The Morning Call--Investors are overpaying for earnings

The Morning Call

 

6/9/23

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/vix-dumps-gold-bonds-pump-jobless-jump-trillion-dollar-bill-bomb-looms

 

            Time for caution.

            https://www.zerohedge.com/the-market-ear/10-reasons-why-we-are-shorting-market-here

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                        International

 

May Chinese CPI came in at -0.2% versus estimates of -0.1%; May YoY PPI was -4.6% versus -4.3%; May YoY vehicle sales were up 27.9% versus +40.0%.

           

                        Other

 

                          Recent trends in home equity.

                          https://www.calculatedriskblog.com/2023/06/corelogic-12-million-homeowners-with.html

 

               The Fed

 

                   Bond prices suffer as rate hike fears swamp traders.

        https://www.bloomberg.com/news/articles/2023-06-08/bonds-everywhere-are-suffering-as-rate-hike-fears-swamp-      traders?srnd=premium&leadSource=uverify%20wall&sref=loFkkPMQ

              

                   The end of easy money.

                   https://www.zerohedge.com/markets/end-easy-money-bankruptcy-filings-pile-fastest-rate-2010

 

               Fiscal Policy

 

                 $1 trillion Treasury deluge threatens market stability.

                 https://www.wsj.com/articles/treasurys-1-trillion-debt-deluge-threatens-market-calm-f2173ef4?mod=economy_lead_pos4

 

               Recession

              

                 The outlook for growth.

                 https://econbrowser.com/archives/2023/06/sifma-semiannual-survey-the-outlook-for-growth

 

                 Inflation drags EU economy into recession.

                 https://www.wsj.com/articles/inflation-drags-eurozone-economy-into-recession-b6ff6158?mod=business_lead_pos2

 

    Bottom line

 

               Investors are overpaying for earnings.

               https://www.zerohedge.com/markets/earnings-improve-beware-trojan-horses

 

    News on Stocks in Our Portfolios

 

 

What I am reading today

 

           

 

 

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