The Morning Call---Yields are rising in relative terms

 

The Morning Call

 

3/10/21

 

We are in the process of moving.  So, communication will be somewhat sporadic over the next month---starting tomorrow.

 

The Market

         

    Technical

 

Tuesday in the charts.

https://www.zerohedge.com/markets/cathie-woods-arkk-has-best-day-ever-ppt-engineered-squeeze-lifts-all-boats

 

This bull market is on shaky grounds.

https://www.zerohedge.com/markets/bull-market-shaky-ground

 

US interest rates are rising in relative terms.

http://www.capitalspectator.com/us-interest-rates-are-rising-in-relative-terms-too/

 

Yields refuse to drop.

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 1.3% but purchase applications rose 7.2%.

 

                          Month to date retail chain store sales plummeted versus the prior week.

 

February CPI came in at +0.4%, in line; core CPI was +0.1% versus    +0.2%.

                                      

                        International

 

                          February Chinese CPI was -0.2% versus estimates of -0.4%.

 

                        Other

 

              Macro forces driving the covid economy.

              https://global-macro-monitor.com/2021/03/08/the-macro-factors-driving-the-covid-economy-in-two-charts/

 

              US growth surge could unbalance fragile global economy.

              https://www.wsj.com/articles/u-s-growth-surge-could-unbalance-fragile-world-economy-11615284077?mod=hp_lead_pos5

 

              Where is the ‘V’ shaped recovery in employment?

              https://www.zerohedge.com/political/v-shaped-recovery-never-happened

 

The Fed

 

  The Fed is not printing as much money as you think.

  https://www.collaborativefund.com/blog/the-fed-isnt-printing-as-much-money-as-you-think/

 

  Ready for another Fed induced crisis?

  https://alephblog.com/2021/03/05/time-for-another-convexity-crisis/

 

  Latest comments form the Bank of Japan.

  https://www.zerohedge.com/markets/stocks-usdjpy-dip-boj-yield-curve-control-comments

 

Fiscal Policy

 

  Waste in the stimulus bill.  If this doesn’t piss you off, nothing will.

  https://www.realclearpolicy.com/articles/2021/03/08/federal_employees_get_1400_per_week__if_kids_not_full-time_in_school_766557.html

 

 

  The crowding out of government debt (just read the abstract).

  https://scholar.harvard.edu/files/mankiw/files/market_power_in_neoclassical_growth_models.pdf

 

Inflation

 

  Soaring home prices are starting to worry officials.

  https://www.politico.com/news/2021/03/08/soaring-home-prices-alarm-policymakers-474433

 

 

Bottom line

 

  The latest from Jeff Gundlach.

  https://www.zerohedge.com/markets/looking-backward-jeff-gundlach-live-webcast

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

           

 

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