Another CRAZY Week in the Markets on The Tim & John Show ep. 4

4 years ago
37

It's been another WILD week in the markets, as widespread fear over pandemic, toilet paper shortages, and possible economic collapse loom heavy.

In this episode, Tim and John examine what's behind the recent market volatility, and what to consider when examining their weekly/monthly performance.

In the past week, almost every global market began to implode, and the volatility has been palpable. Although stocks are a bit higher than the previous week's lows, they appear to be moving toward testing those lows again, potentially this Friday.

Crypto has moved up again and bitcoin is now sitting about $500 higher than it was at the end of last week. Gold is on the way to having its best weekly performance since 2008.

The FED, Bank of Canada, and The Reserve Bank of Australia all cut interest rates to stop the capital outflows and boost their markets as an economic slowdown took hold. Those measures weren't enough, which lead to US Bond yields plunging nearly another 50 points - with the lowest yield being 6M and 1Y Bonds at 0.49% yield.

For some time now, both Tim and John have correctly predicted those rate cuts would come. Now we see it happen right before our eyes. Central Bankers and financial experts profoundly disagreed with us regarding the move to zero and potentially negative-yielding debt in the US this year, but now they see it happening themselves.

Next, we go into the risks in the banking system, and we talk about Jamie Dimon’s express heart surgery right in the middle of the crisis. A coincidence? Will Jamie exit right before the financial crisis? Last but least, we get into European banks being weak and call out Lehman Brothers 2.0 Deutsche Bank as their shares are down -30% since two weeks ago. We also get into the now big trend of oversubscription for an overnight and term REPO bailout by financial institutions and Hedge Funds.

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