The Morning Call---Benign credit selloff?

 

The Morning Call

 

2/8/22

 

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/bitcoin-bullion-surge-eu-credit-crisis-risk-re-emerges

 

            Institutions back in charge.

            https://www.bloomberg.com/news/articles/2022-02-05/adults-back-in-charge-of-stock-market-as-fed-awakens-big-money?sref=loFkkPMQ

 

            A 50% decline would only be a correction.

            https://www.zerohedge.com/markets/50-decline-will-only-be-correction

 

            Benign credit sell off?

            https://www.zerohedge.com/markets/credit-canary-upends-hope-benign-bond-selloff

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

December consumer credit grew $18.9 billion versus forecasts of $22 billion.

                          https://www.zerohedge.com/economics/consumer-debt-growth-tumbles-50-amid-sharp-slowdown-credit-card-usage-decline-student

 

The January small business optimism index was reported at 97.1 versus projections of 98.0.

 

                        International

 

December Japanese household spending was up 0.1% versus expectations of +0.7%; December YoY cash spending was -0.2% versus +0.2%.

 

                        Other

 

                          Update on six high frequency economic indicators.

                          https://www.calculatedriskblog.com/2022/02/six-high-frequency-indicators-for.html

 

                          US set to announce new Asia Pacific economic policy.

                          https://www.wsj.com/articles/u-s-readies-new-asia-pacific-economic-strategy-to-counter-china-11644148801?mod=hp_lead_pos5

 

                          More analysis on the wealth inequality in the US.

                          https://ritholtz.com/2022/02/super-wealthy/

 

                          MMT fails its first big test.

                          https://www.pragcap.com/mmt-failed-its-first-big-inflation-test/

 

            Fiscal Policy

 

              The national debt hits another dubious milestone.

              https://www.realclearmarkets.com/articles/2022/02/07/the_national_debt_reaches_another_dubious_milestone_815367.html

 

              The costs and consequences of too much debt (must read).

              https://www.advisorperspectives.com/commentaries/2022/02/07/potemkin-economy-costs-consequences

 

            Inflation

 

              Monetary and fiscal policies are in dire need of reform.

              https://thehill.com/opinion/finance/592965-inflation-where-do-we-go-from-here

 

              Goldman strategist sees shortages in everything.

              https://www.zerohedge.com/markets/ive-never-seen-market-goldman-sees-shortages-everything-you-name-it-were-out-it

 

            Geopolitics

 

              Blinken’s propaganda.

  https://www.nakedcapitalism.com/2022/02/blinkens-booby-traps-how-the-us-propaganda-paper-released-in-madrid-proposes-to-go-to-war-with-russia-while-claiming-to-do-the-opposite.html

 

              Ukraine and NATO agree that the likelihood of a Russian invasion is low.

              https://www.zerohedge.com/geopolitical/ukraine-nato-hq-agree-threat-russian-invasion-low-us-continues-apocalyptic-rhetoric

 

     Bottom line.

           

            Update on valuations.

            https://www.advisorperspectives.com/dshort/updates/2022/02/04/p-e10-january-2022-update

            https://www.advisorperspectives.com/dshort/updates/2022/02/04/the-q-ratio-and-market-valuation-january-update

               

                Eight of the biggest investing myths.

            https://awealthofcommonsense.com/2022/02/the-8-biggest-investing-myths/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

                        Why government directed pharmaceutical research will never work.

            https://www.adamsmith.org/blog/why-government-directed-and-paid-for-pharmaceutical-research-will-never-work

 

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