Friday, June 4, 2021

The Morning Call--Shrinkflation

 

The Morning Call

 

6/4/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/dollar-spikes-most-9-months-meme-mania-dominates-markets

 

            The most bearish chart of the day.

            https://www.zerohedge.com/the-market-ear/cdo-8mtpn

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The May final services PMI was reported at 70.4 versus consensus of 70.1; the final composite PMI was 68.7 versus 68.1.

https://www.advisorperspectives.com/dshort/updates/2021/06/03/march-markit-services-pmi-business-activity-growth-rate-accelerates-to-record-high-in-may

 

The May ISM nonmanufacturing index came in at 64 versus predictions of 63.

                          https://www.advisorperspectives.com/dshort/updates/2021/06/03/ism-services-may-all-time-high

 

May light vehicle sales were 16.9 million units versus estimates of 18.0 million.

 

May nonfarm payrolls were up 559,000 versus forecasts of 650,000; average hourly earnings were up 0.5% versus +0.2%.

                                  https://www.zerohedge.com/markets/may-payrolls-miss-559k-jobs-added-below-expectations-unemployment-rate-drops

 

                        International

 

April Japanese household spending rose 1.1% versus expectations of -2.2%.

 

April EU retail sales fell 3.1% versus projections of -1.2%.

 

The May EU construction PMI was 50.3 versus 50.1 recorded in April; the UK May construction PMI was 64.2 versus 62.3.

 

                        Other

 

            The Fed

 

              The Fed says that it will begin winding down its corporate bond purchases.

              https://www.cnn.com/2021/06/02/business/federal-reserve-corporate-assets-program-pandemic/index.html

 

            Biden’s Plan

 

$2 trillion in taxes, $6 trillion in spending, $22 trillion in borrowing.  What could go wrong?

              https://thehill.com/opinion/white-house/556250-2-trillion-in-taxes-6-trillion-in-spending-22-trillion-in-borrowing-what

 

              Biden signals willingness to alter tax plan.

              https://www.zerohedge.com/political/biden-signals-major-changes-tax-proposal-win-gop-support-sending-markets-higher

 

            Inflation

 

              Shrinkflation.

              https://fee.org/articles/shrinkflation-the-latest-consequence-of-reckless-federal-spending-explained/

                     

              Container ship charter rates ‘out of control’.

              https://www.zerohedge.com/markets/container-ship-scores-charts-fantasy-charter-rate-135000day

 

     Bottom line.

 

            More on valuations.

            https://www.advisorperspectives.com/dshort/updates/2021/06/03/the-q-ratio-and-market-valuation-may-update

 

            Illusions of safety.

            https://humbledollar.com/2021/05/illusions-of-safety/

 

            May dividend by the numbers.

            https://politicalcalculations.blogspot.com/2021/06/dividends-by-numbers-for-may-2021.html#.YLkQ-vlKiUk

 

Your father’s stock market is not coming back.  I include this because it is thought provoking not because I believe it.

https://fortune.com/2021/06/02/changing-stock-market-meme-stocks-day-trading-reddit-crypto-investing-robinhood-btc-tsla-gme-eth-amc-nfts/?7j3g0c

               

This is not your grandfather’s mania (note.  This author as well as the one immediately above both work for the same company.)

https://theirrelevantinvestor.com/2021/06/03/this-isnt-your-grandfathers-mania/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            The real ‘Lord of the Flies’---very interesting read.

            https://www.theguardian.com/books/2020/may/09/the-real-lord-of-the-flies-what-happened-when-six-boys-were-shipwrecked-for-15-months

 

            The geek in pictures.

            https://www.powerlineblog.com/archives/2021/06/the-geek-in-pictures-keynesian-crime-wave-edition.php

 

            Invisible sculpture sells for $18,000.  The emperor’s new clothes?

            https://www.zerohedge.com/personal-finance/italian-artist-sells-invisible-sculpture-18000

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

No comments:

Post a Comment