After opening higher on little news the major averages struggle into the final hour with modest losses. Elon Musk walks his Tesla buyout statements back after the Saudis and Softbank say they’re not interested at $420 share. With lawsuits already flying Musk may well come to regret these poorly considered statements. Emerging market troubles spread as the combination of record debt, higher US interest rates and a raising US Dollar as liquidity dries up through the Fed balance sheet reduction program continue to bite.
The collapse of retail continues as 2018 sees 57 plus chains closing stores this year that number some 3,800 locations nationwide. Real estate metrics company Reis Inc noted that mall vacancies have reached a 6-year high of 8.6% in the 2nd quarter. The closings run the gamut in retail from Apparel to Pharmacies and then some.
On the heels of a solid corporate earnings reporting season, financial markets seem to be oblivious to mounting corporate debt levels that like student, auto and credit card debt has reached a new record high as measured against GDP or Gross Domestic Product. With the Fed raising rates, Trump throwing around material trade tariffs like Halloween candy and record debt levels You have to wonder just how long this party is going to last. Because while nothing seems to matter anymore, my best guess is that one day it will a great deal.
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