How a money drain in 2023 could upset the banks again and cause another market meltdown, investor warns

  • 📰 MarketWatch
  • ⏱ Reading Time:
  • 61 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 28%
  • Publisher: 97%

Nigeria News News

Nigeria Nigeria Latest News,Nigeria Nigeria Headlines

Our call of the day from Thomas Kee Jr. says investors need to start paying attention to liquidity in the financial system, or a big lack thereof that could...

Wall Street is pointing to a weak open ahead of Tuesday’s earnings from Microsoft and other big names. That’s a day after soft-economic landing hopes fueled fresh 2023 highs for the S&P 500 SPX and Nasdaq Composite COMP.

In a recent report to clients, Kee noted similarities between current markets and 2019, when big banks started questioning levels of liquidity due to a Fed drain, and ultimately pushed overnight lending rates to over 8.5%. The Fed got things under control in a short space of time via massive liquidity injections.

Kee’s proprietary Evitar Corte crash indicator, which gauges Fed monetary policy to try to avoid market meltdowns, signaled a crash warning in 2019. He flagged budding liquidity issues to MarketWatch last November. “There is also enough volatility in the market for some investors to improve cost basis, but everyone needs to be in nimble strategies. Our CORE Portfolio Strategy has been long all year, up about 8.5% YTD vs 4.4% for SP 500,” he said in emailed comments. . “CORE also has the ability to neutralize market risk on a dime if the conditions call for it.”

The buzz Earnings are rolling out from 3M MMM , whose outlook missed expectations, while GE GE also gave a downbeat outlook. Johnson & Johnson JNJ is getting a lift from its results. Verizon VZ and Lockheed Martin LMT are still to come, with Microsoft MSFT and Texas Instruments TXN headlining after hours.

We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 3. in NG
 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.

Nigeria Nigeria Latest News, Nigeria Nigeria Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Top Wall Street analysts pick these stocks to climb 2023’s wall of worryTipRanks analyst ranking service pinpoints Wall Street's best-performing stocks, including Apple and Spotify.
Source: CNBC - 🏆 12. / 72 Read more »