debtceiling
When it comes to stock market sentiment, there are a lot of factors that come into play. As of May 2023, the biggest is the debt ceiling of the US. Recent developments have led financial analysts to predict a potential drop in stock market prices in the near future, so let’s take a look at the factors that are pointing to potential issues in the coming months. Current US Economic Factors Impacting Stock MarketsWith the Federal Reserve tightening, fiscal giveaways as a result of Covid 19 and the cap on student loan payments across America initially driving GDP and inflation, excessive governmen...
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In his podcast addressing the markets today, Louis Navellier offered the following commentary. Ford Motor Co (NYSE:F) announced this week that it has secured lithium supply deals with Albemarle, Livent and SQM to save $7 billion in costs relative to its competitors. As Ford shifts to utilizing more iron-phosphate (LFP) batteries, it actually needs more lithium, since LFP batteries require more lithium than lithium-ion batteries that also use expensive cobalt and nickel. The electric vehicles (EVs) that use LFP batteries will be cheaper and a price war is expected to breakout for EVs, just like...
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In his podcast addressing the markets today, Louis Navellier offered the following commentary. Big Day for EnergyThe energy disruption from the massive forest fires in Alberta is reducing North America supply and helping the other energy stocks that I continue to hold. A collapse in gasoline inventories before the Memorial Day weekend bodes well for our refining stocks, since the U.S. will soon be approaching peak summer demand. Finally, OPEC+ meets on June 4 and further production cuts may be announced. As a result, I am planning on continuing to hold many energy companies, especially those t...
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The debt ceiling is dominating headlines as we narrow in on the potential X-date—at which time the U.S. Treasury will have insufficient cash to pay interest on the debt along with its other obligations. That date may arrive in early June, or potentially even sooner. While the likelihood of a U.S. government default is very low, the chance that this will be an issue until the very last minute is high. What Is The Debt Ceiling?There are two ways the US government pays its existing bills: tax revenue and proceeds from debt. Its bills include Social Security, Medicare, Medicaid, military expenditu...
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As the June 1 deadline fast approaches for the Democrats and Republicans to agree on what to do with the debt ceiling, various strategies are being articulated that might have negative consequences for the US economy and the global financial system. Unconventional ProposalsThere is a Democratic proposal to mint a $1T coin and deposit it in the Treasury General Account to give it a few more months of money to spend. Another is to use Section IV of the Fourteenth Amendment of the US Constitution which reads as follows: “The validity of the public debt of the United States, authorized by law, inc...
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In hisDaily Market Notes report to investors, Louis Navellier wrote: Climbing Wall of WorryS&P 500 climbed the wall of worry and briefly broke 4,200 this morning. Despite the unresolved debt ceiling negotiations, the continuing pressure on regional banks, the disappointing reopening data out of China, and red flags of consumer spending, stocks have ground higher this week. All the major indexes are higher this morning and the VIX is back down to 16. At the same time, interest rates are staging a major increase across the yield curve with the 2-year now 4.33% and the 10-year 3.71%. There’s now ...
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My warning came true… The US government runs out of money in 13 days… Should you dump your stocks?… Markets Are About To Hit A Brick Wall1. I said this would happen. The reason was simple: I knew the “debt ceiling drama” was around the corner. The following month, stocks started falling… and they haven’t recovered. And as expected… worries of a potential US default is by far the biggest story in finance. It’s plastered all over the front page of Bloomberg… Legendary trader Stan Druckenmiller warned the US debt crisis is “worse than I had imagined.” Former Federal Reserve vice chairman Bill Dud...
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In his podcast addressing the markets today, Louis Navellier offered the following commentary. The mega cap technology stocks continue to lead the overall stock market and the seven largest technology stocks, namely Alphabet (NASDAQ:GOOGL), Apple (NASDAQ:AAPL), Meta (NASDAQ:META), Microsoft (NASDAQ:MSFT), Netflix (NASDAQ:NFLX), Nvidia (NASDAQ:NVDA) and Tesla (NASDAQ:TSLA), now account for 24.7% of the capitalization weighting in the S&P 500 and 53.156% of the NASDAQ 100. At least three of these stocks, namely Alphabet (Google), Microsoft and Nvidia, are prospering from the artificial intellige...
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In his Daily Market Notes report to investors, Louis Navellier wrote: Debt Ceiling Discussions PlannedLots of Fed-speak, and debt ceiling discussions this morning. Stocks were higher pre-market on news of further debt ceiling discussions planned. Then interviews with a couple of Fed governors where comments were made about even though inflation trends are encouraging we are far from the 2% target, that another increase may be necessary to keep it going, and cuts this year are very unlikely. Stocks promptly slid into the red. In the last 30 days, the Dow is down 2.2%, the S&P down 0.8%, the NAS...
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In his podcast addressing the markets today, Louis Navellier offered the following commentary. Great News For The Domestic Natural Gas IndustryThe Biden Administration’s Environment Protection Agency (EPA) introduced a proposed emission rule for utilities designed to lower carbon dioxide emissions. Interestingly, the EPA exempted natural gas peaker power plants that turn on and off during peak load demand, like during high air conditioning demand. Please excuse me, but if natural gas peaker power plants are exempt from the proposed EPA rules, won’t the utility industry just install more peaker...
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