The Morning Call--Worrisome stock market concentration

 

The Morning Call

 

6/14/24

 

The Market

         

    Technical

 

            Thursday in the charts.

            https://www.zerohedge.com/markets/bonds-big-tech-bid-everything-else-dumped-despite-bad-data

 

            The frustrating lack of breadth.

            https://www.zerohedge.com/markets/not-fun-under-hood-goldman-trader-highlights-increasing-frustration-over-lack-breadth

 

            Three volatility charts.

            https://www.zerohedge.com/the-market-ear/3-volatility-charts-what-if-spills-over

 

            Top or not?

            https://www.zerohedge.com/the-market-ear/top-or-not

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

                        International

 

April Japanese industrial production fell 0.9% versus consensus of -0.1%; April capacity utilization was up 0,3% versus -0.2%.

 

The April EU trade balance was +E15 billion versus projections of +E20 billion.

 

                        Other

 

                          Dollar doomsters have it all wrong.

                          https://www.nakedcapitalism.com/2024/06/dollar-doomsters-have-got-it-all-wrong.html

 

            The Fed

 

Investors don’t believe the Fed. And why should they? The Fed has consistently been wrong in its policy moves (‘transitory inflation’ being the latest) and has never, ever made a successful transition from tight to normal monetary policy.

              https://www.nytimes.com/2024/06/13/business/dealbook/markets-record-fed-inflation.html

 

                  Part two.

  https://www.bloomberg.com/news/articles/2024-06-12/bond-market-splits-from-fed-again-by-betting-on-2024-rate-cuts?srnd=homepage-americas&sref=loFkkPMQ

 

 

            Inflation

 

              A deep dive inside CPI.

              https://wolfstreet.com/2024/06/12/beneath-the-skin-of-cpi-inflation-a-stunning-outlier-services-cpi-drove-down-everything-else/

 

              PPI continues to decline.

              https://econbrowser.com/archives/2024/06/all-downward-instantaneous-core-inflation-measures-for-may

 

            Recession

 

              More on the commercial real estate bust.

              https://mrzepczynski.blogspot.com/2024/06/whistling-in-graveyard-of-cmbs.html

           

The Financial System

 

              Large US banks are resisting the call for bigger capital cushions.

  https://www.bloomberg.com/news/articles/2024-06-12/why-big-us-banks-are-resisting-basel-iii-and-bigger-capital-cushions?srnd=homepage-americas&sref=loFkkPMQ

 

            Geopolitics

 

              There are only downsides to prolonging the Ukrainian conflict.

              https://www.zerohedge.com/geopolitical/there-are-only-downsides-prolonging-war-ukraine

 

     Bottom line.

 

            How worrisome is the current high stock market concentration? (must read)

            https://disciplinefunds.com/2024/06/12/how-worrisome-is-high-stock-market-concentration/

 

    News on Stocks in Our Portfolios

 

Williams-Sonoma (NYSE:WSM) Thursday said that its Board of Directors has declared a two-for-one stock split through a stock dividend to make its stock more accessible to investors and employees.

Williams-Sonoma (NYSE:WSM) declares $1.14/share quarterly dividend, 0.9% increase from prior dividend of $1.13.

 

 

What I am reading today

 

            Quote of the day.

            https://cafehayek.com/2024/06/bonus-quotation-of-the-day-1035.html

 

 

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