What to expect from this November?

Hey there! Buckle up because November 2023 is shaping up to be quite the rollercoaster. Let's dive into what's happening.

First up, Italy. The country's been trying to keep its Government Bond in the "investment grade" club. Falling short could spell trouble for Italy's economy and financial system. Right now, the spread between Italian and German bonds is over 2%, which means people are seeing some real risks. It's a mixed bag for Italy. On the bright side, it's showing resilience even with Germany's economy slowing down, and employment rates are looking good. But there's a flip side. More Italians (10% up YoY) are facing poverty due to rising prices on everyday items like food. And the housing market, which is a big deal for many Italians, is showing signs of slowing down (-30% mortgages and trades). Higher interest rates will, sooner or later, bring down house prices...

Now, let's talk about companies. If you're into corporate news, check out this YouTube video by Damodaran. It's a must-watch. The third quarter confirmed what Damodaran explained, but now variance is even higher, with just a few of big winners and many loosers. Even in the tech gotha: Microsoft's doing great, but Google? Not so much.

Over in the U.S., things are looking better than in Italy, but it's not all smooth sailing. Interest rates on Government Bonds hit 5%, the highest since 2007. Plus, the U.S. has some tough choices to make about its military actions in places like Taiwan, Ukraine, and Israel. Juggling multiple hotspots could be risky, and it might give those who aren't fans of the U.S. a chance to stir the pot.

As we head into the next few months, we're in for both challenges and opportunities. Remember what Buffet said: "It's only when the tide goes out that you discover who's been swimming naked." So, let's make sure we're ready for whatever comes our way. Here's to navigating the financial waves together. Stay safe and informed :)