Home 2022 Commentary: Paul Ebeling on Wall Street and Beyond

#PaulEbeling #WallStreet #Fed #CBDC #SP500 #earnings, #bitcoin #ether #stablecoin, #Bulls #bears #cryptocurrencies #DeFi #NFTS


“Investors are preoccupied with Russia/Ukraine, as it quietly sets up for then next Bull leg” — Paul Ebeling

The Super Bowl market study is arbitrary and tongue-in-cheek, so no pros will be trading on these results, it is for entertainment purposes only. The study finds that when there is an action-packed offensive game with a combined score of 46 pts or more, stocks are up 13.7% those yrs Vs only 9.9% gains when the score is under 46. There you go!

Since the beginning of this yr, business news has been flooded with stories about historic market volatilitydecades-high inflation rates, and an increasingly hawkish Fed.

Meanwhile, it is earnings season. And corporate America has been announcing lots of good news with its Quarterly financial results. Against this this backdrop, a real Bullish story has emerged: Expectations for earnings growth are being revised up!

“Since the beginning of the earnings season, Q-4 Y 2021 EPS has been revised up 4.3% to $53.48 (+26% y/y) and Y 2022 EPS has been revised up 0.6% at $224.90 (+8% y/y). And looking to Y 2023 EPS has been revised up 0.7% since the beginning of the earnings season to $247.54 (+10% y/y). We are Bullish with a huge cache of dry powder.], as our evidence shows prospects are more Bullish than bearish.

Added to that, global central bankers are urging traders against bets on a supersized policy response to soaring inflation, on hope they can successfully cool mounting price pressures without derailing economic recoveries.

Plus: The stablecoin boom make digital dollar push urgent

The rise of cryptocurrencies is the biggest financial trends to emerge in many yrs, and it raised the stakes for regulators to exert more influence over the sector, while protecting investors.

The rapid adoption of digital tokens has made the development of a central bank digital currency (CBDC) an urgent proposition, a Top official told us, especially as a multi-agency debate unfolds over crypto regulation.

“We absolutely support an urgent study of CBDC,” Treasury Under Secretary for Domestic Finance said in an interview last wk. He believes a Fed coin will probably determine how stablecoins coexist with a CBDC, which can happen. And it is possible a CBDC could supplant stablecoins, depending on the kinds of features the Fed would choose for it.

The Fed is currently reviewing the pros and cons of issuing a CBDC after releasing a report last month. Analysts like Shayne and me are postulating what impact it might have on stablecoins and financial markets. But we do not see anything happening yet this year. Stay tuned…

Have prosperous week, Keep the Faith!

You may also like


Your Trusted Source for Capital Markets & Related News

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.