December 13, 2022
Tuesday
December 13, 2022
Hello everyone,
The CPI has been released and the markets breathed a sigh of relief as the numbers were softer than expected. Investors are hoping that this is the beginning of the end of inflation. All eyes are now on the Fed.
Bankman-Fried has been delivered more than a slap on the wrist. We have just learned that he has been denied bail in the Bahamas on FTX fraud charges as the judge has cited him as a flight risk.
What a foolish man he has been. Evidently, there was not a lot of grey matter working to determine the consequences of his actions.
He used customer funds to make political donations to both Democratic and Republican candidates. Apparently, he was trying to influence the direction of policies and laws in relation to cryptocurrency and the industry in general
He also stole money from FTX clients and parked it in his own hedge fund.
Well, you might not own a hedge fund, but you might own a property, or even be renting one out. If so, more of the same macro-economics in relation to real estate is in the crystal ball for 2023. Escalating demand and tight supply are likely to see rental increases persist, but more so in the capital cities than in the regional areas.
Higher interest rates are reducing borrowing capacities and reducing property prices. In 2023, expect this trend to continue.
If we look to the long term, when prices decline, interest rates stabilize and wages grow, we hope to see market conditions improve.
Always be mindful of a black swan lurking in the shadows. Hang on tight during the volatility. It, too, will pass.
I’ll be holding a Mad Hedge Christmas zoom get-together on the weekend. All welcome. Will send out the link in 24 hours.
Share your story with other Mad Hedge clients and pick up lots of good hints for trading the market.
All the very best.
Cheers,
Jacque
"Never let the fear of striking out keep you from playing the game." - Babe Ruth
