Tuesday, August 31, 2021

The Morning Call--More on the Fed and climate change

 

The Morning Call

 

8/31/21

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/crypto-tech-stocks-soar-soft-data-slumps-18-month-lows

 

            More signs of potential upside pain.

            https://www.zerohedge.com/the-market-ear/cxso3pfcpi

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Month to date retail chain store sales grew faster than in the prior week.

 

The June Case Shiller YoY home price index rose 19.1% versus estimates of 18.5%.

 

The August Dallas Fed manufacturing index was reported at 9 versus 27.3 in July.

                          https://www.advisorperspectives.com/dshort/updates/2021/08/30/august-dallas-fed-manufacturing

 

                        International

 

July Japanese unemployment was 2.8% versus predictions of 2.9%; July preliminary industrial production was -1.5% versus -2.5%; July YoY housing starts were up 9.9% versus +4.8%; YoY construction orders was -3.4% versus +32.3% recorded in June; August consumer confidence was 36.1 versus 37.9 in July.

 

August Chinese preliminary manufacturing PMI was 50.1 versus estimates of 50.2; the August preliminary nonmanufacturing PMI was 47.5 versus 53.3 in July.

 

August German unemployment rate was 5.5% versus expectations  of 5.6%.

 

The August EU flash CPI was +0.4% versus -0.1% in  July.

 

                        Other

 

            The Fed

 

Last wee on ek, I linked to (and derided) an article advocating for the Fed to add climate change to the factors that needed to be considered in formulating monetary policy.  Here is another one on the Fed and climate change.  The good news is that its main thesis is that the Fed can best positively impact climate change by creating a stable economic environment---like avoiding blowing another dot com or real estate bubble.  Alas, too late.

https://www.nytimes.com/2021/08/26/upshot/fed-climate-change-analysis.html

 

              The blueprint for ECB tapering.

              https://www.zerohedge.com/markets/ecbs-holzmann-sparks-fears-ecb-taper-wont-happen-long-time-here-blueprint-pepp-tapering

 

            Inflation

 

              Here is another example of shrinkflation.

              https://cafehayek.com/2021/08/hidden-inflation.html

 

              This is the Cleveland Fed’s update on expected August CPI.

              https://econbrowser.com/archives/2021/08/inflation-outlook-looking-forward-to-august-data

 

              John Paulson warns about inflation.

              https://www.zerohedge.com/commodities/parabolic-gold-john-paulson-warns-inflation-well-above-expectations-its-way

 

            The coronavirus

 

One of the problems in assessing the seriousness of this disease is how it has been measured.  This article offers some insight into how it is being measured and how that could be improved.

              https://coyoteblog.com/coyote_blog/2021/08/crazy-government-responses-to-covid-part-3-the-wrong-metrics.html

 

 

     Bottom line.

 

            The latest from John Mauldin.

            https://www.advisorperspectives.com/commentaries/2021/08/27/perfect-storms?firm=mauldin-economics

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

This author argues that speculation is a necessary part of capital formation, innovation and economic progress.  However, he fails to differentiate between a venture capitalist speculating on a new technology and a seventeen year old meme stock player speculating in AMC.

https://investoramnesia.com/2021/08/29/speculation-is-necessary-governments-can-help/

 

            Ten pieces of advice for young workers.

            https://ritholtz.com/2021/08/wisdom-i-wish-i-knew-30-years-ago/

 

            We know how to solve global poverty because we already are.

            https://www.adamsmith.org/blog/fortunately-we-know-how-to-solve-this-problem-global-neoliberalism

 

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