We will be giving some macro economic market updates on a weekly basis. No equity recommendations will be given in this commentary, and we encourage you to contact us if you have questions regarding any observations.
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This weeks issue: Global trade, Exports and imports, Global economic growth, NFT market, market bubbles, Bored ape NFTs, China, Russia, U.S., Global conflicts, BRICS, VIPS, Military alliances, ESG funds, BlackRock, State Street, Oil prices, Energy prices, Consumer spending, Inflation, Mexican election, Mexican equities, Mexican economy, Government shutdowns, Congress shutdown, IPO market, 2008 financial crisis.
The global economy hits the brakes.
Global trade is a major indicator of the health of the global economy. Many economists use a blend of economic growth, investment, consumption, unemployment levels, and international trade to track global macroeconomic performance.
This week, it was reported that global trade fell at its fastest pace since the early days of the COVID-19 pandemic. You remember, those early days of COVID-19 when people were stuck on cruise ships, stores closed, restaurants closed, oil prices plunged, and global commerce screeched to a halt. Well at that point global trade fell year over year by approximately 19%, a massive drop reflecting the struggles of the global economy. This past week it was reported that global trade is down almost 5% over the last year. This slowing demand reflects consumer spending decreasing and the impact of rising interest rates across the world.
This slowdown in global trade could impact top and bottom-line numbers for companies across the world that depend on consumer spending and that produce non-necessity goods or services.