Still Recovering From Last Week’s “Perfect Storm”

Are you seeing signs of recession in your neighborhood? Published By Money & Markets, LLC. August 12, 2024 Published By Money & Markets, LLC. August 12, 2024 [Turn Your Images On] Money & Markets Daily: The 5 It's impossible to keep up with everything going on in financial markets and the economy these days. That's where "The 5" from Money & Markets Daily comes in… Let's start your week off right! --------------------------------------------------------------- Still Recovering From Last Week’s “Perfect Storm” Last Monday, we saw a “perfect storm” of market factors that led to an unexpectedly sharp decline in stocks. From overleveraged hedge funds to international investors banking on the yen carry trade, it seemed like everyone was selling at once. Indeed, as our own Adam O’Dell noted in [last Tuesday’s Money & Markets Daily]( 23 stocks were declining for every single stock that booked gains on Monday. The market’s “fear gauge” Volatility Index (VIX) reached its third-highest reading ever recorded. Fortunately, the rampant selling died off nearly as quickly as it began. Stocks resumed their upward march throughout the rest of the week, but investors are still leery… Should Markets Price in a Recession? Ever since Fed Chair Jerome Powell committed to the fastest rate-hiking cycle in 40 years, investors have been worried that his bold actions might plunge the economy into a recession. Many experts have also been skeptical that such an aggressive Fed policy could still engineer a “soft landing.” And based on recent economic data, it seems their fears may become justified. JPMorgan analysts now calculate there’s a 35% chance we’ll see a recession before the end of the year. The company’s CEO puts that number even higher, with a 65% chance of recession. Veteran investor David Roche has likewise chimed in, saying that he believes a bear market is “probably” coming in 2025. --------------------------------------------------------------- [Turn Your Images On]( [Is Apple Plotting to Kill Its iPhone?]( Rumors are swirling about Apple's secret AI lab. Now, insiders hint that an AI-powered device could render today’s iPhone obsolete. Codenamed MM1, [this project]( has the potential to disrupt the smartphone industry. With Apple scooping up $1.6 TRILLION in iPhone sales since its launch… Will YOU be in position for what Apple’s “next big thing”? [Click here now to see all the details.]( --------------------------------------------------------------- $4.9 Million in Stock Market Stress China hasn’t been immune to the latest stock market tumble. According to a recent Bloomberg update, investors are pulling record amounts of money out of Chinese markets. At the same time, Chinese firms are investing a record $71 billion abroad. This downturn is costing Chinese investors more than just their money. It’s costing them their health. A recent study from medical experts at the National University of Singapore and Peking University indicated that a stock market decline of just 1% in China led to an increase in hospital visits for cardiovascular and mental health issues. That same report estimated that a 10% decline in the Chinese stock market would lead to an additional $4.9 million in health care costs for the country as a whole. That’s medical proof that it pays to do your due diligence when investing in emerging markets. All Eyes on This Week’s Earnings Reports With a potential recession on the horizon, investors are now eager for any economic data that might give them clues about the health of the average consumer’s pocketbook. If consumer spending stays strong, a recession is less likely. One way to gauge consumer spending is through the earnings reported by major retail chains like Walmart Inc. (NYSE: WMT) and Home Depot Inc. (NYSE: HD) — both of which are scheduled to report this week: [Turn Your Images On] Earnings week is always a pivotal time for individual stocks. But this time around, investors will be looking for some reassurance about the larger economy. If they don’t get it, stocks might slip once again. A Recession in YOUR Neighborhood? “I’ve been seeing a lot more moving trucks in my neighborhood lately,” said Money & Markets Editor-at-Large Matt Collins. We were talking about recessions over our team lunch last Tuesday, and the topic had shifted from traditional economic indicators to more anecdotal evidence. Matt pointed out that you’ll often see signs of a recession in your community before the experts make it official. In Matt’s case, that anecdotal evidence takes the form of moving trucks — with multiple families leaving an increasingly expensive South Florida neighborhood all on the same weekend. Maybe it’s just a coincidence. But maybe not… So for this week’s poll, we decided to ask: Are YOU seeing signs of a recession in your neighborhood? Anything out of the ordinary that would indicate economic activity is slowing down. Let us know at [Feedback@MoneyandMarkets.com](mailto:Feedback@MoneyandMarkets.com?subject=Poll%20response:%20Are%20you%20seeing%20signs%20of%20a%20recession%20in%20your%20neighbohood?). We'll loop back around to your anonymous responses in a future edition of "The 5." — Money & Markets Team --------------------------------------------------------------- Check Out More From Money & Markets Daily: - [AIRB N' BUST]( - [NO ONE IS DETHRONING THE KING OF SEARCH]( - [WHY INVESTORS SMASHED THE "PANIC" BUTTON]( --------------------------------------------------------------- [Turn Your Images On]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe]( Privacy Policy The Money & Markets, P.O. Box 8378, Delray Beach, FL 33482. To ensure that you receive future issues of Money & Markets, please add info@mb.moneyandmarkets.com to your address book or [whitelist]( within your spam settings. For customer service questions or issues, please contact us for assistance. The mailbox associated with this email address is not monitored, so please do not reply. Your feedback is very important to us so if you would like to contact us with a question or comment, please click here: [( Legal Notice: This work is based on what we've learned as financial journalists. It may contain errors and you should not base investment decisions solely on what you read here. It's your money and your responsibility. Nothing herein should be considered personalized investment advice. Although our employees may answer general customer service questions, they are not licensed to address your particular investment situation. Our track record is based on hypothetical results and may not reflect the same results as actual trades. Likewise, past performance is no guarantee of future returns. Certain investments carry large potential rewards but also large potential risk. Don't trade in these markets with money you can't afford to lose. Money & Markets permits editors of a publication to recommend a security to subscribers that they own themselves. However, in no circumstance may an editor sell a security before our subscribers have a fair opportunity to exit. Any exit after a buy recommendation is made and prior to issuing a sell notification is forbidden. The length of time an editor must wait after subscribers have been advised to exit a play depends on the type of publication. (c) 2024 Money & Markets, LLC. All Rights Reserved. Protected by copyright laws of the United States and treaties. This Newsletter may only be used pursuant to the subscription agreement. Any reproduction, copying, or redistribution, (electronic or otherwise) in whole or in part, is strictly prohibited without the express written permission of Money & Markets. P.O. Box 8378, Delray Beach, FL 33482. (TEL: 800-684-8471) Remove your email from this list: [Click here to Unsubscribe](