Hi Everybody,

It’s been almost 10 years since the stock markets peaked before the financial crisis. Back then financial firms were buying up assets called CDOs, bad mortgage loans that had been bundled up and repackaged to look like low risk assets.

As we know, the global banking and government response to this overborrowing fad was of course to print more money and make it easier to borrow more.

In the Financial Times today, economics professor Frank Partnoy writes about the ugly sequel that is playing out right now.

Except, instead of risky mortgages, it’s risky corporate loans that are being repackaged. The assets are conveniently called CLOs. An oddly suspicious name if you ask me.

It’s probably nothing to worry about though. After all, what are the odds that an overwhelming number of corporate loans could go bust all at once?

@MatiGreenspan
eToro, Senior Market Analyst

Today’s Highlights

  • Mooch takes a Boot
  • Stocks High Dollar Low
  • Cryptos Move without Bitcoin

Please note: All data, figures & graphs are valid as of August 1st. All trading carries risk. Only risk capital you can afford to lose.

Market Overview

You can’t make this stuff up.

After only 10 days in the White House, Trump’s new communications director Anthony Scaramucci heard the famous two words “you’re fired!”

Mooch is a good sport though, apparently, he wanted to give Trump’s new Chief of Staff John Kelly “a clean slate.”

Somehow, former reality star Donald Trump has managed to make politics more drama filled than a good episode of Jerry Springer. We kindly thank him for making young Americans excited about politics again. It’s about time.

Wall Street remains impervious to White House drama and the Dow Jones closed out yesterday with another brand new all time record high.

Either because of the above or due to a weak handed Federal Reserve the US Dollar has continued its descent. The Dollar Index has fallen below the critical support of 93 points. Light support exists at 92 but there isn’t much below that.

Commodities like Gold and Oil are up due to the weaker Dollar.

Just for the fun of it, here’s a chart of the US Dollar compared to the popular cryptocurrency Ethereum since February.

The market cap of all cryptocurrencies has risen today to $94.5 Billion despite the current crisis in the Bitcoin network.

Let’s have an amazing day ahead!

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