Wednesday, September 6, 2023

The Morning Call---The biggest threat to global liquidity is China

The Morning Call

 

9/6/23

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/value-stocks-puked-growth-gains-heavy-flow-hammers-bonds

 

            What to watch in the tech and financial sectors.

            https://allstarcharts.com/2nd-highest-close-ever-for-tech/

 

Buy protection when you can, not when you must.

https://www.zerohedge.com/the-market-ear/you-buy-protection-when-you-can-not-when-you-must

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

                           

Weekly mortgage applications declined 2.9% while purchase applications were down 2.1%.

 

July factory orders fell 2.1% versus estimates of -2.5%; ex transportation, they were up 0.8% versus +0.1%.

 

                        International  

 

July German factory orders fell 11.4% versus predictions of -4.0%; the August construction PMI was 41.5 versus 41.1.

 

July EU retail sales were down 0.2% versus consensus of -0.1%; the August construction PMI was 43.2 versus 42.4.

 

                        Other

 

The Fed

 

  The biggest threat to global liquidity is China.

  https://www.zerohedge.com/markets/biggest-threat-global-liquidity-china

 

Fiscal Policy

 

  The green energy inflation reduction act already needs a bailout.

  https://www.zerohedge.com/technology/bidens-green-energy-inflation-reduction-act-needs-big-bailout-already

 

            Inflation

 

              Get ready for higher oil prices.

              https://allstarcharts.com/ready-for-higher-oil-prices/

 

            Recession

 

              We have never had a soft landing.

              https://www.themoneyillusion.com/weve-never-had-a-soft-landing/

 

              Weekly leading economic index.

              https://www.advisorperspectives.com/dshort/updates/2023/09/05/recessionalert-weekly-leading-economic-index

 

Banks strengthening their balance sheets may be good for the financial system but it not conducive to economic growth.

https://www.reuters.com/business/finance/us-banks-hold-33-trillion-cash-amid-banking-crisis-slowdown-worries-2023-09-05/

 

                  A strong labor market doesn’t mean that the economy is recession proof.

              https://www.nytimes.com/2023/09/04/opinion/recession-unemployment-federal-reserve.html

 

                  Eurozone contracts in August.

              https://www.pmi.spglobal.com/Public/Home/PressRelease/382c7872528a4f48bf03911ae648e7f1

                 

 Global manufacturing contraction slows in August.

              https://www.pmi.spglobal.com/Public/Home/PressRelease/81f575b89b394e69bd09aa9b50fde063

 

                  Is a subprime credit card crisis looming?

              https://www.zerohedge.com/political/subprime-credit-card-crisis-looming

 

                The Financial System

 

              The truth about proposed changes to bank capital rules.

              https://www.ft.com/content/cbfc316b-7049-4658-941f-6d25559d754d

 

                Civil Strife

 

              Noble sacrifices.

              https://www.advisorperspectives.com/commentaries/2023/09/05/noble-sacrifices-income-alternatives-john-mauldin

 

            China

 

              Six indicators pointing to an economic slowdown in China.

              https://www.zerohedge.com/economics/six-red-flags-pointing-chinas-economic-slowdown

 

    Bottom line.

 

            Beware September.

            https://www.theguardian.com/business/2023/sep/01/september-five-cautionary-tales-economic-history-south-sea-bubble-trussonomics

 

            Update on valuations.

            https://www.advisorperspectives.com/dshort/updates/2023/09/05/buffett-valuation-indicator-august-2023-update

            https://www.advisorperspectives.com/dshort/updates/2023/09/05/market-valuation-is-the-market-still-overvalued

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

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