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Power, Prestige, And The Pursuit Of Growth 💵
Did you know that the first stock exchange in the world was established in Antwerp, Belgium, in 1531?
Power, Prestige, And The Pursuit Of Growth 💵
Did you know that the first stock exchange in the world was established in Antwerp, Belgium, in 1531?
This early market for debts and commodities marks the inception of organized trading, setting the stage for today’s global financial systems.
In this edition, we touch on three critical insights:
The US Banking Sector Is Solid: First, the US banking system is standing strong, particularly against commercial real estate challenges 💪
The Real Reason Why Biden Won’t Quit: Next, we’ll look at how President Biden's insistence on running for office potentially reveals a motive beyond making the world a better place ❌
Market Takes A Breather: Finally, we highlight the importance of market corrections for long-term growth, emphasizing that downturns are part of a healthy financial system 😪
Dive into these analyses for a sharper trading edge. Here's to making informed decisions that propel us forward.
The US Banking Sector Is Solid 💪
There is much talk about risks in the banking system due to fragility in commercial real estate.
The overwhelming majority of commercial real estate in the United States is in good shape.
Office space however, which makes up a fairly small percentage of commercial real estate, is indeed in trouble 😱
But the banking system overall does not have outsized exposure to this segment of commercial real estate.
While there will be pain felt among certain regional banks, the US banking system is strong, and the US economy overall will not be damaged by this downturn, which is already quite advanced and largely “priced in” to financial markets 📊
The Real Reason Why Biden Won’t Quit ❌
Why doesn’t Joe Biden bow out with dignity and make way for a younger challenger to Donald Trump?
He might have convinced himself, as he says, that he’s the “most qualified person in the country to be president of the United States.”
More likely, the president has become enthralled by the power of the presidency and refuses to give that up 🏛️
For decades, Biden yearned to reach the office that’s given him access to world leaders and celebrities.
He can travel the world for diplomacy or state visits where toasts are made to him and his wife 🥂
Why would he quit and bring all that to an end?
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Market Takes A Breather 😪
Nobody likes to see red on their screen, but sometimes it’s necessary and healthy, and now is one of those times.
We need a little red for a few reasons 🔎
First, the forward P/E on the S&P 500 is around 20 right now, which isn’t terribly stretched, and a little lower would be better.
Second, a shakeout of the speculative money in the market from those who have been chasing a quick profit helps the sustainability of the bull market.
Finally, when volatility gets too low and investors become too comfortable and complacent, risk taking becomes overzealous, which leads to market excesses.
So red days are an essential part of the game, and even though it’s uncomfortable, as in everything in life, a little pain is required in order to grow 📉📈