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Excessive Optimism Is Changing Investing Patterns
December 15, 2020
There is more than excessive optimism in the market. There is a structural shift in how retail investors put their money to work. They are buying stocks directly and buying options (leverage) to a degree never seen.
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Beware of Consumer Confidence
December 15, 2020
One should always consider the political nature of consumer confidence readings when judging the economy. This is probably even truer after a contested election.
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Quick Comments/What We’re Reading
December 15, 2020
Today's topics include latest on the stimulus bill, small cap stocks, the tough recovery ahead, risks in 2021, easiest financial conditions since at least 1990, mortgage forbearance, S&P 500 P/E ratio after Tesla's inclusion, and still looking for an edge in high frequency trading
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Cartoons
December 15, 2020
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Wall Street Strategists’ New Normal
December 14, 2020
Wall Street strategists are bullish and perceive record valuations to be the "new normal." The belief is the Fed will continue to suppress interest rates, allowing these valuations to persist.
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Quick Comments/What We’re Reading
December 14, 2020
Today's topics include contrarians take note!, inflation, the savings glut, negative T-bill rates coming soon?, how will we pay for all this debt?, securing funding is tough for small companies, 2020 was good year for small banks, NY fed says no need to fear the zombies, cashing in on IPOs, more on ETFs vs. mutual funds, and updating the Georgia senate races
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Cartoons
December 14, 2020
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Negative Rates: Greece Is on the Clock
December 11, 2020
The amount of negative-yielding debt outstanding is again setting new highs as many tenors of debt in Portugal, Italy and Spain turn negative.
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Quick Comments/What We’re Reading
December 11, 2020
Today's topics include the Fed vs. the reflation trade, wall street weighs in on 2021 GDP, corporate issuance projected to decline in 2021, betting against SPACs, more on the ECB's stimulus deal, stretched valuations, Trump's texas lawsuit, the budget deficit continues to grow, your daily update on stimulus negotiations, and household net worth
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Cartoons
December 11, 2020
Charts of the Week
The Falling Number of Publicly Traded Companies
December 11, 2020
The number of publicly traded U.S. companies is almost half the peak set in 1996.