Stocks and Bonds

The so-called ‘Fed Model’ of the stock market says that you can just compare the dividend yield (or free cashflow yield, EBITDA yield etc.) with bond yields, to get a handle on what the stock market is doing. So, if yields fall, the stockmarket goes up (because …

There are comments.

Notes

• AO Smith might be worth a look,

KEDM summary

Stocks to watch:

• $FRTT: gold producer (miner?); a spin-off
• Technip Industries ($TE) is a forced exit play,
• $FSP has a lot of insiders buying,
• $COTY same,
• $BW same,
• $CNDT same,

• $SPOK, cluster buy, has momentum.

• $ELVT on buybacks,

• $WRLD has …

There are comments.

There is no bubble: says JPM

The Market Ear writes:

The dream team of thought-leaders at JPM had a conference call arguing that there is no bubble in the equity markets or credit markets: “We do not see a broad equity market bubble but rather certain pockets of the market …

There are comments.

• The NOK should be more correlated with global asset markets (outside of Norway) than the Norweigen economy, says Tor Vollalokken.
• Industrial capacity utilization is up, but still on a downward trend. This will depress inflation expectations.
• Coinbase is IPOing. The population is going mad about SPACs and Bitcoin.
• Modi names …

There are comments.

Crazy Cathy’s Ark may have sprung a leak

There is a lot of muttering about how once ARK Innovation’s ETF starts getting redemptions, the illiquid holdings will implode. In some cases, ARK Innovation holds a very high part of the free float. This will test Prof Plum’s …

There are comments.

Crumbs

Mark E. Jeftovic has written a piece called Deconstructing “Wokethink” in which he tries to persuade us to guard against ten cognitive biases that lead us astray. He’s jotted them down on a handy card, but really you should read the whole article. He has targetted “wokethink,” but …

There are comments.

Crumbs

Cassandra speaks, but nobody listens

Michael Burry is expecting hyperinflation, and therefore likes commodities, and uranium especially.

People say I didn't warn last time. I did, but no one listened. So I warn this time. And still, no one listens. But I will have proof I warned.

— Cassandra …

There are comments.

Crumbs

REITs

We all need somewhere to live. Homes are both a necessity, and a luxury good. A house is like a loaf of bread, we must have somewhere to rest our weary head, even if it’s a tent under a flyover. Like art or opera tickets, a house …

There are comments.

Crumbs

• Steve Mnuchin is looking for live gigs. And Zoom ones. He’s a bargain compared to Janet Yellen. But, maybe he can afford to be generous with his time.
• 
• SPAC mania continues.

News

Kim Kardardashian has filed for divorce. I’m not sure who she is, but Twitter seems …

There are comments.

Crumbs

• A good way to play energy is options on SXEP, according to JPM’s Kolanovic (h/t The Market Ear). There is a lot of talk about oil/commodities supercycles. Certainly, commodities have been fairly strong recently, and it’s not difficult to explain: a long period of under-performance …

There are comments.