So Grimm Jim will drop is 3rd Federal Budget tonight and While the typical pre-budget releases are everywhere I find it laughable that Grimm Jim thinks Inflation will be under 3% come Xmas. Tell him he's dreaming. This is a Labor Budget. It WILL BE expansionary meaning it will be inflationary.
Just give it time.
And Grimm Jim has already said that Australia’s gross debt is still predicted to rise above $1 trillion. That's $38,500 debt per every man, woman and child.
Anyway, if you have nothing better to do tonight, get ready for the biggest bait and switch event you'll hear this year (or until the next bait & switch Albo comes up with).
To the overnight mkts.
The "Roaring Kitty" is back! So WTF is the Roaring Kitty do you ask? Roaring Kitty, also known as Keith Gill, led an army of 'meme-traders' against hedge funds shorting GameStop (GME) (Melvin Capital) in 2021. He returned to X last night, posting a meme that suggested he's back after going silent on X since June 2021.
And did GME explode higher! now up 110% on the day, back to its highest since August 2022...
Source: Bloomberg
Smart play actually. Roaring Kitty's return comes as the short percentage of GameStop shares outstanding has surged, doubling from 25 million in late 2021 to 60 million as of days ago, equal to about 24% of the float short.
Are the meme stocks back?
It's unlikely, given that rates are in higher for longer mode. However, a cutting cycle will open up some sort of revival so I guess we'll read more about Roaring Kitty (& others) in the meme stock world.
Back to the main mkts.
The jump in inflation expectations (and household debt stress) from The New York Fed's survey did provide some selling pressure on the day however - as well as Chevron's decline (driven by reports that influential proxy giant ISS recommended Hess investors abstain from voting on the proposed $53 billion acquisition).
By the close, the S&P was unchanged, The Dow was the laggard (down around 0.2%), while the Nasdaq held on to some gains (both well off the day's highs)...
Source: Bloomberg
So not much of a lead for the ASX today so it's another day of the same - nothing much doing.
Happy Tuesday!
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