Wednesday, June 18, 2025

The Morning Call---The two sides of our deficit/debt problem

 

The Morning Call

 

6/18/25

 

The Market

         

    Technical

 

            Tuesday in the charts.

            https://www.zerohedge.com/markets/trump-threats-hard-data-dump-sink-stocks-crypto-bonds-dollar-bid

 

                Tuesday in the technical stats.

            https://www.barchart.com/stocks/momentum

            https://www.barchart.com/stocks/sectors/sectors-heat-map

 

            Everyone is short the dollar.

            https://www.zerohedge.com/markets/biggest-pain-trade-long-us-dollar-latest-fund-manager-survey-finds-everyone-short-buck

 

            Strategic silver.

            https://www.zerohedge.com/the-market-ear/strategic-silver-fuelling-missiles-and-gpus

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Weekly mortgage applications fell 2.6% while purchase applications were down 3.0%.

           

Weekly initial jobless claims totaled 245,000 versus projections of 245,000.

 

                          Month to date retail chain store sales grew faster than in the prior week.

 

                          May industrial production declined 0.2% versus forecasts of +0.1%.

 

May housing starts were down 9.8% versus an anticipated decline of 0.8%; May building permits were off 2.0% versus -1.5%,

                          https://www.zerohedge.com/personal-finance/housing-starts-permits-plunge-weakest-covid-lockdowns

 

                          The June housing index came in at 32 versus predictions of 36.

                          https://www.advisorperspectives.com/dshort/updates/2025/06/17/nahb-housing-market-index-builder-confidence-june-2025

 

                        International

 

April Japanese machine orders declined 9.1% versus estimates of -9/7%; the May trade balance was -Y647.6 billion versus -Y893 billion.

 

May UK CPI was +0.2%, in line; core CPI was also +0.2% also in line.

 

May EU CPI was 0.0%, in line.

 

                        Other

 

                          Implications of the recent retail sales and industrial production data.

                          https://bonddad.blogspot.com/2025/06/industrial-and-manufacturing-production.html

 

            Monetary Policy

 

              Ed Yardini’s thoughts on today’s FOMC meeting.

              "UNCONDITONAL SURRENDER"

 

              From ZeroHedge: no change but watch the dot plot.

              https://www.zerohedge.com/markets/fomc-preview-fed-too-uncertain-change-anything-watch-hawkish-dots

 

              Don’t raise the inflation rate target.

              https://www.econlib.org/mission-accomplished/

 

            Fiscal Policy

 

              The absurdity of our ruling class’s approach to the big, beautiful bill.

              https://allisonschrager.substack.com/p/fair-weather-hawks

 

              Senate changes to the big beautiful bill.

              https://mishtalk.com/economics/the-senate-makes-big-changes-to-trumps-one-big-beautiful-bill/

 

              The potential good news for our deficit/debt problem.

              https://www.advisorperspectives.com/commentaries/2025/06/16/deficit-narrative-may-find-cure-artificial-intelligence

 

              Counterpoint.

              https://www.zerohedge.com/political/open-letter-president-addressing-our-debt

 

DOGE probably won’t/wouldn’t have worked because congress/Trump would have just spent the savings on something else.

              https://www.realclearmarkets.com/articles/2025/06/17/spending_cuts_wont_shrink_government_and_may_well_expand_it_1116944.html

 

 

              Government cannot create prosperity.

              https://www.realclearmarkets.com/articles/2025/06/17/contra_klaus_schwab_government_cannot_create_prosperity_1116989.html

 

            Recession

 

              Update on recession odds.

              https://politicalcalculations.blogspot.com/2025/06/us-recession-odds-holding-mostly-steady.html

 

              Update on big four recession indictors.

              https://www.advisorperspectives.com/dshort/updates/2025/06/17/the-big-four-recession-indicators-real-retail-sales-fall-1-0-in-may

 

Despite all the doomsday forecasts, the economy is still making progress. I would add: in spite of the machinations of our ruling class (tariffs, deficit spending). It is a tribute to American ingenuity and hard work.

https://www.foxnews.com/opinion/lefts-tariff-doomsday-predictions-fall-flat-trumps-america-thrives

 

            Geopolitics

 

              The redirection trap.

              https://www.zerohedge.com/geopolitical/trump-falling-hershs-prophetic-redirection-trap-iran-3-views-whats-next

 

    Investing

 

            The uncertainty of uncertainty.

            https://alhambrapartners.com/weekly-market-pulse-the-uncertainty-of-uncertainty/?src=news

 

             Five Star manager on investing in AI.

            https://www.marketwatch.com/story/this-five-star-fund-manager-says-even-smart-investors-have-been-missing-the-greatest-theme-of-our-time-393b40ba

 

            What if you missed the Markets best N days?

            https://www.aqr.com/Insights/Perspectives/So-What-If-You-Miss-the-Markets-N-Best-Days

 

            Managing the noise.

            https://ritholtz.com/2025/06/manage-the-noise/

 

    News on Stocks in Our Portfolios

 

 

 

What I am reading today

 

           

 

 

Visit Investing for Survival’s website (http://investingforsurvival.com/home) to learn more about our Investment Strategy, Prices Disciplines and Subscriber Service.

 

 

 

No comments:

Post a Comment