The Morning Call---The Fed is in a corner---Who knew

 

The Morning Call

 

8/26/21

 

The Market

         

    Technical

 

            Wednesday in the charts.

            https://www.zerohedge.com/markets/small-caps-soar-biggest-short-squeeze-7-months-bitcoin-bond-yields-spike

 

            Breadth has picked up.

            https://sentimentrader.com/blog/buyers-make-another-save-with-breadth-thrust/

 

            Buybacks are increasing.

            https://www.zerohedge.com/markets/just-stocks-dipped-below-critical-support-level-last-week-banks-unleashed-record-buyback

 

            Jeffrey Gundlach on the dollar.

            https://currently.att.yahoo.com/att/jeffrey-gundlach-view-on-the-us-dollar-decline-154813067.html?.tsrc=daily_mail&uh_test=1_11

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                        International

 

                          July UK YoY auto production fell 37.6% versus +27.1% in June.

 

September German consumer confidence came in at -1.2 versus estimates of -0.7.

 

                        Other

 

                          New home prices on the rise.

                          https://politicalcalculations.blogspot.com/2021/08/new-home-market-cap-rebounding-on.html#.YSZ9d45KiUk

 

            Highlights

 

Today’s analysis includes: (1) whatever the Fed chooses to do [taper/not taper] the consequences are negative for the economy, (2) Powell has not choice---remain accommodative or adios, (3) the debt/deficit is simply too big to avoid higher taxes, (4) just how transitory is inflation likely to be, (5) the Afghan misadventure did have some positive effects.

 

            The Fed

 

              That corner into which the Fed has painted itself is getting ever smaller.

              https://www.nytimes.com/2021/08/25/business/economy/federal-reserve-jackson-hole-meeting.html

 

              Either Powell plays ball with Biden (QEForever) or he is out.

              https://www.zerohedge.com/political/word-about-tapering-and-who-fed-bed

 

            Fiscal Policy

 

              What Biden’s new spending plan will likely mean for taxes.

              https://www.washingtonexaminer.com/opinion/3-5-trillion-democratic-party-spending-plan-means-tax-hikes

 

              The debt elephant.

              https://www.zerohedge.com/personal-finance/what-miami-stripper-and-fiscal-elephant-have-common

 

            Inflation

 

              How sticky is inflation?

              https://www.zerohedge.com/personal-finance/high-inflation-could-be-stickier-anticipated

 

            Afghanistan

 

              For those looking for a silver lining.

              https://www.persuasion.community/p/the-afghanistan-war-was-a-partial

 

    News on Stocks in Our Portfolios

 

Williams-Sonoma (NYSE:WSM): Q2 Non-GAAP EPS of $3.24 beats by $0.66; GAAP EPS of $3.21 beats by $0.63.

Revenue of $1.95B (+30.9% Y/Y) beats by $150M.

 

Williams-Sonoma (NYSE:WSM) declares $0.71/share quarterly dividend, 20.3% increase from prior dividend of $0.59.

 

What I am reading today

 

           

 

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