The Morning Call---The real affordability problem

 

The Morning Call

 

2/3/26

 

The Market

         

    Technical

 

            Monday in the charts.

            https://www.zerohedge.com/markets/crypto-stocks-rebound-all-glitters-sold-again

 

            Monday in the technical stats.

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

            https://www.barchart.com/stocks/sectors/rankings

            https://www.barchart.com/stocks/signals/new-recommendations

 

    Fundamental

 

       Headlines

 

              The Economy

 

                        US

 

Month to date retail chain store sales advanced 6.7% versus up 7.1% in the prior week.

 

                          The January manufacturing PMI was 52.4 versus estimates of 51.9.

                          https://www.advisorperspectives.com/dshort/updates/2026/02/02/sp-global-manufacturing-pmi-january-2026

 

The January ISM manufacturing index was 52.6 versus predictions of 51.9.

                          https://www.advisorperspectives.com/dshort/updates/2026/02/02/ism-manufacturing-pmi-strongest-expansion-january-2026

 

                        International

 

                        Other

 

                          A perception gap in the US economy.

                          https://www.realclearmarkets.com/articles/2026/02/02/theres_a_perception_gap_with_the_us_economy_1161930.html

 

                                                   Update on GDP nowcast.

                          https://econbrowser.com/archives/2026/02/nowcasting-core-gdp-2

 

                          The economy is growing but there is still stagflation.

                          https://bonddad.blogspot.com/2026/02/ism-manufacturing-for-january-breaks.html

 

                        Fiscal Policy

 

              Where our immigration policy falls short.

              https://www.thebulwark.com/p/trump-is-making-america-stupider-great-brain-drain

 

              US twin deficits come home to roost.

              https://talkmarkets.com/content/us-markets/us-twin-deficits-come-home-to-roost?post=553976

 

            Inflation

 

              Why governments won’t fix the inflation problem.

              https://www.zerohedge.com/personal-finance/governments-can-fix-money-fast-here-why-they-will-not-do-it

 

            The Dollar

 

              What is going on with the dollar?

              https://ritholtz.com/2026/02/whats-going-on-with-the-dollar/

 

            Affordability

 

              The real affordability problem.

              https://www.advisorperspectives.com/commentaries/2026/02/02/real-affordability-problem

 

            Kevin Warsh

 

               One of Trump’s smartest moves.

  https://nypost.com/2026/01/31/business/kevin-warsh-tapped-as-next-fed-reserve-chairman-is-one-of-trumps-smartest-moves-a-partnership-he-needs-to-make-work/

 

              Counterpoint.

              https://www.nytimes.com/2026/02/01/opinion/trump-fed-chair-kevin-warsh.html

 

              Warsh’s return revives tensions over Fed balance sheet.

   https://www.bloomberg.com/news/articles/2026-02-01/warsh-s-return-revives-tensions-over-the-fed-s-6-6-trillion-qe-hangover?srnd=homepage-americas&sref=loFkkPMQ

 

 

Saying that you want to shrink the Fed’s balance sheet is one thing; doing it is another.

https://www.wsj.com/economy/central-banking/saying-you-want-to-shrink-the-fed-is-one-thing-doing-it-is-another-3ed0e517?mod=economy_lead_story

 

              Goldman’s trading desk on Warsh.

              https://www.zerohedge.com/markets/goldmans-trading-desk-explains-how-warsh-will-impact-rates-fed-balance-sheet-and-markets

 

            2026

 

              Where to look for performance in 2026.

              https://www.advisorperspectives.com/commentaries/2026/02/02/chase-road-runner-dont-go-over-cliff

 

              Mainstream expectations: hope versus potential risk.

                  https://www.advisorperspectives.com/commentaries/2026/02/02/mainstream-expectations-hope-potential-risk

 

     Investing

 

            What comes after the AI bubble.

            https://www.tker.co/p/ai-compared-to-electrification-internet-bubbles

 

            What is next for gold and silver?

            https://www.zerohedge.com/markets/when-will-gold-and-silver-bounce-worlds-top-precious-metal-traders-share-their-views

 

            Overnight, gold and silver bounce.

            https://www.zerohedge.com/the-market-ear/gold-and-silver-bounce-dead-cat-or-reload

 

    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.