How are we approaching the US Debt Ceiling?
Throughout history, the US government has hit the debt ceiling many times and we do not foresee this time to be the last.
Even though political tensions are very high and that a dispute resolution on raising the debt ceiling issue seems unlikely during the week where Biden, the Senate and the House meet, we are of the opinion that the US would still either raise or suspend the debt ceiling just before the deadline in order to prevent a financial Armageddon from happening.
Housing. Resilience or Froth.
It’s been 9 months since the Fed embarked on its rate hike cycle, and the S&P 500 has dropped by more than 15%. US credit card debt has ballooned from USD 846 billion in April 2022 to USD 963 billion as of October 28, 2022. With all signs pointing to a recession (in the US only, never Singapore of course), it’s amazing that market positioning and sentiment has remained so resiliently optimistic. The property market in Singapore is a case in point – exhibiting phenomenal divergence in transactions, price and rental rates. It looks bleak enough in the US, but surely Singapore is insulated some say?
The Domino Effect of US Interest Rate Hikes
Another round of interest rate hikes is upon us. Join us as we look at historical asset price patterns relative to previous interest rate hikes. We explore prices of SPX, CCMP, NKY, and more to investigate the trickle down effect of US interest rates.