Money

The dollar is finished as the world’s currency, analysts predict

Published

2 years ago

January 30, 2024

Ahron Young

Recently retired financial analyst Richard X. Bove has predicted that China will surpass the United States in terms of economic power, causing the US dollar to dramatically collapse.

Bove, an 83-year-old banking expert known for his often unconventional predictions, has declared that “the dollar is finished as the world’s reserve currency.”

Bove’s proclamation, although attention-grabbing, aligns with the long-term outlook shared by many analysts, suggesting that China is on track to become the world’s leading economy within the next decade.

Property sector

Despite China’s recent economic challenges, including the collapse of its property sector, which constitutes approximately a quarter of its economy, Bove remains steadfast in his prediction.

In contrast, the US economy has demonstrated resilience, exceeding expectations in the final quarter of the previous year.

Bove explained that his prediction is not echoed by other analysts because they are unwilling to challenge the mainstream financial system that sustains their livelihoods.

He likened them to “monks praying to money,” emphasizing their dependence on the existing financial establishment.

Audacious predictions

Throughout his illustrious career, Bove has made several audacious predictions, some of which have proven accurate. Notably, he predicted the 2008 housing crisis three years before it occurred in a 2005 report titled “This Powder Keg Is Going To Blow.”

Bove’s career has been marked by controversy, with his unconventional forecasts occasionally sparking criticism within the industry.

He was terminated from two prominent firms, Dean Witter Reynolds and Raymond James, with Dean Witter Reynolds citing his excessively bullish stance on bank stocks as the reason for his dismissal.

He also faced legal disputes, including a lawsuit from BankAtlantic over a critical 2008 research report they considered defamatory.

Despite mixed opinions in the financial world, influential figures like Jamie Dimon, the CEO of JPMorgan Chase, have expressed support for Bove’s insights, while others like Bank of America’s Brian Moynihan hold a contrasting view.

Growth rates

Bove’s latest forecast is consistent with the projections based on current growth rates, indicating that China’s GDP will surpass that of the US within the next decade, as reported by World Economics.

Although the US economy displayed robust growth in the last quarter of the previous year, while China faced challenges in its property sector, Bove’s long-term outlook remains unchanged.

The US economy outperformed expectations with GDP expanding at a rate of 3.3 percent in the fourth quarter, surpassing the anticipated 2 percent growth rate.

The continued strength of the US economy, coupled with its consumers’ willingness to spend despite high interest rates and prices, contributed to the unexpected resilience.

Money

US stocks face tests from Tesla, Netflix earnings

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

Published

3 days ago

October 19, 2025

Ahron Young

US markets brace for Tesla and Netflix earnings amid rising volatility and delayed inflation data

In Short:
– Earnings reports from Tesla and Netflix might affect U.S. stock performance next week amid high inflation concerns.
– Increased market volatility arises from U.S.-China trade tensions and fewer S&P 500 stocks in an uptrend.

This coming week, earnings reports from companies including Tesla and Netflix are anticipated to impact U.S. stock performance.

Investors are also awaiting delayed U.S. inflation data, which could test market stability as it remains near record highs.Recent trading activity has shown increased volatility, influenced by ongoing U.S.-China trade tensions and concerns regarding regional bank credit risks. The CBOE volatility index has seen a rise, indicating increased market uncertainty.

The S&P 500 entered its fourth year of growth amidst these fluctuations, having previously experienced a period of calm. Experts suggest market risks are intensifying as valuations reach peak levels.

Market Volatility

Concerns regarding U.S.-China trade relations escalated last week when the U.S. threatened to raise tariffs by November 1 over China’s rare-earth export policies. President Donald Trump is scheduled to meet with President Xi Jinping in two weeks to discuss these issues.

Despite these challenges, major stock indexes gained ground over the week, with the S&P 500 up 13.3% year-to-date. However, a noticeable decline in the number of S&P 500 stocks in an uptrend raises caution among investors about underlying market weaknesses.

The upcoming third-quarter earnings will be closely monitored, especially as the government shutdown halts economic data releases. Companies like Procter & Gamble, Coca-Cola, RTX, and IBM are due to report. The delayed U.S. consumer price index is also expected to provide crucial insights ahead of the Federal Reserve’s monetary policy meeting on October 28-29.

Money

Australia’s unemployment rate rises to 4.5 per cent

Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut

Published

6 days ago

October 16, 2025

Ahron Young

Australia’s unemployment rate rises to 4.5 per cent in September, prompting calls for potential Reserve Bank interest rate cut

In Short:
– Australia’s unemployment rate rose to 4.5% in September, the highest since November 2021.
– Economists note a cooling labour market, with fewer job ads and increased participation rate amid rising living costs.

Australia’s unemployment rate increased to 4.5 per cent in September, up from 4.3 per cent in August.It marks the highest seasonally adjusted unemployment rate since November 2021.

Economists suggest that the Reserve Bank should consider another interest rate cut next month. BetaShares chief economist David Bassanese noted a slowdown in employment demand as the labour market struggles to accommodate job seekers.

The number of officially unemployed rose by 33,900 in September, while the employment count increased by 14,900. The labour force expanded by 48,800 people, resulting in a participation rate rise of 0.1 percentage points to 67 per cent, returning to July levels.

In trend terms, the unemployment rate remained steady at 4.3 per cent.

Labour Market

BDO chief economist Anders Magnusson stated that while the unemployment rate has increased, the labour market is cooling, not collapsing.

He pointed out that the 14,900 jobs added in September were slightly below the average for the past year.

A growing participation rate indicates that rising living costs are prompting more individuals to seek employment. Magnusson said the release confirms a gradual cooling of the labour market that keeps the Reserve Bank on track without necessitating immediate action.

He added that hiring activity is slowing, signalled by a 3.3 per cent drop in job advertisements in September, the largest monthly decrease since February 2024.

Despite this, he does not foresee a rate cut in November.

Money

Stocks rebound after Trump eases China trade tensions

Stocks rebound 600 points as Trump eases China trade tensions, signalling optimism in markets following Friday’s sell-off

Published

1 week ago

October 14, 2025

Ahron Young

Stocks rebound 600 points as Trump eases China trade tensions, signalling optimism in markets following Friday’s sell-off

In Short:
– Stocks rose on Monday after Trump expressed optimism about trade relations with China.
– The Dow Jones gained 621 points, with significant increases in tech stocks and broad market recovery.

Stocks gained ground on Monday, recovering from Friday’s decline after President Donald Trump expressed optimism regarding trade relations with China, stating they “will all be fine.”The Dow Jones Industrial Average rose by 621 points, approximately 70% of its previous loss. The S&P 500 experienced a 1.6% increase, nearing a 60% recovery of its earlier drop. The Nasdaq Composite increased by 2.3%, bolstered by rebounds in technology stocks.

Oracle’s stock surged over 5%, with AMD and Nvidia seeing 1% and 3% increases, respectively. Broadcom’s stock jumped 10% following the announcement of a partnership with OpenAI.

Trump’s comments hinted that he might not impose a significant increase in tariffs on China, which had previously caused market turmoil. Vice President JD Vance similarly indicated a willingness to negotiate with China, while also asserting that the U.S. holds advantages in potential trade discussions.

Broader Recovery

Monday’s trading saw a positive shift with four out of five S&P 500 stocks rising, indicating widespread recovery. Small-cap stocks also made gains, with the Russell 2000 rising over 2.5%.

Market concerns persist, however, with a government shutdown continuing and a major payroll deadline approaching on October 15. Earnings reports from major financial institutions, including Citigroup and JPMorgan Chase, are expected this week, potentially impacting market sentiment.