Thursday, May 6, 2021

The Morning Call--Waiving intellectual property rights. That is a winner.

 

The Morning Call

 

5/6/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

                https://www.zerohedge.com/markets/commodity-chaos-continues-stocks-refuse-bounce-after-janets-jolt

 

            Stocks, bonds and higher inflation.

            https://compoundadvisors.com/2021/stocks-bonds-and-higher-inflation

 

            Retail buying starting to fade?

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

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly jobless claims were 498,000 versus projections of 540,000.

                          https://www.zerohedge.com/personal-finance/initial-jobless-claims-fall-pandemic-lows-over-16-million-americans-remain-dole

 

Q1 preliminary nonfarm productivity increased 5.4% versus forecasts of +4.3%; unit labor costs declined 0.3% versus -0.8%.

 

The April ISM nonmanufacturing index came in at 62.7 versus estimates of 64.3.

https://www.advisorperspectives.com/dshort/updates/2021/05/05/ism-services-17-industries-reported-growth-in-april

 

The April services PMI was reported at 64.7 versus expectations of 63.1; the April composite PMI was 63.5 versus 62.2.

https://www.advisorperspectives.com/dshort/updates/2021/05/05/march-markit-services-pmi-business-activity-expands-at-fastest-pace-on-record-amid-marked-uptick-in-client-demand

 

                        International

 

March German factory orders were up 3.0% versus predictions of +1.7%; the April construction PMI as 46.2 versus 47.5 in March.

 

March EU retail sales rose 2.7% versus consensus of +1.5%.

 

The April UK services PMI came in at 61.0 versus forecasts of 60.1; the composite PMI was 60.7 versus 60.0.

 

                        Other

 

            The Fed

 

              Handle with care.

              https://www.zerohedge.com/markets/fragile-handle-care

 

              Powell flunks his Q&A session.

              https://www.zerohedge.com/economics/fed-finally-gets-some-tough-questions-and-fails-answer-them

 

            Biden’s Plan

 

              More on the rich paying their ‘fair share’.

              http://blog.yardeni.com/2021/05/the-one-percent-off-with-their-heads.html

 

              Higher corporate tax rates will likely slow stock buybacks.

              https://www.advisorperspectives.com/commentaries/2021/05/05/what-could-us-corporate-tax-hikes-mean-for-share-buybacks

 

Talk about f**king up the economy: government decides when it can waive intellectual property rights (for coronavirus vaccine).  One question, Joe: who is going the make the next vaccine when/if another pandemic hits?  Clowns to the left of me, jokers to the right.

              https://www.zerohedge.com/markets/stocks-tumble-white-house-backs-wto-plan-waive-ip-protections-covid-vaccines

 

            Inflation

 

              Inflation still has not found its way into the labor market.

              https://www.ft.com/content/557365b9-4484-4df5-8528-20f61027fc53

 

            The coronavirus

 

              Some lessons.

              https://www.vox.com/22409749/us-covid-19-coronavirus-pandemic-response-lessons-learned

 

     Bottom line.

 

            Is there an inflation shock coming?

            https://www.zerohedge.com/markets/kolanovic-most-are-unprepared-coming-inflation-shock

 

            Cash flooding into the Market may not be all that great for stocks.

            https://www.marketwatch.com/story/why-you-should-worry-about-the-flood-of-new-cash-into-u-s-stock-funds-11620102925?mod=home-page

 

            The math does not support ‘buy and hold’.

            https://www.morningstar.com/articles/1037077/you-neednt-hold-your-stock-winners

 

            April dividends by the numbers.

            https://politicalcalculations.blogspot.com/2021/05/dividends-by-numbers-for-april-2021.html#.YJLcybVKiUk

 

            Update on Buffett indicator.

            https://www.advisorperspectives.com/dshort/updates/2021/05/05/market-cap-to-gdp-an-updated-look-at-the-buffett-valuation-indicator

 

                        More on valuations.

            https://www.ft.com/content/773261d2-c68e-41de-93c8-2d76c1528559

 

            This is a decent article on having a selling discipline.  However, thinking about the multitude of reasons for selling can make your hair hurt.  Plus, it only confuses the issue.  You should have two sell prices on every stock in your portfolio.  One is a Stop Loss, which can be moved up as the stock advances.  The other is a Take Profits Price.  I have my discipline.  Mine is to Sell Half of my position when a stock reaches a valuation level my work determines as excessive.  You can have yours.  But have one; and the fewer criteria you have to consider, the easier it is to execute.

            https://awealthofcommonsense.com/2021/05/when-does-it-make-sense-to-take-profits-from-your-biggest-winners/

 

 

    News on Stocks in Our Portfolios

 

Becton, Dickinson (NYSE:BDX): Q1 Non-GAAP EPS of $3.19 beats by $0.15; GAAP EPS of $0.94 misses by $1.25.

Revenue of $4.91B (+16.1% Y/Y) beats by $30M.

 

What I am reading today

 

           

 

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