The Morning Call---Rate cuts versus fiscal policy

 

The Morning Call

 

8/27/24

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/dow-hits-record-high-nasdaq-dumps-oil-gold-jumps

 

            Bullish sentiment rising.

            https://www.bespokepremium.com/interactive/posts/think-big-blog/bulls-take-off

 

            And broadening.

            https://allstarcharts.com/3trillion-nvda/

 

            Gold hits new high.

            https://www.cnbc.com/2024/08/26/gold-holds-ground-on-september-us-rate-cut-expectations.html

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

The August Dallas Fed manufacturing index came in at -9.5 versus estimates of -14.0.

                          https://www.advisorperspectives.com/dshort/updates/2024/08/26/dallas-fed-manufacturing-business-activity-reaches-19-month-high-in-august

 

                        International

 

Q2 final German GDP growth was -0.1%, in line; the September consumer confidence index was -22 versus predictions of -18.

 

                        Other

 

            Monetary Policy

 

              The Powell pivot.

              https://disciplinefunds.com/2024/08/25/three-things-post-weekend-edition/

 

              Fed rate cuts versus inflationary fiscal policies.

  https://wolfstreet.com/2024/08/24/the-rate-cuts-powell-dangled-in-front-of-markets-for-next-year-may-slam-into-inflationary-fiscal-economic-policies-of-whoever-is-in-the-white-house/

 

 

            Inflation

 

              What the claims of price gouging ignore.

              https://www.msn.com/en-us/money/markets/what-kamala-harris-doesn-t-get-about-food-costs/ar-AA1pk6zu

 

            Civil Strife

 

              Feedback from the democratic convention from a liberal democrat.

              https://www.nakedcapitalism.com/2024/08/former-ambassador-chas-freeman-possible-disintegration-of-civilian-government-at-year-end.html

 

            Geopolitics

 

              This is a bit too partisan for me; but it makes a point.

              https://townhall.com/columnists/kurtschlichter/2024/08/26/what-is-happening-in-the-ukraine-war-should-scare-the-hell-out-of-us-n2643880

 

     Bottom line

 

            The latest from John Mauldin.

            https://www.advisorperspectives.com/commentaries/2024/08/26/unemployment-inflation-feds-choice-john-mauldin

 

    News on Stocks in Our Portfolios

 

Bank of Nova Scotia press release (NYSE:BNS): Q3 Non-GAAP EPS of C$1.63.

Revenue of C$8.36B (+3.6% Y/Y).

Bank of Nova Scotia (NYSE:BNS) declares CAD 1.06/share quarterly dividend, in line with previous.

What I am reading today

 

            How to avoid online scams.

            https://www.nytimes.com/2024/08/10/business/online-scams-advice.html

 

 

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