Recession come at

If you're looking for capitulation in 2022, it's in the bond market. And that tells you that investors' confidence in the global economy is very low. Inside the stock market, it's all about defense. Defensive stocks, which include big healthcare companies and dividend-paying value stocks, have been driving the gains. An index of global defensive stocks put together by Goldman Sachs, which is heavy in healthcare giants, has climbed to more than an 18-month high relative to the MSCI AC World Index. Inside the U.S., the defensive ETF ticker DEF has been outperforming the Spider ETF SPY all last week and all year. For market watchers, this feels a whole lot like a recession trade. While investors in the capital markets are battening the hatches for a recession, money in the private markets is also drying up. The value of venture capital deals in the U.S. dropped more than 25% in the second quarter to just $1 trillion, according to Dealogic . M&A activity in the United States … [Read more...] about What the Business Cycle is Telling us About a Recession

Share to Twitter Share to Linkedin Topline High-profile stock picker Cathie Wood conceded to being wrong about the duration of high inflation that's contributed to her fund's steep decline this year while doubling down on her belief that the economy has fallen into a recession—defying a vast majority of experts noting a recession is unlikely this year despite growing odds of one next year. Key Facts “We think we are in a recession,” Wood, the founder and CEO of New York City's Ark Invest, said on CNBC's Squawk Box Tuesday, noting that excess inventory driving up costs and leading to wider-than-expected profit shortfalls for corporations like Walmart and Target is a "big problem" facing the economy. Wood first declared the U.S. had fallen into a recession last week, warning on Twitter that massive inventories (often viewed as a leading indicator for demand) have the potential to unwind and hurt growth for the rest of the year, as consumer … [Read more...] about Cathie Wood Claims Economy Already In A Recession—Warns Inflation And Inventories Pose ‘Big Problem’

Share to Twitter Share to Linkedin Topline High-profile stock picker Cathie Wood conceded to being wrong about the duration of high inflation that's contributed to her fund's steep decline this year while doubling down on her belief that the economy has fallen into a recession—defying a vast majority of experts noting a recession is unlikely this year despite growing odds of one next year. Key Facts “We think we are in a recession,” Wood, the founder and CEO of New York City’s Ark Invest, said on CNBC's Squawk Box Tuesday, noting that excess inventory driving up costs and leading to wider-than-expected profit shortfalls for corporations like Walmart and Target is a “big problem” facing the economy. Wood first declared the U.S. had fallen into a recession last week, warning on Twitter that massive inventories (often viewed as a leading indicator for demand) have the potential to unwind and hurt growth for the rest of the year, as consumer … [Read more...] about Cathie Wood Claims Economy Already In A Recession—Warns Inflation And Inventories Pose ‘Big Problem’

- A + A SINTRA/FRANKFURT (June 27): The European Central Bank (ECB) will activate the bond-purchasing firepower it has earmarked as a first line of defence against a possible debt-market crisis on Friday (July 1), according to President Christine Lagarde. Applying "flexibility" to how reinvestments from the ECB's €1.7 trillion (US$1.8 trillion) pandemic bond-buying portfolio are allocated is aimed at curbing unwarranted turmoil in government bonds as interest rates are lifted from record lows to curb unprecedented inflation. Net buying under a separate asset-purchase programme is also set to end on Friday — potentially exposing some of the eurozone's more-indebted nations to speculative attacks by investors. "We have decided to apply this flexibility in reinvesting redemptions coming due in the PEPP portfolio as of July 1," Lagarde said on Tuesday in a speech in Sintra, Portugal, where the ECB is holding its annual retreat. "We will ensure that the orderly … [Read more...] about ECB to activate first line of defence in bond market on July 1

- A + A (June 28): European Central Bank (ECB) president Christine Lagarde affirmed plans for an initial quarter-point increase in interest rates in July but said policymakers are ready to step up action to tackle record inflation if warranted. Speaking at the ECB’s annual retreat in Sintra, Portugal, Lagarde offered reassurances that a new anti-crisis instrument yet to be announced won’t stand in the way of tackling the fastest surge in consumer prices since the euro was introduced. Her remarks underline the ECB’s base case for normalising monetary policy as some officials float the idea of moving more aggressively. Governing Council member Martins Kazaks said earlier on Tuesday (June 28) that “front-loading” hikes, including a possible larger move next month, could be reasonable. Traders brought forward bets on rate increases, but only see a 25% chance of a half-point hike in July. “There are clearly conditions in which gradualism would not be appropriate,” … [Read more...] about Lagarde vows nimble ECB policy as July hike plan proceeds

