The Morning Call---Prolonging QE is not without risks

 

The Morning Call

 

8/3/21

 

The Market

         

    Technical

 

Monday in the charts.

https://www.zerohedge.com/markets/bond-yields-black-gold-battered-ism-peaks-fed-speaks

           

            Technically speaking.

            https://www.advisorperspectives.com/commentaries/2021/08/02/technically-speaking-the-markets-next-minsky-moment

 

            Reasons not to worry about August’s seasonality.

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

 

            Or are equities in denial?

            https://www.zerohedge.com/the-market-ear/growth-scare

 

            Treasury’s liquidity tsunami is about to end.

            https://www.zerohedge.com/markets/stealth-qe-over-treasury-projects-adding-300bn-cash-dec-31-reversing-liquidity-tsunami

 

            Will gold ever move higher?

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

 

            Chinese stocks up on Beijing’s signal of more economic support.

https://finance.yahoo.com/news/chinese-stocks-rebound-traders-weigh-033002174.html?guccounter=1&guce_referrer=aHR0cHM6Ly9uZXdzLmdvb2dsZS5jb20v&guce_referrer_sig=AQAAAAWO6py893Ix9vzHh_KJzKwUtKamRV6i0RXZWps0f80Fud4i3yBNw8pgJWGifnd0aO7U9A5w5Khq4FwCeZ-JMVVe0A-BkSkxtci_dD9za9onRBm-jWnCI5ad30XXTZ-rQoVLuebPe39bcm5Yrr9pp5scMPDFM30dXfZhYz5_T-f0

 

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                          June construction spending was up 0.1% versus consensus of +0.4%.

                          https://www.calculatedriskblog.com/2021/08/construction-spending-increased-01-in.html

 

                          The July manufacturing PMI came in at 63.4 versus expectations of 63.1

https://www.advisorperspectives.com/dshort/updates/2021/08/02/july-markit-manufacturing-record-high-also-record-supply-delays-and-price-pressures

 

The July ISM manufacturing index was reported at 59.5 versus [projections of 60.9.                   

                          https://www.advisorperspectives.com/dshort/updates/2021/08/02/july-ism-manufacturing-index-demand-expanded-consumption-improved

 

                        International

 

                          June EU PPI was up 1.4%, in line.

 

                        Other

 

            The Fed

 

              Defective monetary policy and slowing economic growth.

              https://www.zerohedge.com/markets/grossly-defective-product-how-strong-economy-really

 

              Prolonging QE is not without risks.

              https://www.zerohedge.com/economics/asset-prices-so-frothy-former-rbi-governor-fears-dangers-endless-qe

 

            Fiscal Policy

 

Senate group finalizes  proposed $1.2 trillion infrastructure bill.  Note: this article only tells you what $550 billion will be spent on.

              https://www.cnn.com/2021/08/01/politics/infrastructure-bill-senate-bipartisan/index.html

 

            Inflation

 

              An interesting perspective on the current ‘transitory’ inflation debate.

              https://www.calculatedriskblog.com/2021/08/a-few-comments-on-inflation.html

 

            The coronavirus

 

              Mangling the data.

              https://townhall.com/tipsheet/mattvespa/2021/08/02/the-covid-death-toll-spike-that-never-happened-last-week-this-is-why-n2593438

 

            China

           

              America’s Chinese fentanyl flood.

              https://www.zerohedge.com/geopolitical/americas-chinese-fentanyl-flood

 

    News on Stocks in Our Portfolios

 

T. Rowe Price (NASDAQ:TROW) declares $1.08/share quarterly dividend, in line with previous.

 

Cummins (NYSE:CMI): Q2 GAAP EPS of $4.10 beats by $0.05.

Revenue of $6.11B (+58.7% Y/Y) beats by $110M.

 

 

What I am reading today

 

            Meddling in our lives.

            https://www.adamsmith.org/blog/meddling-in-our-lives

 

            22 maxims of Sir John Templeton.

            https://monevator.com/22-maxims-templeton/

 

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