Friday, March 26, 2021

The Morning Call---Stocks don't 'only go up'

 

The Morning Call

 

3/26/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-dumpnpump-dollar-gains-amid-bitcoin-bond-pain

 

            When in doubt, stay out.

            https://www.zerohedge.com/the-market-ear/cekk2vfiya

 

            Watch your tail.

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

February personal income fell 7.1% versus predictions of -7.3%; personal spending was -1.0% versus -0.7%; the core PCE price index was +0.1%, in line; the trade balance was -$86.7 billion versus -$84.5 billion in January; wholesale inventories rose 0.5% versus up 1.4% in January.

 

The March Kansas City Fed manufacturing index came in at 23 versus estimates of 24.

 

                        International

 

February UK retail sales were up 2.1%, in line; YoY auto production fell 14.0% versus down 27.3% in January.

 

March Japanese YoY CPI was -0.2% versus -0.3% in February.

 

The March German business climate index was reported at 96.6 versus forecasts of 93.2.

 

                        Other

                       

                          Hotel occupancy at highest in a year.

                          https://www.calculatedriskblog.com/2021/03/hotels-occupancy-rate-highest-in-year_25.html

 

                          Architecture billings climb into positive territory.

                          https://www.calculatedriskblog.com/2021/03/aia-architecture-billings-climb-into.html

 

            The Fed

 

Fed says that it will lift restrictions on bank dividend payouts and buybacks in June.  The good news is that between measures taken by congress and the Fed, we do not have to worry about presently is overleveraged US bank balance sheets in the case of an economic disruption.  The bad news is that the same can’t be said for many foreign banks especially those in Europe.  The hidden danger is the extent to which US banks are counterparties to EU bank’s prop trading desks.

https://www.zerohedge.com/markets/fed-lift-bank-buyback-dividend-limits-end-june

 

            The coronavirus

 

              Lockdowns stole dignity from people and businesses.

              https://www.realclearmarkets.com/articles/2021/03/25/the_hideous_lockdowns_stole_dignity_from_people_and_businesses_769676.html

 

                        Bottom line.

 

              Stocks don’t ‘only go up’.

              https://www.pragcap.com/stocks-dont-only-go-up/

 

              Five investing powers.

              https://www.collaborativefund.com/blog/five-investing-powers/

 

              The rising risk in bonds.

              https://humbledollar.com/2021/03/rising-risk/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            Hints of a new force in nature.

            https://www.theguardian.com/science/2021/mar/23/large-hadron-collider-scientists-particle-physics

 

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