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Economictrends

All articles tagged with #economictrends

finance-and-economy2 years ago•2 min saved

"Strategies for Navigating the Volatile Small-Cap Market in 2024"

The Russell 2000 index, which tracks small-cap and midcap stocks, may seem cheaper than last year with a reported P/E ratio of 11.8, but this figure is misleading as it excludes unprofitable companies. When accounting for these, the true P/E ratio is 27.1. Additionally, the economy is shifting towards a winner-take-all model, where the largest corporations dominate profits, leaving smaller companies with a shrinking share. This trend, coupled with the lackluster earnings growth among small- and midcap stocks, suggests that the S&P 500, which is comprised of larger companies, is likely to continue outperforming the Russell 2000.

via MarketWatch|

##economictrends #finance-and-economy

economy-and-business2 years ago•2 min saved

"Mortgage Applications Dip Despite Interest Rate Decline and Mixed Housing Market Signals"

Despite a decrease in mortgage rates, the Mortgage Bankers Association reported a 9.4% drop in home-purchase applications for the week ending December 29. The average rate on a 30-year loan ended the year at 6.76%, down from an October peak but still high compared to pre-pandemic levels. The housing market remains sluggish due to high rates and a significant 45.1% drop in available home supply since early 2020. Refinance applications also decreased, though they are 15% higher than the previous year. The Federal Reserve's rate hikes have cooled the housing market, but recent declines in mortgage rates offer some optimism for 2024.

via Fox Business|

##economictrends #economy-and-business

economy2 years ago•2 min saved

"2023-2024 Forecast: US Bankruptcy Filings Soar with Employee Safeguards Intact"

U.S. bankruptcy filings increased by 18% in 2023, driven by higher interest rates, stricter lending conditions, and the phasing out of pandemic-era support, with a total of 445,186 filings. Commercial Chapter 11 filings saw a significant rise of 72%. Despite the increase, bankruptcy levels are still below pre-pandemic figures. The trend is expected to continue into 2024, influenced by the end of pandemic stimulus, increased borrowing costs, and record-high household debt. However, financial conditions showed signs of easing in the fourth quarter of 2023 as the Federal Reserve hinted at the end of its rate-hike cycle.

via Reuters|

##bankruptcy #economictrends

businessfinance2 years ago•0 min saved

"Private Equity's 2024 Outlook: Navigating Exits, Capital Glut, and Dealmaking Evolution"

Private equity groups are seeking new exit strategies as they face an accumulation of cash, prompting them to explore alternative ways to deploy funds and realize returns on investments. This shift comes as traditional exit routes, such as initial public offerings (IPOs) or sales to other companies, may be less viable in the current economic climate. The article suggests that these groups are adapting to market conditions to maintain profitability and meet investor expectations.

via Financial Times|

##businessfinance #economictrends

economy-and-finance2 years ago•10 min saved

"2024 Economic Forecast: Key Trends to Monitor"

As we head into 2024, key economic trends to watch include a cooling labor market with job openings decreasing, inflation rates nearing target levels, the possibility of the Federal Reserve cutting interest rates, improving consumer sentiment, and a potential "Goldilocks" scenario for economic growth. Corporate profit margins remain high, and interest expenses for companies are stable despite rising rates. Analysts expect S&P 500 earnings to grow, and stock market trends suggest a potential continuation of the bull market, with historical patterns indicating positive returns in election years and following market rebounds. However, uncertainty remains a constant factor, with the potential for unforeseen events to impact the economy and markets.

via AOL|

##corporateearnings #economictrends

economy-and-finance2 years ago•10 min saved

"2024 Economic Outlook: Trends, Optimism, and Predictions Amidst Uncertainty"

As we head into 2024, key economic trends to watch include a cooling labor market with job openings nearing pre-pandemic levels, inflation rates stabilizing near the Federal Reserve's target, and the possibility of the Fed cutting interest rates. Consumer sentiment is on the rise, potentially signaling continued economic growth and a "Goldilocks" scenario. Corporate profit margins remain high, and while interest expenses have not significantly increased, the impact of new borrowing is worth monitoring. Analysts predict a rise in S&P 500 earnings, and stock market trends suggest a potential continuation of the bull market, influenced by historical patterns and election year dynamics. However, Wall Street strategists may revise their targets based on market performance, and as always, unforeseen events could impact economic outcomes.

via Yahoo Finance|

##corporateearnings #economictrends

economy2 years ago•0 min saved

"South Korea's Trade Dynamics Shift Amidst Chip Slump and Export Market Changes"

South Korea experienced its first trade deficit with China in 31 years, with a shortfall of $18 billion in 2023. The country's exports to China dropped by 20% to $124.8 billion, while imports from China decreased by 8% to $142.8 billion. Despite the deficit with China, South Korea's overall trade deficit narrowed as its exports to the U.S. increased.

via Nikkei Asia|

##china #economictrends