The Morning Call---Thanks to the Fed, price discovery has disappeared

 

The Morning Call

 

1/22/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-line-sand-defended-again-bonds-bullion-bitcoin-battered

 

Bull/bear indicator.

https://www.zerohedge.com/the-market-ear/cjtr9gvqnx

 

            Is the pin action in bitcoin a harbinger of things to come?

            https://www.zerohedge.com/markets/harbinger

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                        International

 

December Japanese YoY core CPI was -1.0% versus estimates of -1.1%; the January flash manufacturing PMI was 49.7 versus 50.0; the services PMI was 45.9 versus 47.2; the composite PMI was 46.7 versus 48.5.

 

December UK retail sales rose 0.3% versus predictions of +1.2%, ex energy, they were up 6.4% versus 7.0%; the January flash manufacturing PMI was 52.9 versus 54.0; the services PMI was 38.8 versus 45.0; the composite PMI was 40.6 versus 45.5.

 

January EU flash consumer confidence was -15.5 versus consensus of -  15.0; the flash manufacturing PMI was 54.7 versus 54.5; the services PMI was 45.0 versus 44.5; the composite PMI was 47.5 versus 47.6.

 

The January German flash manufacturing PMI was 57.0 versus expectations of 57.5; the services PMI was 46.8 versus 45.3; the composite PMI was 50.8 versus 50.3.

 

 

                        Other

 

                          Hotel occupancy declined 31.8% YoY.

                          https://www.calculatedriskblog.com/2021/01/hotels-occupancy-rate-declined-318-year.html

 

            Fiscal Policy

 

              Remembering Calvin Coolidge (must read)

                          https://fee.org/articles/calvin-coolidge-s-inaugural-address-warned-of-the-dangers-of-legalized-larceny/?utm_source=email&utm_medium=email&utm_campaign=2020_FEEDaily

 

              Economic kickoff rewards.

              https://www.washingtonexaminer.com/opinion/bidens-economic-kickoff-rewards-important-groups-but-goes-too-far

 

              Yellen fleshes out more Biden administration policies.

              https://www.zerohedge.com/economics/yellen-says-us-will-fight-currency-manipulation-will-use-full-array-tools-counter-chinas

 

            Bottom line.  Thanks to the Fed, price discovery has disappeared.

                        https://www.zerohedge.com/markets/price-discovery-has-simply-vanished-bauposts-klarman-blasts-800lb-gorilla-fed-dangerously

 

              The boom in fraud.

              https://www.zerohedge.com/markets/what-boom-fraud-says-about-current-market-environment

 

                  The trouble with bubbles.

              https://www.zerohedge.com/markets/trouble-bubbles

 

    News on Stocks in Our Portfolios

 

BlackRock (NYSE:BLK) declares $4.13/share quarterly dividend, 13.8% increase from prior dividend of $3.63.

 

McDonald's (NYSE:MCD) declares $1.29/share quarterly dividend, in line with previous.

 

What I am reading today

 

            Thoughts on global warming and reducing CO2 emissions.

            https://coyoteblog.com/coyote_blog/2021/01/repost-for-the-new-administration-trans-partisan-plan-1-addressing-man-made-global-warming-with-a-plan-that-could-be-supported-by-both-democrats-and-republicans.html

                       

 

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