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Are Stocks Doomed?
Episode 9126th September 2023 • Two Blokes Trading • Rory & Jonathan! (Two Blokes Trading)
00:00:00 00:24:08

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In this episode the blokes breakdown the markets & ask the question are stocks doomed?

The blokes discuss how it’s a great time to be trading! Markets are directional which presents huge opportunity to capitalise.


Rory also tells us how McDonald’s was founded. Have you watched the movie about McDonalds? If not it’s a great watch for anyone with an entrepreneurial mindset. I won’t spoil it here but I do suggest to watch it.


This week In markets we focus on Yields, consumer confidence, dollar strength and equities which remain pressured as market sentiment shifts!


A weak bond market which is effectively pushing yields higher and strength into the dollar is playing havoc on the equity market. As of 6pm London time on Tuesday, the S&P500 was down over -1.1% as dollar continued to surge and yields on the 10yr pushed past 4.5%.


Fed Member Neel Kashkari reiterated his statement that he expects another rate hike this year however that was closely followed by a statement saying he thinks there’s a 60% chance of a soft landing. I feel like he’s been told to say this as markets reacted the first time and ignored him on the latter.


China is also facing problems with the housing market under pressure and the major Evergreen defaulting on a 4 billion yuan payment which is putting pressure on the Chinese Yuan and Chinese equities which is also spilling into European and US markets.


Oil continues to hold at higher levels even though it is somewhat softer the last few days. Some economists have warned if oil exploration in the US is not more heavily invested in then there is risk of an under supply and prices pushed past $120 and even as high as $150.


Some favourite stock picks this week are still short ideas on UAL from Rory as higher fuel costs and potential for lower fares coupled with lower demand could impact top and bottom line. Jonathan is keeping an eye on MSFT to see whether their latest investment into the AI race will allow the stock to find some support.


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