In today’s Closing Bell, I have a look at US regional banks after the scare during the week with New York Community Bancorp reporting increased stress in its commercial real estate portfolio.
You will remember the volatility early last year when three banks failed, causing central bankers to step in and stop the rot.
The troubles in the commercial real estate sector have continued to bubble beneath the surface, so I think it’s prudent to keep an eye on the issue going forward.
I also show you a bunch of US commercial real estate stocks so you can get a feel for the state of play.
I then show you the US 10-year bond yields which are continuing to rally and the S&P 500 which can’t seem to go down even when the US Fed chairman Powell tries to scare the pants off it with ‘higher for longer’ talk about interest rates.
I saw an article in the Australian discussing some research from JP Morgan that they are calling stocks down by the end of this year. They see the S&P 500 falling 13% from current levels.
While they think Australian stocks have a good shot at outperforming the states, they don’t see much upside from current levels.
My own trading model is currently bullish, but as I show you in the Closing Bell video today the situation can change rapidly.
I told you to consider getting on board uranium stocks months ago and that is one sector that is performing extremely well. Kazatomprom, one of the biggest producers of uranium in the world, announced that they won’t hit production targets next year due to difficulty in sourcing sulfuric acid.
That saw uranium stocks take another big leap higher yesterday.
If you did jump on a few uranium stocks when I gave you the list, I’d love to hear about it in the comments section on YouTube, and don’t forget to ‘like’ the video.
Regards,
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Murray Dawes,
Editor, Retirement Trader and Fat Tail Microcaps
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