Animal Spirits: Sudden Wealth Syndrome
On today's show we discuss what can stop the hyperscalers from spending, why the stock market is neat all-time highs again, speedball capitalism, how capex cycles work, it's a high beta decade, how to lie with statistics, young people are going to be fine, the top 0.1% is really rich, the problem with getting rich young, private markets are overvalued, no more dinner parties and more. The post…
On September 30th, JPMorgan revealed that retail flows had reached a record high, with investors flocking to long-end Treasury ETFs like $TLT, which had been driven by persistent yield increases. According to Eric Balchunas, the allure of $TLT is so strong that the more its value declines, the more enticing it becomes for investors.
Meanwhile, American consumers find themselves grappling with the reality of strained finances. While retail spending continued to stay on a positive trajectory with a 0.9% increase in August, the personal income growth of just 0.2% revealed a significant gap. As a result, many Americans are finding themselves forced to tap into their savings or borrow credit to continue their spending habits. It is a concerning sign of the financial strain faced by the nation's consumers.
Written by urgent.news from A Wealth of Common Sense's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
