Wednesday, March 26, 2025

The Morning Call---Goldman dissects Trump's economic plan

 

The Morning Call

 

3/26/25

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/market-recaps/stocks-eek-out-small-gains-amid-dismal-volumes-and-bad-breadth

 

            Elliott Wave analysis of gold.

            https://talkmarkets.com/content/commodities/elliott-wave-technical-analysis-gold-tuesday-march-25?post=488267

 

            Elliott Wave analysis of bitcoin.

            https://talkmarkets.com/content/market-commentary-education/bitcoin-still-shows-a-bullish-technical-picture?post=488116

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 2.0% while purchase applications were up 1.0%.

 

Month to date retail chain store sales grew more rapidly than in the prior week.

 

The January Case Shiller home price index was up 0.1% versus forecasts of +0.2%.

 

                          February new home sales rose 1.8% versus predictions of +0.5%.

                          https://www.advisorperspectives.com/dshort/updates/2025/03/25/new-home-sales-rebound-below-forecast-february-2025

 

February durable goods orders were up 0.9% versus consensus of down 1.0%; ex transportation, they were up 0.7% versus +0.2%.               

 

  March consumer confidence came in at 92.9 versus expectations of 94.0.

                          https://www.advisorperspectives.com/dshort/updates/2025/03/25/consumer-confidence-sinks-four-year-low-march-2025

 

The March Richmond Fed manufacturing index was -4 versus estimates of +8.

                          https://www.advisorperspectives.com/dshort/updates/2025/03/25/richmond-fed-manufacturing-activity-slowed-march-2025

 

                        International

 

The January Japanese leading economic indicators were reported at 108.3 versus projections of 108.0.

 

February UK CPI was up 0.4% versus forecasts of +0.5%; core CPI was also up 0.4% versus +0.5%.

 

                        Other

 

                          Analysis of Monday’s PMI readings.

                          https://wolfstreet.com/2025/03/24/services-activity-jumps-in-march-cost-pressures-from-tariffs-staffing-well-up/

 

                          Overview of the housing market.

                          https://bonddad.blogspot.com/2025/03/the-housing-market-continues-its-slow.html

 

                          Monday in the economic charts.

  https://dailyshotbrief.com/the-daily-shot-brief-march-24th-2025/

 

                          Consumer spending slowing according to credit card company.

                          https://www.reuters.com/world/us/us-consumers-slow-spending-inflation-bites-synchrony-says-2025-03-25/

 

                          The economy is slowing but recession risks remain low.

                          https://www.capitalspectator.com/us-economy-is-slowing-but-recession-risk-remains-low/

 

                          Commercial real estate delinquency rates increased in Q4.

                          https://www.zerohedge.com/markets/commercial-real-estate-delinquency-rates-increase-4th-quarter

 

            Overnight News

 

GOP leaders said they’re getting close to agreeing on a plan to pass an extension   of Trump’s 2017 tax cuts and an increase to the debt ceiling. The CBO will today release its estimate for when the debt ceiling will be reached.

 

Fed's Goolsbee (2025 voter) said it may take longer than anticipated for the next cut to come because of economic uncertainty and ‘wait and see’ is the correct approach when facing uncertainty. Goolsbee also commented that market angst over inflation would be a red flag and believes borrowing costs will be a fair bit lower in 12–18 months, while he noted that if investor expectations begin to converge with those of American households, the Fed would need to act:

 

            Fiscal Policy

 

              The inconsistencies in Trump’s tariff/weak dollar scheme.

              https://alhambrapartners.com/weekly-market-pulse-a-risky-plan/?src=news

 

Here is a progressive response to DOGE. It would take me several pages to address the arguments presented; but I leave it to you to make your own judgment.

https://www.nakedcapitalism.com/2025/03/satyajit-das-doge-the-accelerant-in-american-decline.html

 

              More needed on infrastructure improvement.

              https://www.nytimes.com/2025/03/25/business/economy/us-infrastructure-federal-cuts.html

 

                  Goldman dissects Trump’s economic plan.

              https://www.zerohedge.com/geopolitical/trump-economic-plan-goldmans-ways-play-it

 

            Tariffs

 

              Quote of the day.

              https://cafehayek.com/2025/03/quotation-of-the-day-4959.html

 

              Trade war explodes across the globe.

              https://www.wsj.com/economy/trade/trade-war-explodes-across-world-at-pace-not-seen-in-decades-0b6d6513?mod=economy_lead_pos3

 

              Goldman predicts what to expect on April 2nd.

              https://www.zerohedge.com/economics/negative-surprise-goldman-warns-market-expectations-far-trumps-april-2-reciprocal-tariffs

 

    Investing

 

            Leave being bullish or bearish to the media.

            https://www.advisorperspectives.com/commentaries/2025/03/25/despite-bearish-sentiment-retail-investor-buys-dip

 

            In praise of dividend growth stocks.

            https://politicalcalculations.blogspot.com/2025/03/investing-risks-and-returns-by-dividend.html

 

            There are now real alternatives to the US stock market.

            https://www.zerohedge.com/markets/are-there-now-real-alternatives-us-market

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

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