Tuesday, February 23, 2021

The Morning Call--Beware the speculative frenzy

 

The Morning Call

 

2/23/21

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/big-tech-bitcoin-buck-battered-commodities-soar

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Month to date retail chain store sales fell slightly less than in the prior week.

 

The December Case Shiller home price index was up 0.8% versus +1.1% reported in November.

 

The February Dallas Fed manufacturing index came in at 17.2 versus 7.0 reported in December.

                          https://www.advisorperspectives.com/dshort/updates/2021/02/22/february-dallas-fed-manufacturing

 

                        International

                           

                            December UK unemployment was 5.1%, in line.

 

                            January EU CPI was +0.2%, in line.

 

                        Other

 

                          Update on seven high frequency indicators.

                          https://www.calculatedriskblog.com/2021/02/seven-high-frequency-indicators-for_22.html

 

                          For the optimists.

                          https://www.nytimes.com/2021/02/21/business/economy/pandemic-economic-boom.html

 

Yellen sets stage for higher corporate taxes, yield curve control and  a digital dollar.

https://www.zerohedge.com/markets/yellen-sets-stage-higher-corporate-taxes-yield-curve-control-and-digital-dollar

 

 

            Inflation

 

              Investor inflation fears are rising.

              https://www.marketwatch.com/story/inflation-is-rising-and-so-are-investors-fears-about-stocks-11613703814?mod=home-page

 

                           Inflation here, there and everywhere.

              https://www.knowledgeleaderscapital.com/2021/02/19/inflation-here-there-and-everywhere/

 

                          What is inflation exactly?

              https://www.forbes.com/sites/johntamny/2021/02/21/the-true-challenge-with-inflation-is-that-so-few-know-what-it-is/?sh=722a17ea18df

 

            Bottom line.  Pay attention to the first two articles below.  They address the growing level of speculation in the Market.  Most bull markets end when investor greed becomes a dominant driver of securities prices.  Both authors are suggesting that the equities markets have reached that stage.  That doesn’t mean the feeding frenzy can’t go on; and as long as the Fed keeps pumping and government spending keeps jumping, it seems likely that it will.  But their warnings are there.  Be mindful of the exogenous event.

 

              Beware the mania.

              https://thereformedbroker.com/2021/02/22/substack-vertigo/

 

              The frenzy of speculative excess.

              https://www.zerohedge.com/markets/frenzy-speculative-excess

 

              A ‘V’ shaped recovery in earnings.

              http://blog.yardeni.com/2021/02/s-500-earnings-v-shaped-recovery.html

 

              Rising rates do not necessarily spell doom for the stock market.

              https://awealthofcommonsense.com/2021/02/how-does-the-stock-market-perform-when-interest-rates-rise/

 

    News on Stocks in Our Portfolios

 

Medtronic (NYSE:MDT): Q3 Non-GAAP EPS of $1.29 beats by $0.14; GAAP EPS of $0.94 beats by $0.22.

Revenue of $7.8B (+1.0% Y/Y) beats by $30M.

 

Bank of Nova Scotia (NYSE:BNS): Q1 Non-GAAP EPS of C$1.88 beats by C$0.32; GAAP EPS of C$1.86 beats by C$0.30.

Revenue of C$8.07B (-0.9% Y/Y) beats by C$490M.

 

Bank of Nova Scotia (NYSE:BNS) declares CAD 0.90/share quarterly dividend, in line with previous.

 

Home Depot (NYSE:HD): Q4 GAAP EPS of $2.65 beats by $0.03.

Revenue of $32.26B (+25.1% Y/Y) beats by $1.69B.

 

Home Depot (NYSE:HD) declares $1.65/share quarterly dividend, 10% increase from prior dividend of $1.50.

 

What I am reading today

 

            Life is too precious to be lived mechanically.

            http://traderfeed.blogspot.com/2021/02/how-we-tranceform-mindscape.html

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

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