A recession is coming, that much we should all be able to agree on. Sure, we can debate the exact timing, but the reality is the global economy is going to have a significant melt-down soon. And when the economy falls into a recession the stock markets go down with it. It may be starting today, or start next week, or not until next year, but make no mistake, it is coming.
Not only are we sure it is coming, we are convinced that the next recession will be much deeper and far more caustic than previous recessions. We say this because the next recession will be truly global. We believe that the coming recession will make the 2007–2009 period seem like a cake walk…..CLICK for complete article
The market capitalization of crypto is 300% higher now than it was two years ago this date. Among the biggest changes from two years ago is Bitcoin (BTC) dominance over the sector, down from 85% (January 2017) to circling around 50% today. This change is mostly traceable to the rise of specialized tokens filling various market needs, something very few could have predicted 5 years ago….CLICK for complete article
The ride-hailing company posted revenue of $776 million during the first quarter of 2019, nearly doubling the amount it made the same time last year. Their revenues beat expectations of analysts polled by FactSet, who were expecting $740 million.
But the San Francisco-based company lost $1.1 billion in its first public quarter, primarily because it paid out $894 million in stock-based compensation and related payroll taxes during its initial public offering….CLICK for complete article
As each of the seven largest credit-card issuers in the US reported a troubling jump in default rates to levels not seen in the better part of a decade, we noted last week that relaxed lending standards combined with ‘Non-GAAP’ FICO scores suggest that the American consumer is in far worse shape than many had realized – which could seriously threaten stability during the next recession (if the Fed ever allows one to happen)….CLICK for complete article
The first quarter was not pretty for new-vehicle sales in the US. Deliveries fell 3.2% from Q1 last year, to 3.99 million vehicles. Unless a miracle happens – and miracles are rare in the auto industry – 2019 is going to be the third down-year in a row for the industry, and the fourth down year for GM, Ford, Fiat Chrysler, Toyota, and some others, whose peak sales volume occurred in 2015.
At this pace, 2019 deliveries will fall below…Click here for full article.
Readers of The Telegraph are somewhat inured to dire warnings from the paper’s International Business Editor Ambrose Evans-Pritchard. However, his articles are well-researched and in the case of a piece this week, well balanced with arguments for and against his central theme that the bond market, supported by wider data, is showing sufficient warning signs regarding a recession that we should take the prospect seriously.
The piece isn’t alone in calling out the inversion of the U.S. bond market as a…Click here for full article.