The Morning Call---Modern Monetary Theory is to blame

 

The Morning Call

 

4/6/22

 

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/brainard-batters-bonds-stocks-bullion-bitcoin-fast-furious-qt-threat

 

            Reducing the Fed’s balance sheet at a rapid rate. Really?

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

 

            Buybacks are tumbling.

            https://www.zerohedge.com/markets/one-bank-spots-big-red-flag-stocks-buybacks-are-inexplicably-tumbling

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 6.3% while purchase applications were off 3.4%.

 

The March services PMI came in at 58.0 versus forecasts of 58.9; the March composite PMI was 57.7 versus 58.5.

https://www.advisorperspectives.com/dshort/updates/2022/04/05/march-markit-services-pmi-growth-quickens

 

The March ISM nonmanufacturing index was 58.3 versus predictions of 58.4.

                          https://www.advisorperspectives.com/dshort/updates/2022/04/05/ism-services-report-growth-continues

 

March vehicle sales  were 13.3 million units versus 14.7 million in February.

 

                        International

 

                          February EU PPI was up 1.1% versus expectations of 1.3%.

 

The March EU construction PMI was reported at 52.8 versus projections of 55.9; the March German construction PMI was 50.9 versus 54.2; the March UK construction PMI was 59.1 versus 57.8.

 

The March Chinese Caixin services PMI came in at 42.0 versus estimates of 49.3; the composite PMI was 43.9 versus 49.0.

 

                        Other

 

                          February median household income.

                          https://politicalcalculations.blogspot.com/2022/04/median-household-income-in-february-2022.html#.Ykycf-jMKUk

 

                          The $120 billion global grain trade is being redrawn.

  https://www.bloomberg.com/news/features/2022-04-05/will-russia-s-war-in-ukraine-cause-wheat-shortages-raise-food-prices-more?srnd=premium&sref=loFkkPMQ

 

                          Ed Yardini on the outlook for profit margins.

                          https://www.linkedin.com/in/edward-yardeni/recent-activity/

 

            Inflation

 

              Modern Monetary Theory is to blame.

              https://www.zerohedge.com/economics/putins-inflation-homegrown-modern-monetary-theory-blame

 

            Recession

 

              More on the 2s10s yield curve inversion.

              https://alhambrapartners.com/2022/04/03/weekly-market-pulse-what-now/

 

              Inversion at low yields is a problem for the Fed not the economy.

              https://www.zerohedge.com/markets/yield-curve-inversion-low-interest-rate-levels-nightmare-fed

 

              The economy is booming; so why are economists worried about recession?

              https://www.nytimes.com/2022/04/05/business/economy/recession-economy.html

 

     Bottom line.

 

            A check list for corrections.

            https://compoundadvisors.com/2022/a-checklist-for-corrections

 

            Bullish or bearish? You don’t have to pick a side.

https://realinvestmentadvice.com/bullish-or-bearish-where-are-we-now/?utm_medium=email&utm_campaign=Technically%20Speaking%20Bullish%20Or%20Bearish%20Where%20Are%20We%20Now&utm_content=Technically%20Speaking%20Bullish%20Or%20Bearish%20Where%20Are%20We%20Now+CID_327f240869d3d649ee7360b099a397dc&utm_source=RIA%20Email%20Marketing%20Software&utm_term=READ%20MORE

 

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

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