About the Video
Weekly stock market analysis – US Q2 GDP, Consumer Confidence Index, UK’s Recession, PCE Price Index and more.
🔴 𝗦𝘁𝗮𝗿𝘁 𝗜𝗻𝘃𝗲𝘀𝘁𝗶𝗻𝗴 𝘄𝗶𝘁𝗵 𝗜𝗕𝗞𝗥 ➡️ Click Here
⬇️Timestamps:
0:00 → Economic Updates
2:06 → US Q2 GDP (Final Reading)
2:51 → Consumer Confidence Index
3:46 → United Kingdom’s Near Recession
6:27 → Personal Consumption Expenditure (PCE) Price Index
7:50 → Upcoming Important Dates
The British economy nose dived when Liz Truss, the newly elected UK Prime Minister announced a £45 billion tax cut that was the largest since the 1970s to help the UK netizens to cope with the 40-year high inflation and energy crisis etc. As a result, the British pound had a flash crash and plummeted to a record low against the USD, their major stock exchanges and bond market also crashed as well, and before the UK economy crashes to the ground, the Bank of England, which is the UK’s central bank, had to intervene by announcing an unlimited bond-buyback program to avoid a gilt crash (i.e. turning the money printer back on and print money in order to stop the UK economy from crashing even further).
The US consumer confidence rose for a second month in September to the highest since April, indicating a strong job market and lower gas prices are contributing to more optimistic views of the economy.
The spread between the yields on the 10-year and 2-year Treasury notes has been inverted for more than a month, and is now standing at -0.44%. An inverted yield curve has historically been a reliable indicator of a coming recession, coming most recently before downturns in 1990, 2001, and 2008. While brief inversions typically don’t predict a downturn, ones that last beyond a momentary flashing can have stronger predictive power.
The personal consumption expenditures price index, which the Federal Reserve uses for its inflation target, rose 0.3% from a month earlier, topping estimates. From a year ago, the gauge was up 6.2%, also higher than forecast and well above the central bank’s 2% goal. Excluding food and energy, the price index rose 0.6% in the month and was up 4.9% from August 2021. Both marked an acceleration in inflation from a month earlier and exceeded economists’ expectations.
If you’re a long term investor and you have faith in the viability of a given company or market index, you might be well served to buy these dips in the market. As the market may continue to fall further downward, you can continue to buy stocks at steeper discounts, this approach is called dollar cost averaging (DCA). For the people that have been sitting on cash or waiting for the right time to get in the market, a DCA approach is a great one to look at right now.
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Disclaimer: The content on this channel is for educational purposes only and merely cites my own personal opinions. In order to make the best financial decision that suits your own needs, you must conduct your own research and seek the advice of a licensed financial advisor if necessary.
