Crumbs

• Palm Valley, a long-only small cap fund, explains why everything is too expensive and inflation is coming. You’ve heard the thesis before, but this makes the case with some élan.

Wrap

• News: Trump to be impeached a second time, just before Biden’s inauguration,
• inflation running at 1.4% in Dec. vs 1.2% forecasted,
• dollar up: because inflation move might cause earlier tightening??
• stocks mixed,
• US Fed. govt. running a huge deficit vs. last year (hardly a surprise),
• dollar up (relief rally?), commodities down,
• bonds up (tightening again?).

Summary: somewhat risk off, market spooked by Trump news or inflation.

Charts

Very low stock borrow of SPY ETF: time to short?

EM overbought?

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GS clients 100% stocks will go up:

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