Tuesday, April 8, 2025

The Morning Call---Is recession inevitable?

 

The Morning Call

 

4/8/25

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/market-recaps/stocks-bonds-gold-dumped-us-dollar-liquidity-fears-grow

 

            Hedge funds hit with steep margin calls.

            https://www.ft.com/content/2e88e9ef-5026-44e3-89f9-c7a09ae7eefe

 

            Relief this morning, but…….

            https://www.zerohedge.com/markets/there-relief-markets

 

            Goldman traders turn bullish.

                https://www.zerohedge.com/markets/risk-reward-skewed-upside-goldman-traders-turn-bullish

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The March small business optimism index came in at 97.4 versus estimates of 101.3.

 

                        International

 

                        Other

 

                          Home prices continue to cool.

                          https://www.calculatedriskblog.com/2025/04/ice-mortgage-monitor-home-prices.html

 

                          Consumer credit numbers show consumer is finally down and out.

                          https://www.zerohedge.com/markets/6-sigma-miss-consumer-credit-confirms-us-consumer-finally-down-and-out

 

            Overnight News

 

Scott Bessent told Fox that “everything is on the table” in tariff talks but deals probably won’t be reached before the April 9 start date. He said Japan would get priority after swiftly reaching out to the US, but he noted that has not seen a trade offer from Japan; he added that maybe 70 countries have approached the US by now on trade and that Japan's non-tariff trade barriers are quite high, according to an FBN interview. Furthermore, Bessent said tariffs depend on negotiations which will be tough and the US will not likely have any trade deals in place by April 9th to avoid the retaliatory tariffs going into place, as well as commented that China has chosen to isolate itself by retaliating and doubling down on previous negative behavior.

 

Bessent having some success steering the White House tariff messaging away from permanence and toward negotiations after warning Trump of further market losses.

 

White House considers withdrawing 10K US troops from Eastern Europe, a move sparking alarms in the region given Russia’s aggression.

 

US President Trump posted on Truth "The Budget Plan just passed by the United States Senate has my Complete and Total Endorsement and Support. All of the elements we need to secure the Border, enact Historic Spending Cuts, and make Tax Cuts PERMANENT, and much more, are strongly covered and represented in the Bill."

 

Republicans increasingly embrace the idea of raising upper-income individual tax rates as they scramble to find revenue for their reconciliation bill.

 

            Fiscal Policy

 

              It is spending increases not tax cuts that is driving he deficit.

              https://thehill.com/opinion/finance/5230454-cbo-budget-projections-debt/

 

            Recession

 

              Near horizon recession probability.

              https://econbrowser.com/archives/2025/04/near-horizon-recession-probability-2

 

              Is recession inevitable?

              https://www.capitalspectator.com/is-a-us-recession-inevitable/

 

              Or are we already there?

              https://www.zerohedge.com/political/canary-sick-blackrocks-fink-says-most-ceos-telling-him-were-already-recession

 

              The labor market is just fine.

              https://wolfstreet.com/2025/04/04/the-stock-market-may-be-in-trouble-and-consumers-may-be-in-a-sour-mood-but-the-labor-market-is-just-fine/

 

              RecessionAlert weekly leading economic index.

              https://www.advisorperspectives.com/dshort/updates/2025/04/07/recession-weekly-leading-economic-index

 

              Summary of weekly economic indices.

              https://seekingalpha.com/article/4773123-weekly-indicators-stocks-commodities-crash-bonds-soar-consumer-spending-crack

 

            Tariffs

 

              Trump’s tariff aren’t reciprocal.

              https://www.cato.org/blog/trumps-tariffs-arent-reciprocal-are-massive-tax-increase-americans

 

              What Liberation Day means to the US economy and stock market.

                         www.apolloacademy.com/wp-content/uploads/2025/04/What-Might-Trumps-Liberation-Day-Mean-to-the-U.S.-Economy-Financial-Markets_040525.pdf

 

              China: the war has just begun.

              https://www.zerohedge.com/geopolitical/tariff-war-just-begun-beijings-new-tariff-target-list-leaked-bloggers

 

              The latest from John Mauldin.

              https://www.advisorperspectives.com/commentaries/2025/04/07/recession-tariff

 

     Investing

 

            Chaos.

            https://www.nytimes.com/2025/04/06/business/stock-market-plunge-investment-bank-impact.html

 

            And its consequences.

            https://ritholtz.com/2025/04/the-consequences-of-chaos/

 

            It is not like this was unexpected.

            https://talkmarkets.com/content/stocks--equities/asset-bubble-bug-finds-another-windshield?post=490854

 

            What to watch for.

            https://talkmarkets.com/content/stocks--equities/the-bears-dont-lie?post=490852

 

            Part 2.

            https://talkmarkets.com/content/stocks--equities/what-to-watch-amid-the-tariffs-driven-selloff?post=490794

 

            What is the Market pricing in?

            https://klementoninvesting.substack.com/p/invert-always-invert-the-tariff-edition

 

            Apparel brands and retailers most at risk.

            https://www.zerohedge.com/markets/tariff-shockwave-these-apparel-brands-retailers-most-risk-price-hikes

           

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            The purpose of a vacation.

            https://traderfeed.blogspot.com/2025/04/the-purpose-of-vacation.html

 

 

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