6-27-24 Market Downtrend: Understanding Snowball Effects and the Role of the Fed

Wrapping up the month of June, and the start of a new Quarter in July: Expect market volatility. Micron's miss will weigh on tech sector. Analysts' estimates have dropped by $5/share for Q3, lowering the bar in anticipation of next reporting season. Final Q1 GDP revision due today. Moving closer to July Fed meeting and possible rate cuts? Jobless claims are climbing. Options markets begin to bet on Presidential election outcome. Why is Wall Street selling off Nvidia now? Debate preview & potential drinking games thereof; July Fed meeting preview; it's a boring Fed for now. Banks passing their strees tests (is this a joke?) There is greater stress on collateral due to higher interest rates. What are the implications of dirt cheap sales of commercial real estate, backed by banks? Distressed debt. What's wrong in Japan, selling $63-B in bonds over 9-months is meaningless. Two options: Keep a lid on interest rates, or keep the Yen from falling. Central Banks & Gov'ts wrk together. Why it's in everyone's best interest to keep the US Dollar as liquid as possible. Dedollarization & Petrodollar nonsense, concern for higher rates, and the long view is for lower eates. Lance & Michael discuss the potential impact of AI, and the market's current downtrend and its potential to escalate into a larger financial concern. He highlights the importance of monitoring market signals and the role of the Federal Reserve: Impact of market deterioration and rising volatility; Significance of increasing shorts in the market; Potential for a snowball effect in market trends; Critical importance of the Federal Reserve's actions; the Implications of a possible rate cut by the Fed in July.
3:12 - Why is Wall Street Selling Off Nvidia?
14:40 - Banks Pass Stress Tests & Real Estate Deals Done Dirt Cheap
30:16 - What's the Worry About Japanese Bond Sales?
44:36 - The Impact of AI & Behind the Scenes in a Bullish Market
Hosted by RIA Advisors Chief Investment Strategist Lance Roberts, CIO, w Portfolio Manager, Michael Lebowitz, CFA
Produced by Brent Clanton, Executive Producer
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Articles mentioned in this report:
"Why Economists And Citizens Have Different Inflation Realities"
realinvestment...
"S&P 6300? Is That Outside The Realm Of Possibility?"
realinvestment...
"Bad Breadth Keeps Getting Worse"
realinvestment...
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The latest installment of our new feature, Before the Bell, "Why Is Wall Street Selling off Nvidia?" is here:
• 6-27-24 Why Is Wall St...
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Our previous show is here: "The Irony in Consumer Confidence"
• 6-26-24 The Irony in ...
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[@Fish_Ventura]

Thx guys

[@Ryan-ud8tx]

Would love to hear y’all’s thoughts on small caps specifically sometime

[@darrenhere5856]

Trending: Micron Posts Better-Than-Expected 3Q Earnings 10:14 AM ET 6/27/24 | Dow Jones Lance is good but Micron did not miss estimates....

[@martinithechobit]

Yaaaa.

[@darrenhere5856]

For its fiscal 2024 third quarter (ended May 30), Micron generated revenue that surged 82% year over year to $6.8 billion, driving adjusted earnings per share (EPS) to $0.62, compared to a loss of $1.43 in the prior-year quarter. Analysts' consensus estimates were calling for revenue of $6.67 billion and adjusted EPS of $0.50, so Micron easily cleared both benchmarks.

[@CereneSetliff]

Interesting thought about AI. I met with a client recently (I’m an attorney - so AI.might take my job). I had a list of points to discuss based on my understanding of the client’s industry and goals. Instead, the client had a much longer list of points to cover, many irrelevant. Some of the most relevant discussion points were not on the list. The result was a much longer meeting, which is fine because I bill by the hour. The list came from AI. So maybe I like AI. No way I’m at risk based on that list!

[@lsu205]

3% fed funds rate is normal.

[@jmcmob608]

Thank you very much...

[@karlbork6039]

33X

[@TheRealInvestmentShow]

...and I now count 25+ messages from you on this word count.

[@karlbork6039]

@@TheRealInvestmentShow Saying it over and over and over is outside the realm of normality.