Friday, August 27, 2021

The Morning Call--No good choices

 

The Morning Call

 

8/27/21

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/stocks-slide-kabul-blast-kaplan-bullard-bad-data

 

            More on the deteriorating breadth in the Market.

            https://www.advisorperspectives.com/commentaries/2021/08/26/you-take-my-breadth-away-markets-underlying-deterioration

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          Weekly jobless claims came in at 353,000 versus expectations of 350,000.

 

Q2 2nd estimate of GDP growth was 6.6% versus consensus of 6.7%; the price indicator was +6.2% versus 6.0%.

https://www.advisorperspectives.com/dshort/updates/2021/08/26/q2-gdp-second-estimate-real-gdp-inches-up-to-6-6

 

July personal income rose 1.1% versus forecasts of +0.2%; personal spending  was up 0.3%, in line.

 

The July goods trade balance was -$86.3 billion versus -$92.0 billion in June.

 

The July PCE price index increased 0.4% versus 0.5% in June; the core PCE price index was up 0.3%, in line.

 

The August Kansas City Fed manufacturing index was 22 versus 41 reported in July.

 

                        International

 

                        Other

 

            The Fed

 

What a great idea.  Let’s add climate change to the growing number of mandates (inflation, unemployment, the Market) the Fed needs to factor into monetary policy.  After all, it has done such a bang up job of managing its current mandates.

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

 

I noted yesterday that the Fed had painted itself into a corner; that is, whatever decision it makes (taper or no taper), the consequences are bad.  Here is another voice on that point.

              https://www.zerohedge.com/markets/mistake-things-are-coming-head-markets

 

            Inflation

 

This is a comparative analysis of how current inflation is impacting different income groups (i.e., rich versus poor).

              http://jwmason.org/slackwire/inflation-for-whom/

 

What is going to happen to all the money pumped into the economy by the politicians ($5 trillion and counting) and the Fed ($4 trillion and counting)?  So far, I haven’t heard a good answer.

              https://www.nakedcapitalism.com/2021/08/the-most-monstrously-overstimulated-economy-markets-ever.html

 

              The global supply chain problems are getting worse.  That can’t be good for prices.

              https://www.bloomberg.com/news/articles/2021-08-25/the-world-economy-s-supply-chain-problem-keeps-getting-worse?srnd=premium&sref=loFkkPMQ

                       

                          Speaking of which, BoA’s ‘nontransitory’ inflation meter just hit a new high.

              https://www.zerohedge.com/markets/one-banks-non-transitory-inflation-meter-just-hit-new-record-high

 

            The coronavirus

 

There are two counterfactuals to all the covid death infections/deaths stats which our political and chattering classes have chosen to ignore.  This article addresses one of them:  how many people died because they were unable to be diagnosed/treated for other diseases because our medical system was (unnecessarily?) in gridlock.

https://www.adamsmith.org/blog/the-core-lesson-of-economics

 

Here is another blow to the current narrative: natural immunity is thirteen times more effective than vaccination induced immunity.

              https://www.zerohedge.com/covid-19/ends-debate-israeli-study-shows-natural-immunity-13x-more-effective-vaccines-stopping

 

            Afghanistan

 

Here is a tally of the equipment the US is leaving behind in Afghanistan.  Does this make us the world’s largest weapons supplier to terrorists?

              https://www.dailywire.com/news/u-s-leaving-behind-75000-vehicles-600000-weapons-208-aircraft-in-afghanistan-watchdog-says

 

    News on Stocks in Our Portfolios

 

Altria (NYSE:MO) declares $0.90/share quarterly dividend4.7% increase from prior dividend of $0.86.

What I am reading today

 

           

 

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