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Wednesday, October 27, 2021

The Market Is Looking Through Hot Inflation, For Now

Authored by Bryce Coward via Knowledge Leaders Capital blog,This week saw some doozy inflation readings beginning on Wednesday with the CPI reading and then again on Thursday with the PPI. CPI came in at 4.2% year-over-year, but a whopping 0.8% month-over-month. For context, 0.8% MoM implies 10% annualized inflation! The PPI was also hot, coming…

Market Cap Of Money-Losing Companies Surpasses Dot Com Bubble Record

In a recent note from SocGen's Andrew Lapthorne, the cross-asset strategist summarizes the ongoing market insanity delightfully, saying that "there is an increasingly large number of weird and wonderful signs of market excess, from surging crypto currencies started as a joke to a single New Jersey Deli trading at $100m market cap."To be sure, it's…

Market Prices In Accelerated Fed Rate-Hike Timing/Trajectory; Specs Dump Bonds, Abandon VIX Shorts

As stocks continue to rise ever higher, riding a carpet of global liquidity, there are signs that tsunami of support is losing its mojo...Source: BloombergIn fact, global central bank balance sheets have flatlined...Source: BloombergAnd as central bank balance sheet expansion slows, the market is rapidly accelerating the timeline for The Fed's first rate-hike (markets now…

IPO Market Starts To Show Cracks As Tech Deals Falter

Caught between the rock of Xi JInping tracking down on local tech companies (see "China Considers Creating State-Backed Company to Oversee Tech Data")  and the hard place of the continued dumping by Archegos of various Chinese tech blocks, Bloomberg's Julia Fioretti notes that "the cracks are appearing in Asia’s tech listings boom."The latest to disappoint…

Market Cheers After Solid 3Y Auction Averts Another Bond Disaster

Two weeks after the catastrophic 7Y auction on February 25 sparked bond market turmoil, bond traders were on edge ahead of today's 3Y auction, even though we explained yesterday why they can relax as the Biden stimulus paradoxically gave banks more capacity to absorb paper and it was very much unlikely the 7Y disaster would…

To Save The Stock Market, The Fed Threatens Destruction Of Trillions In Middle-Class Retirement

Authored by Allan Sloan via ProPublica, The Federal Reserve, which these days seems to be the only major part of the federal government capable of operating drama-free, has done a lot to help keep our economy afloat. It has cut interest rates to unprecedented low levels, bought billions of dollars of corporate IOUs, helped stabilize…

FOMC Preview: The Fed Must Find Ways To “Out Dove” Market Expectations

While nobody expects any fireworks from the Fed tomorrow or any major market-moving announcement, the FOMC meeting will likely involve a debate over the toolkit with a discussion of how to pivot from "stabilization" to "accommodation" policies according to BofA strategists, who notes that while there likely is an agreement that the next steps should…

22 Market Observations From Goldman’s Head Of Hedge Fund Sales

By Tony Pasquariello, global head of HF Sales at Goldman For the financial markets, the period since late February has been a watershed - a genuinely epic sequence of action and reaction. In tactical terms, there’s no shortage of stories to recount.  there was the day when S&P closed down ... 12% (and, thereafter, the…

Housing Market Outside New York City Booms As City Dwellers Flee 

While observing national housing trends, we have recently found wealthy Americans and anyone else who has the economic mobility are selling real estate in big cities and have fled to rural communities amid fresh concerns of the second coronavirus wave and ongoing social unrest.  We've documented this phenomenon, in several pieces, is happening across several major metropolitan areas: Wealthy…

Companies Call The Market Top With Most Stock Sales In Eight Years

If one asks companies why the market, by which we of course mean just the top 5 tech names that now comprise "the market"... ... has soared 30% in the past two months, the most likely response is a blank stare: after all nearly 30% of companies have pulled guidance as nobody has any idea…

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