February 2, 2024
January Market Commentary: Is Rate Relief In Sight?
The drama around the timing of the Federal Reserve’s first cuts to the key short-term interest rate continued in last few weeks of the old year and into the first week of the new year.
Two months of slowing labor market data, coupled with a change to the wording in the December FOMC statement that seemed to indicate the Fed is done tightening interest rates had futures markets pricing in an almost 80% chance of a rate cut at the March meeting.
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Update: The Housing Bubble and Mortgage Debt as a Percent of GDP
Calculated Risk by Bill McBride
A year ago, I wrote The Housing Bubble and Mortgage Debt as a Percent of GDP. Here is an update to a couple of graphs. The bottom line remains the same: There will not be cascading price declines in this cycle due to distressed sales.
In a 2005 post, I included a graph of household mortgage debt as a percent of GDP. Several readers asked if I could update the graph.
BTCUSD: The Nose of a Misunderstood Camel in the Investor Tent
CAIA Association
Last week Gary Gensler did what he had to do. The SEC Commissioners invariably vote along party lines, but Mr. Gensler can now be called a centrist as it was he who joined the two Republican appointees to approve the first ever spot bitcoin exchanged traded fund. Love him or hate him, he has always been consistent in the view that “the Commission acts within the law and how the courts interpret the law.” Coming out of what is now known as the Grayscale Ruling handed down by the DC Court of Appeals he acted properly even though he may not love the pill he had to swallow. While some may call it sour grapes, his final admonishment should be taken to heart by all investors and ETP purveyors. Gensler warned that investors should remain cautious about risks, while underscoring “the SEC did not approve or endorse bitcoin via this approval” by clearing the way for what is now 11 (and sure to grow) ETP filings.
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How to Rebalance Your Portfolio for 2024
This week’s episode of Grow Money Business is all about your investment portfolio. Going into 2024, this is an opportunity to rebalance your portfolio and think about whether your asset allocation is right for you. Join us as we dive into how to rebalance your portfolio, target bonds, exchange-traded funds vs. mutual funds, and more.
The Tech Landscape With Professor Scott Christianson: Generative AI, CBDCs, and Cryptocurrency
Scott Christianson is an Associate Teaching Professor at the University of Missouri whose proficiency involves technology, information systems, project management, and education, enabling him to guide students in developing critical thinking skills about upcoming technologies such as artificial intelligence and blockchain. He joined this week’s episode of Grow Money Business to update us with his knowledge of generative AI, cryptocurrencies, Central Bank digital currency, and more.
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-Grant