French stocks posted their worst performance in decades in 2024, particularly underscored when compared to the U.S market. The CAC 40, which tracks the 40 largest French companies on the Paris stock exchange, has experienced sluggish long-term growth with a slight gain of 18% since 2000. The index is heavily concentrated in key sectors like luxury goods and financial services, making it susceptible to sector-specific downturns. Persistent investor concerns revolve around political instability, continued high inflation, and diminishing foreign investment. Also, the higher borrowing costs in France compared to other EU nations add to the pressure on companies that rely on debt for growth and operations. ...

Wildfires, particularly in the western US, have been becoming more severe over the past few years due to climate change. Hot and dry conditions create an ideal environment for wildfires, which have proven to be destructive both to property and human health. The University of Colorado, which has been researching this issue said there is a clear connection between the rise in temperature and the increase in wildfires. The heat dries out the vegetation, making it easier to catch fire and burn. In addition to this, warmer winters result in more pests surviving through the season, which further damages the vegetation making it prone to fires. ...

The US national debt has been growing since the 1980s and the bill is finally coming due. With the national debt currently sitting at $36 trillion, financial experts warn that the US is borrowing too much money. Critics blame political dysfunction and lack of agreement on measures to address the large annual fiscal deficits. Despite warnings of high unemployment, the US economy has remained robust. However, the downgrade of the US credit rating by Moody’s from “stable” to “negative” is a clear indication of the looming debt crisis. This has already led to higher US rates, which could worsen the fiscal problem if not addressed. ...

U.S. banks are in jeopardy as data from the Federal Deposit Insurance Corporation (FDIC) displays unrealized losses climbing to $482.4 billion in Q4 2024. This is a substantial increase of 32.5% from the previous quarter. Apollo Asset Management’s chief economist, Torsten Slok warns of a threat if the U.S. economy experiences stagflation - a combination of rising prices, rising unemployment, and slowed growth. This could result in higher rates for longer and increased credit losses. Former Federal Reserve staffer Rebel Cole is adamant that despite these losses not yet appearing on income statements unless the investments are sold, one bad news story could trigger a banking crisis. ...

Citigroup CEO, Jane Fraser, has issued a warning about the state of global markets, suggesting the world is entering a “new phase of globalization” defined by self-interest rather than cooperation. In a blog post, Fraser wrote that markets are signaling a “shift”, pricing in greater risks. Fraser explained that long-held certainties are being reevaluated with capital tilting more towards Japan, India, and parts of Europe while sovereign wealth funds are diversifying more aggressively and hedging against the dollar is now at its highest levels in years. ...

U.S. sovereign downgrade by Moody’s has prompted concern among investors about the escalating American debt that currently stands at $36 trillion. While President Trump is pushing for his broad tax-cut bill that secured approval from a key Congressional committee, the Moody’s rating cut has made investors more cautious about the fiscal policy that is presently under negotiation. Experts believe this downgrade, following similar actions by Fitch and Standard & Poor’s in previous years, will eventually lead to an increase in borrowing costs for the U.S public and private sectors. Moody’s has expressed skepticism if material reductions in deficit can occur, given successive administrations have been unsuccessful in reversing the trend of growing fiscal deficits and interest costs. ...

I’m always monitoring economic data for clues about where the broader market and sentiment might be headed. Since I’m a visual thinker, I like to create charts—like my egg price and median house price charts. In this post, I’ll share my Python code for generating a chart that overlays the 2-year/10-year Treasury yield spread with the current jobless rate, highlighting recession periods for context. I track this chart closely because the 2-year/10-year spread has historically predicted recessions whenever it turns negative. However, the timing of a recession remains uncertain. This is where jobless rates become a crucial indicator—when employers start shedding jobs, the likelihood of a recession increases. ...

I “retired” in November 2024 after being laid off by a startup that shall remain unnamed. The severance package carried me through the end of the year, but I needed a new income stream. Thankfully, my wife works full-time, but I wanted to contribute and at least partially offset my lost income. So, what did I do to backstop my financial loss? I turned to selling option premiums—lots of them. My journey began in April 2024 when I started buying premiums, and I made a tidy profit. Then hubris struck. I tried to replicate my success, only to lose my gains—and then some. Lesson learned. ...

MyPillow and its CEO Mike Lindell are once again suing a merchant cash advance company, this time accusing New York-based Merchant Capital of charging an overly high interest rate. The lawsuit, which is the third of its kind, alleges Merchant Capital deceived “cash-strapped” MyPillow into borrowing $2 million in July, with daily repayments of $41,400. It claimed the agreement had a series of “one-sided and unconscionable” provisions. Merchant Capital previously sued MyPillow for non-payment, maintaining the company ceased allowing daily debits from its bank account in October and still owes $678,000 of a total repayment cost of $2.9 million. ...

Chinese artificial intelligence startup DeepSeek’s latest AI model has rattled global technology stocks, including those of chip-makers like Nvidia Corp. This budget-friendly model can function on less advanced chips, creating doubts about the value of companies that have been driving the AI stock boom with high-end chips. The announcement of the cost-effective model led to a 10% drop in Nvidia’s shares and overall, the market experienced a wipeout of approximately $1 trillion in capitalisation. The model is lauded as competitive with OpenAI and Meta Platforms Inc.’s latest offerings and has been praised for its transparency. DeepSeek’s success has boosted Chinese AI-related stocks while causing a slump in AI trades elsewhere. ...