Hi everyone. In SA I always wonder how an ordinary person "employed or not" can contribute to bring positive change to our inflation? A. Here is my answer... As an economist, I can say in theory it is possible to bring positive change to the inflation rates but in reality – with corruption – I’m not sure it’s that easy. Also, it’s the butterfly effect where we need to come together as a community (country) to work towards lowering inflation. So on the one hand, there needs to be less spending unfortunately. Here are a few measures I can think of… #1. Lower non-essential spending. People need to stop spending unnecessarily on products and services and instead start saving more for their future. This will hamper and reduce the impact of inflation. #2: Support your local places! This world is becoming highly globalised not only where the rich get richer but the TOP stores and shops get richer too. As a community, we need to start supporting the local businesses that have great quality products and services to. We need to be more friendly to each other and help spread awareness to the small but great man. This will help stimulate the local economy and bring on more job creation and economic growth. #3: More investments in education Education is key to help bring personal development and skills training. We need to educate our fellow people on business skills, high income skills, programming, AI, machine learning, savings, risk averse investments and encourage more businesses to help grow. #4: Save more to invest more When inflation is high it means people were spending uncontrollably which pushed up demand and lowered supply. Instead, we should encourage more savings in stocks, property, trading, funds, and personal finances to reduce the effects of inflation. Instead of drinking sorrows away, spending on games to bide time – focus on less spending and more saving for the future – reducing the debt levels. #5: Invest in renewable energy Load Shedding is here to stay. And so we need to try to support more renewable energy initiatives that come about. Solar, wind and gas. This will definitely help reduce the cost of energy and curb inflation. As I said, we can only do our part and hope for the best. We are a nation with hope, optimism and trust. But instead of just trusting the government we should also learn to support and trust our local businesses and methods to living a better life. Hope that helps.
ECONOMICS:ZAIRYYEducation
by Timonrosso
US Money Supply and Recession OutlookECONOMICS:USM2 There were four time US money supply trend has changed in last 60 years or so. The 1st one was with the Clinton Govt. with lower interest rate in 90's that started the boom and bust and 2001 recession. This trend starting in 90's changed with similar slope in 2008 when the interest rate went down to 0 after the Great Financial Crisis. This third trend line did reset during Covid resulting in current trend line with a near 90 degree angle of the slope - supply exploded with free money from government on top of 0% interest. This caused finally Fed to intervene and raise interest rate reacting to inflation. Starting 2022 we do see the reversal of the latest trend. If the steep slope of money supply is unsustainable either 1) we yield to a new trend line with similar slope increment like past two events 2) Merge to existing trend that started in 2008 . In case that scenario #1 materializes the new trendline which is nearly at angle vs. the previously emerged on in 2008 - we should see a so called small landing or a very mild recession. This should settle by around Q3 of '23. This might materialize with a rapid depletion of assets going below the dotted new trendline between April and July and then settles back by end of Q3. In Case scenario #2 we should see a gradual depletion of the excess money supply that would bring the money supply to the 2008 trendline. This probably would mean a rolling recession in various sectors. We have already seen that happened in Housing followed by Technology. In this case with the strongest balance sheet in the bank - probably financial is going to be hit last causing credit crisis in around 2024 and finally Fed to cut and a recession to be over sometime around 2025 as highlighted with the red arrow aka "hard landing". In either case - a recession in a presidential election year or the year before is rare if not unprecedented. This will not be desired in current social and political environment of United States - something to worry about for the '24 election outcome. And in either case - unless we (the tax payers) are paying for a incompetent and blatantly stupid Federal Reserve - I don't see how Fed can stop raising or pausing interest rate until money supply is curbed. So far the trend reversal is very short and not steep enough - so it will be unbelievable if Fed declares victory with inflation. In other words, in "normal world" pain should sustain and stocks and bonds should be shorted.
ECONOMICS:USM2Short
by dgtrader1981
Big drop in Employment rate.US Employment Rate. Lowest level in last 70 years was 55% employment rate. dropped to 51% last year. Another reason to stay Bearish, if employment is down and interest is up that isn't a great sign? When interest rates are high its harder to pay back debt so companies can layoff employees, can create a viscous cycle as jobs recessed. What is an economy made of? Jobs are fundamental and providing some kind of Proof or work to generate an asset, product or service for sale adds value to an economy, circulation adds value to an economy, lower costs on sustainable resources adds value to an economy. What else adds value to an economy? We need to find a way to tie all these markets and concepts together that are easier for Joe to understand. Employment rate Interest rate Money Supply Equities and Bonds Currency and exchange rates Companies, Corporates and stocks Assets and commodities If we drop below the red dotted 50% line that means that more people in the US are without jobs than with them, very important to stay above 50% employment rate
ECONOMICS:USEMR
by cryptodefrag
PERSONAL SAVING RATE RUNNING ON EMPTYThis chart shows that personal saving is at the lowest in US Record . TIC TIC TIC BOOM NO SAVINGS RECORD HIGH RATES ON CREDIT CARD . AND CONSUMER SPENDING AT A RECORD HIGH . . ONCE UNEMPLOYMENT TICKS UP I WANT TO PUT THIS OUT THERE THEREIS ONLY TWO THINGS THAT CAN HAPPEN 1 PUT CASH DIRECT INTO THE ACCOUNT =INFLATION OR CONSUMER CREDIT DEFAULTS START Auto repossessions at a rate of 15,000 a month . or a 3th way debt forgiveness, The MACRO Picture over the next 18months, is NOT good Civil Unrest , homelessness.
FRED:PSAVERT
by wavetimer
1