Friday, May 7, 2021

The Morning Call--Ooooops

 

The Morning Call

 

5/7/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/dollar-dumps-dow-jumps-crypto-slumps

 

            Taper tantrum.  It’s coming.

            https://thereformedbroker.com/2021/05/06/taper-tantrum-2-0-any-day-now/

 

            Prime brokers slashing hedge funds leverage.

            https://www.zerohedge.com/markets/here-comes-hwangover-prime-brokers-begin-slashing-hedge-funds-leverage-after-archegos

 

            The ‘fear of missing out’ trade.

            https://www.zerohedge.com/the-market-ear/cb5yc9-p4b

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

April nonfarm payrolls grew by 266,000 versus estimates of 978,000….Oooops; the April unemployment rate was 6.1% versus 5.8%.

                          https://www.zerohedge.com/markets/aprill-payrolls-huge-miss-just-266k-jobs-added-expectations-1-million

 

                        International

 

The March German trade balance was +E14.3 billion versus predictions of +E19.5 billion; March industrial production was up 2.5% versus +2.3%.

 

The April Japanese services PMI came in at 49.5 versus forecasts of 48.3 in March; the composite PMI was 51.0 versus 49.9 in March.

 

The April Chinese Caixin services PMI was reported at 56.3 versus 54.3 in March; the composite PMI was 54.7 versus 53.1 in March; the April trade balance was $42.8 billion versus expectations of $28.1 billion.

                          https://www.zerohedge.com/economics/china-trade-soars-april-global-economies-reopen

 

                        Other

 

                          Median new home prices versus median household income.

                          https://politicalcalculations.blogspot.com/2021/05/median-new-home-prices-rising-faster.html#.YJQqRrVKiUk

 

                          US economic growth rate forecasts accelerate in Q2.

                          http://www.capitalspectator.com/us-economic-growth-expected-to-accelerate-in-q2/

 

                          Bank of England forecasts fastest GDP growth in 70 years.

                          https://www.ft.com/content/ed3eae02-9c94-4083-8a5f-19fed51e7d54

 

            Biden’s Plan

 

              Patents are not the problem.

              https://marginalrevolution.com/marginalrevolution/2021/05/ip-is-not-the-constraint.html

 

Here is a counterpoint; though notably absent from the presentation is the issue of the incentive (profit) to discover the vaccine in the first place and/or the incentive to do the same when the next pandemic occurs.

                  https://www.nakedcapitalism.com/2021/05/cry-no-tears-for-these-death-profiteers-pharma-stocks-plunge-as-biden-backs-vaccine-patent-waiver.html

 

                  The governments Ponzi gamble.

              https://www.marketwatch.com/story/is-the-government-running-a-ponzi-gamble-with-debt-one-famous-economist-warns-it-may-end-badly-11620159850

 

              Jeff Gundlach on Biden’s plan.

              https://www.zerohedge.com/economics/gundlach-warns-americas-unfunded-liabilities-are-163-trillion-more-5x-national-debt

 

              Jamie Dimon on Biden’s plan.

              https://www.zerohedge.com/markets/just-throwing-money-it-doesnt-work-dimon-slams-planned-dem-tax-hikes-little-bit-crazy

 

            Inflation

 

              Inflation or not?

              http://pointsandfigures.com/2021/05/05/inflation-or-is-it-inflation/

 

            The coronavirus

 

              Deaths and lockdown.

              https://americanconsequences.com/death-and-lockdowns-john-tierney/

 

    Bottom line.

 

            Update on valuations.

            https://www.advisorperspectives.com/dshort/updates/2021/05/06/is-the-market-still-overvalued

 

            The limits of investing sanity.

            https://www.collaborativefund.com/blog/the-limits-of-investing-sanity/

 

    News on Stocks in Our Portfolios

 

Nike (NYSE:NKE) declares $0.275/share quarterly dividend, in line with previous.

 

C.H. Robinson Worldwide (NASDAQ:CHRW) declares $0.51/share quarterly dividend, in line with previous.

 

What I am reading today

 

            Why British common law aids innovation.

            https://www.adamsmith.org/blog/we-agree-with-the-sentiment-but-not-the-specifics

 

 

                        The fifty best sitcoms of all time.

            https://www.rollingstone.com/tv/tv-lists/best-tv-sitcoms-1162237/barney-miller-abc-1975-1982-1162396/

 

 

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