The Morning Call---The stupidity of student loan forgiveness

 

The Morning Call

 

6/3/22

 

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/bad-news-good-news-stocks-soar-macro-meltdown-accelerates

 

            Retail investors are no longer forced sellers of stocks.

            https://www.zerohedge.com/markets/retail-investors-have-capitulated-and-are-no-longer-forced-sellers

 

            When will the bear market end?

            https://www.zerohedge.com/markets/when-will-bear-market-end

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

April factory orders rose 0.3% versus consensus of +0.7%; ex transportation they were up 0.3% versus +1.4%.

 

                          May light vehicle sales totaled 12.7 million versus 14.3 million in April.

 

May nonfarm payrolls rose 390,000 versus forecasts of up 325,000; the May unemployment rate was 3.6% versus 3.5%.

                          https://www.zerohedge.com/markets/may-payrolls-drop-13-month-low-come-hotter-expected

 

                        International

 

The April German trade balance was E+1.3 billion versus projections of E+7.3 billion; the May services PMI was 55.0 versus 56.3; the May composite PMI was 53.7 versus 54.6.

 

April EU retail sales declined 1.3% versus estimates of +0.3%; the May services PMI was 56.1 versus 56.3; the May composite PMI as 54.8 versus 54.9.

 

The May Japanese services PMI was 52.6 versus expectations of 51.7; the May composite PMI was 52.3 versus 51.4.

 

                        Other

 

            The Fed

 

              It has done a terrible job.

              https://www.zerohedge.com/markets/judy-shelton-fed-can-only-kill-economy-whatever-it-takes-approach

 

Fiscal Policy

 

              The sheer stupidity of student loan forgiveness.

              https://www.zerohedge.com/markets/sheer-stupidity-student-loan-forgiveness-while-inflation-rages-out-control

 

            Inflation

 

              Here is the argument for why inflation has not peaked.

              https://brownstone.org/articles/inflationary-pressure-is-worse-than-they-say/

 

              Sort of a counterpoint.

              https://thereformedbroker.com/2022/06/02/labor-market-cooling-to-pre-pandemic-conditions/

 

              Inflation in the charts.

              https://www.advisorperspectives.com/dshort/updates/2022/06/01/cpi-and-pce-two-measures-of-inflation-and-fed-policy

 

              Rents are up but the pace is slowing.

              https://www.calculatedriskblog.com/2022/06/rent-increases-up-sharply-year-over.html

 

              The oil industry’s downstream nightmare is here to stay.

              https://www.nakedcapitalism.com/2022/06/the-oil-industrys-downstream-nightmare-is-here-to-stay.html

           

 

    Bottom line.

 

            More on valuation.

            https://www.advisorperspectives.com/dshort/updates/2022/06/01/regression-to-trend-131-above-trend-in-may

 

            Hedge funds are becoming more bearish.

            https://www.ft.com/content/5b50ffb2-4310-4c88-80c9-f2db7420e733

 

            May dividends by the numbers.

            https://politicalcalculations.blogspot.com/2022/06/dividends-by-numbers-in-may-2022.html#.YpkJZnbMKUk

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

Meteorite bears imprint of supernova that exploded before our solar system was born.

                        https://www.syfy.com/syfy-wire/bad-astronomy-hypatia-meteorite-linked-to-a-white-dwarf-supernova

 

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