The remarkable surge in the value of Bitcoin has sparked interest across various sectors. A pertinent question is emerging: Should Bitcoin be recognized as a legitimate asset class alongside traditional markets such as stocks, bonds, real estate, and commodities?
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Fed funds futures indicate a strong likelihood of an interest rate increase at the upcoming FOMC meeting. However, this expectation seems disconnected from the recent downward trend of the 10-year Treasury yield, which has been on a sharp decline in the past weeks.
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Preliminary estimates suggest that US economic activity will gain momentum in the second quarter. The official GDP report for Q2 will be released in late July, which introduces a certain level of uncertainty regarding the final numbers. Currently, however, projections lean towards a marked recovery following a lackluster 1.2% increase in Q1.
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International property shares and real estate investment trusts (REITs) outside the U.S. have emerged as the leading performers among the major asset classes for the five trading days ending June 2, based on selected exchange-traded products. This achievement marks the fifth consecutive week of gains for these investments.
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By Rick Wartzman
Review via Publishers Weekly
Rick Wartzman explores the decline of loyalty between companies and employees in major U.S. corporations in this thought-provoking economic narrative. He highlights the “great American dream” of securing a “good job” — a dream that is increasingly out of reach. Wartzman uses the example of driving for Uber as representative of many contemporary jobs in the U.S. that lack long-term relationships between employers and employees. He presents troubling statistics indicating that many Americans are ill-prepared for retirement due to low wages, inadequate pension plans, and rising healthcare costs, even as corporate profits surge to unprecedented levels. To delve into how this shift occurred, he analyzes four major American companies—General Electric, General Motors, Kodak, and Coca-Cola—over the past 70 years, identifying factors that have eroded the corporate social contract, including globalization, corporate downsizing, ineffective labor unions, and, importantly, a prioritization of shareholders over employees.
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In May, U.S. companies added 147,000 jobs (seasonally adjusted), according to a recent update from the Labor Department. This figure falls short of expectations, with Econoday.com forecasting a 173,500 increase in payrolls. Additionally, this marks a decline from April’s increase of 173,000. Yet, the overall year-over-year comparison showed slight improvement. Overall, this report suggests that the labor market is stable, albeit growing at a moderate pace.
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The anticipated risk premium for the Global Market Index (GMI) increased in May. The GMI, which comprises a mix of major asset classes, is projected to yield an annualized 5.4% over the “risk-free” rate in the long term, representing a 20 basis point increase from the previous month’s estimate.
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International markets drove most major asset categories upward in May. Leading the pack were foreign high-yield bonds, with Markit’s Global ex-US High Yield Index surging 3.8% in unhedged U.S. dollar terms, marking its highest monthly gain in over a year. The only declines were seen in U.S. real estate investment trusts (MSCI REIT), which fell by 0.6%, and commodities (Bloomberg Commodity), which decreased by 1.3%.
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Bloomberg reports that a rate hike at the Federal Reserve’s June 13-14 policy meeting is almost guaranteed, based on Fed funds futures data. This suggests that the recent flattening of the Treasury yield curve may continue.
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Concerns about a potential recession are widespread—you’re certainly not alone in worrying about this.
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