The Supreme Court of the United States has handed down a bevy of decisions in the past week as it nears the end of its term and prepares to adjourn for summer recess. advertisement advertisement The court’s latest decision , posted Monday morning, rules that a high school football coach was exercising a constitutional right in praying on the field after games, in a case that could erode the separation of church and state across the country. The case centers on Joseph Kennedy, an assistant coach at a public high school in Bremerton, Washington, a small community outside of Seattle. For eight years, Kennedy would routinely pray at the 50-yard line immediately after games—often joined by student athletes, who would surround him, heads bowed, at the field’s midway mark. After an opposing coach commented on the practice at one of these games, the Bremerton School District warned Kennedy not to pray if it would involve students. A clash followed over … [Read more...] about In other SCOTUS news: Supreme Court ruling boosts school prayer

Share to Twitter Share to Linkedin The talent revolution is in full swing, and even with threats of a recession, tech workers will still be in high demand. They have the skills companies need and the ability to shift jobs with ease. Many employers assume tech workers want remote work—and that offering the opportunity to work away from the office is the best way to attract them and keep them around. But this is a myth with only 18% of tech employees preferring remote work, according to a new study. What do tech employees really want? And how should their expectations inform the way employers think about creating work experiences for all of their people? The Influence of Tech Tech workers are a great place to start in considering the work experience, because tech is a significant sector of the economy, and it is therefore influential for many other areas of work. In fact, according to data sources , the tech industry is the second biggest driver of the … [Read more...] about Think Tech Workers Want Remote Work? Think Again: 5 Ways To Respond

Share to Twitter Share to Linkedin I t’s hard enough for women to raise venture capital; of the more than $300 billion deployed to startups last year, women received just $6 billion, or 2%. And women of color get an even smaller piece of the pie; last year, according to Crunchbase , Black women received 0.35% of all startup venture funding. Mindright founder Ashley Edwards, 31, knows this reality all too well. But she’s also managing to beat the odds: Today she’s announcing a $1.8 million seed round for her company, which provides mental health services to underserved teens via SMS text messaging. Investors like Melinda French Gates and Lifeforce Capital were attracted to the company in part due to its team of specially trained coaches who check in with youth daily to help them manage the challenges of both crises and everyday stressors. The SMS structure of the service, which helps eliminate technical and financial barriers to traditional mental … [Read more...] about Is This 31-Year-Old The First Black Woman In New Jersey To Raise More Than $1 Million?

Share to Twitter Share to Linkedin Cryptocurrencies are famous for their wild price swings, and in their short history, they’ve gone through multiple cycles of scorching-hot summers followed by frigid, long winters. The last downturn began in early 2018 and lasted about two and a half years. Over the past three months, with inflation spiking and recession concerns spreading, bitcoin has dropped from a high of $48,000 to roughly $21,000 . Today, some top investors think we’re in for another painful, extended period of low prices. “The next two years are going to be really rough,” says Avichal Garg, a managing partner at Electrical Capital, a crypto investment fund with more than $1 billion in assets. His fundamental views on the industry’s promise haven’t changed. “New software developers are coming in , and we're seeing more and more high-quality founders. We see Web2 executives from Facebook and Google coming in at a faster clip,” he says. But one … [Read more...] about The Crypto Bear Market Could Last Two Years, Top Investors Say

- A + A NEW YORK/BENGALURU (June 28): Bank shares boosted the Dow Jones and the S&P 500 indexes on Tuesday, as the big four lenders raised dividends following a stress test, but a sharp drop in consumer confidence brought to fore the risks from rising inflation. Wall Street's main indexes started the week on soft footing on worries of rising prices and an aggressive Federal Reserve dominated sentiment. Economic data remains at the forefront of investors' focus amid few market moving catalysts till the start of earnings season in two weeks. The Conference Board said its consumer confidence index dropped 4.5 points to a reading of 98.7 this month, as worries about high inflation left consumers anticipating that economic growth would weaken significantly in the second half of the year. Investors are now looking at data to determine whether the economy can withstand large interest rate hikes by the US central bank to stamp out inflation. "People are coming into … [Read more...] about Dow, S&P boosted by banks; cautious on consumer confidence data