The main headlines that the global financial media focused on last night and this morning were:
The latest interview with "Sister Wood": The United States will fall into deflation next year, and the Federal Reserve will cut interest rates sharply
Cathy Wood, founder of Ark Investment Management, revealed on Friday that her investment strategy for 2024 is to focus on innovation and technological advancement during expected periods of deflation.
Wood shared her insights on the market outlook for 2024 and her investment strategy in a TV interview on Friday.
Wood expects deflation in the U.S. economy, which she said will be a key theme in 2024, prompting the Fed to cut interest rates aggressively. This economic environment, combined with technological advancements, has created businesses that are well adapted to deflation and committed to innovation to achieve significant expansion in the coming years.
Fitch: 88% of U.S. regional home prices are overvalued, with an average of nearly 10% overvalued
In the second quarter of this year, national home prices were "overvalued" by 9.4 percent, meaning their prices did not match the real value of real estate, according to a new report released by Fitch on Wednesday. With home prices still rising, the rating agency said it expects "overvaluations to remain" in the coming quarters.
U.S. home prices soared 6.7 percent between January and September, although the average interest rate on a 30-year fixed mortgage once exceeded 8 percent this year, according to the Case-Shiller U.S. National Home Price Index. According to the National Association of Realtors (NAR), the median price of second-hand homes for all types of housing rose for the fifth consecutive month in November, up 4% year-on-year to $387,600.
Fitch also expects U.S. home prices to rise by up to 3% next year and another 2% to 4% in 2025. "This will continue to impact affordability, especially for entry-level homebuyers and first-time homebuyers, dampening demand," the rating agency wrote in a report on Wednesday. ”
Bull Adeni: The U.S. economy will "roll back" in the next two years, and the S&P 500 is expected to rush above 6,000 points
Edward Yardeni, president of Yardeni, a long-time Wall Street bull and president of Yardeni Research, believes that there are three main catalysts in the US economy that could trigger a sharp rally in the stock market over the next two years.
Yardeni predicts that the S&P 500 could soar to 6,000 points by the end of 2025, which means a 26% increase from current levels.
Yardene said in an interview on Friday that this would be due to the strength of the U.S. economy, which pushed the market higher.
"I've been talking about a rolling recession for the last two years, and I think in the next two years, we're going to have a rolling recovery," he added.
Nobel laureate Krugman: Forget about the stock market, the rise in bond prices is good news!
Nobel laureate Paul Krugman believes that the recent sharp rise in the price of US Treasury bonds is good news for the housing market and the huge US debt.
The economist referred to the recent spike in bond prices and the collapse in yields. For example, the yield on the 10-year Treasury note fell more than a percentage point from its peak in October, falling to around 3.9% on Friday.
Meanwhile, the iShares 20-year Treasury exchange-traded fund (ETF) has surged more than 20% since the end of October, suggesting that long-term Treasuries have officially entered a bull market.
Renowned economist Stephen Roach: Financial crises have become the new normal
Stephen Roach, a senior fellow at Yale University and former chairman of Morgan Stanley Asia, believes that the financial crisis is a new normal and that the impact on the economy may be "sooner rather than later".
In an op-ed on Thursday, he wrote that over the past few decades, there has been an average crisis somewhere in the globe every three to four years. Since the 80s of the last century, a series of disasters have been hitting the global economy.
"It's time to stop treating crises as exceptional events and acknowledge how often shocks actually happen," Roach said. He later added: "The crisis and the 'extraordinary' developments it has triggered are now the norm, not the exception." ”
Porsche is recalling more than 41,000 hybrid and electric vehicles in the United States due to the risk of fire in the charging cable
Porsche North America said it will recall more than 40,000 hybrid and electric vehicles in the U.S. because of the risk of overheating and fire in the charging cable.
Porsche North America's filing with the National Highway Traffic Safety Administration (NHTSA) said it would recall 41,345 vehicles, including its all-electric sports car, the Taycan.
When using a 220V/240V plug to charge a vehicle at 100% charge, some household electrical outlets may have difficulty managing the current required by the charging system, causing the outlet or charging cable to overheat. The company noted that this could increase the risk of fire.