Tuesday, January 4, 2022

The Morning Call---The growing problem of the misallocation of capital

The Morning Call

 

 

1/4/22

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/bonds-bullion-battered-big-tech-takes-start-new-year

 

            Using moving averages as a timing device.

            https://www.advisorperspectives.com/dshort/updates/2021/12/31/moving-averages-s-p-up-4-4-in-december

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

November construction spending was up 0.4% versus predictions of +0.6%.

                          https://www.calculatedriskblog.com/2022/01/construction-spending-increased-04-in.html

 

The final December manufacturing PMI came in at 57.7 versus expectations of 57.8.

 

                        International

 

November German retail sales grew 0.6% versus estimates of -0.5%; the November unemployment rate was 5.2% versus 5.3%.

 

The final December Japanese manufacturing PMI was reported at 54.3 versus consensus of 54.2; the final December Chinese Caixin manufacturing PMI was 50.9 versus 50.0; the final December UK manufacturing PMI was 57.9 versus 57.6.

 

                        Other

 

                          Money has never felt so fake.

                          https://www.vox.com/the-goods/22832438/nft-gamestop-amc-crypto-bubble

 

            The coronavirus

 

              The covid insanity has to end.

              https://www.nationalreview.com/2022/01/the-covid-insanity-has-to-end/

 

     Bottom line.

           

            Th growing problem of the misallocation of capital.

            https://www.project-syndicate.org/commentary/misallocation-of-capital-us-economy-by-amar-bhide-2021-12

 

            Small cap stocks could be in trouble in 2022.

            https://www.advisorperspectives.com/commentaries/2022/01/03/small-caps-could-be-in-trouble-in-2022

 

            What to buy?

            https://alephblog.com/2021/12/18/separate-processes/

 

            Another timely observation from Barry Ritholtz.

            https://ritholtz.com/2022/01/what-does-equal-weight-sp500-say-about-top-5-stocks/

           

            Reasons to stay bullish.

            https://www.zerohedge.com/the-market-ear/c5stevqtas

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

            Why are meetings so boring?

            https://marginalrevolution.com/marginalrevolution/2022/01/why-are-meetings-so-bad.html

 

 

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