What we’re reading (2/22)
“The Economic Stakes Of The Ukraine Crisis” (DealBook). “The global economic implications of the conflict remain hard to figure, with Western sanctions on Russia potentially ramping up in response to how far and how aggressively its troops push into Ukraine. Stock markets fell sharply and the price of commodities like oil soared in early trading today, but these moves moderated in the [later] hours, as investors tried to assess what it all means.”
“Heavily Hedged Traders Have Been Awaiting A Stock-Market Storm” (Bloomberg). “Whatever happens in Ukraine or how it affects Federal Reserve policy, the outcome will land in markets where investors have had time to prepare for the worst. It may be one reason the worst has so far been avoided. They’ve been steadily boosting bets against equities, shaking off a reluctance to short tracing to last year’s meme stock upheaval. Bearish bets on the largest exchange-traded fund tracking the S&P 500 have surged, while put open interest on bond-focused products has risen to historic levels. Meanwhile, professional managers have been hedging their credit exposures.”
“Why This Economic Boom Can’t Lift America’s Spirits” (Wall Street Journal). “[C]onsumers say they feel as bad as they did in the financial-crisis year of 2009, a recent Gallup poll showed. For the first time, Americans who say they are ‘not too happy’ outnumber those who say they’re ‘very happy,’ according to a survey from the nonprofit group NORC at the University of Chicago.”
“Bitcoin Losing Out To Gold Has Analysts Eyeing $30,000 Level” (Bloomberg). “Bitcoin traded near a more than two-week low as fears of a possible Russian invasion of Ukraine prompted some analysts to predict the largest cryptocurrency could slide toward the key $30,000 level.”
“The Chip Shortage Is So Bad GM Dropped Heated Seats In Winter” (CNBC). “General Motors had to temporarily drop heated seats as an option on vehicles in response to the chip shortage. But the largest U.S. automaker is not alone. The move is another sign of how automakers are having to respond to a crisis that has been cratering dealer inventory, spiking prices and delaying orders.”
