The Morning Call--The Market is disconnected from everything

 

The Morning Call

 

12/14/21

 

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/bonds-dollar-jump-stocks-crypto-dump

 

            Wipe out below the calm surface of the Market.

            https://www.zerohedge.com/markets/wipe-out-below-calm-surface-bull-market

 

            Using the VIX to your advantage.

            https://americanconsequences.com/using-market-fear-to-your-investing-advantage/

 

            Liquidity crunch coming.

            https://www.zerohedge.com/markets/liquidity-crunch-volatility-surge-coming-2022

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

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

 

The November small business optimism index was reported at 98.4 versus forecasts of 98.0.

 

November PPI was 0.8% versus consensus of 0.5%; core PPI was 0.7% versus 0.4%.

 

                          November consumer inflation expectations were +6.0%, in line.

                          https://www.zerohedge.com/markets/fed-loses-control-consumers-now-expect-10-inflation-key-staple

 

                  International

 

October Japanese industrial production rose 1.8% versus estimates of 1.1%; October EU industrial production was up 1.1% versus +1.2%.

 

The October UK unemployment rate was 4.2%, in line; October average earnings were up 4.9% versus +4.6%.

 

                        Other

                   

                          Record setting gains in wealth threatened by rising inflation.

                          https://scottgrannis.blogspot.com/2021/12/record-setting-gains-in-wealth.html

 

                    The Fed

 

                           Real interest rates are in deeply negative territory.

                          https://www.wsj.com/articles/inflation-surge-pushes-u-s-real-interest-rates-into-more-deeply-negative-territory-11639321204

 

                                                  The Fed’s dilemma.

  https://finance.yahoo.com/news/massive-u-debts-could-trap-150000058.html?guccounter=1&guce_referrer=aHR0cDovL3d3dy5jYXBpdGFsc3BlY3RhdG9yLmNvbS8&guce_referrer_sig=AQAAAMx4dvEeStpyA-9ASMF68wgDRyS91TcwyRJ1jaNvpMuyuFWAZQM4m4yJac0NiC31TnP8wpBG2_gpGVMMaUWrjr6mxrUKoXb2qYJ5FMGN1ShVPPxecnUraRQixTgegRYNdRh05L7Nl-hWvEfhdDvGyuKu-PknYX0kB7Qnr7OKQK5a

 

                    Inflation

 

                      Update on inflation expectations.

                      https://econbrowser.com/archives/2021/12/inflation-expectations

 

                      The next catalyst for inflation.

                      https://www.zerohedge.com/economics/next-catalyst-inflation-significant-and-persistent-increases-labor-costs

 

     Bottom line

 

            The Market is disconnected from everything.

            https://www.advisorperspectives.com/commentaries/2021/12/13/the-market-is-disconnected-from-everything

 

            The latest from Morgan Stanley.

            https://www.zerohedge.com/markets/morgan-stanley-warns-feds-taper-will-trigger-market-chaos-over-next-3-4-months

 

            Growth versus value stocks.

            https://blog.evergreengavekal.com/growth-stock-relative-performance/

 

            Companies expanding buyback plans while insiders dump stock. This is one of my biggest problems with the way of financial system is now working. Companies are using shareholder funds/borrowing cheap money (courtesy of the Fed) to buy the stock of their corporate executives (via their stock option awards). It is also driving the difference between executive compensation and employee compensation to record highs. This misuse of corporate assets is a bastardization of capitalism and, rightfully so, increases antagonism toward it.

https://www.nakedcapitalism.com/2021/12/share-buybacks-surge-to-record-ahead-of-potential-1-tax-companies-buy-as-insiders-dump-like-theres-no-tomorrow.html

 

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            The world’s deadliest peaks.

            https://www.zerohedge.com/medical/these-are-worlds-deadliest-peaks

 

 

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