Thursday, April 1, 2021

The Morning Call--Biden's new plan, Phase 1

 

The Morning Call

 

4/1/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/bitcoin-black-gold-soared-q1-treasuries-suffer-biggest-loss-over-40-years

 

            The fear gap.

            https://www.zerohedge.com/the-market-ear/c1bnlpsiod

 

            Will the Treasury rout continue?

            https://www.morningstar.com/articles/1031522/will-the-treasury-rout-continue

 

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly jobless claims were 719,000 versus forecasts of 680,000.

 

                          February pending home sales fell 10.6% versus projections of -2.6%.

 

                          The March Chicago PMI came in at 66.3 versus estimates of 60.7.

 

                        International

 

February German retail sales rose 1.2% versus expectations of +2.0%; the March manufacturing PMI was reported at 66.6, in line.

 

The March Japanese manufacturing PMI was 52.7 versus consensus of 52.0.

                         

                        Other

 

              There is no such thing as unwanted money.

              https://www.realclearmarkets.com/articles/2021/03/31/despite_what_they_tell_you_money_doesnt_just_curl_up_and_fall_asleep_770575.html

 

 

            Fiscal Policy

 

Of course, yesterday’s main headline was the new Biden infrastructure spending plan.  Here is Goldman’s analysis. As you can see, there is still much we do not know.  But so far, what we do know seems (operative word) to satisfy my criteria of (1) productivity enhancing spending, (2) paid for by taxes on those who have benefitted mightily from monetary/fiscal policies over the last two decades.  More to analysis to come.

https://www.zerohedge.com/markets/largely-expected-goldman-recaps-bidens-infrastructure-plan

 

This from Bloomberg.

https://www.bloomberg.com/news/articles/2021-03-30/biden-to-lay-out-u-s-economic-renewal-in-rejuvenated-pittsburgh?srnd=premium&sref=loFkkPMQ

 

              A not so hopeful look at new fiscal spending.

              https://www.aier.org/article/political-economy-vs-federal-fairy-tales/

 

              The EU continues to press the debt envelope.

              https://www.zerohedge.com/political/closer-look-eus-new-murky-joint-borrowing-schemes

 

            Bottom line.  Barry Ritholtz on the current market.

                        https://ritholtz.com/2021/03/bull-market-bull/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

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