Crumbs
- gold miners have a higher free cashflow yield than tech stocks. Not sure exactly how measured, but it feels right,
- RAGA rage. A lobbying group to elect Rep. attorneys general has links to unsavoury companies. Colour me gobsmacked.
Wrap
Retail sales fell unexpectedly in Dec 2020. Online trade actually slumped a lot: by 5.8%. It looks as though getting through the full Biden stimulus measures will be tougher than was at first thought. The NRA declared bankruptcy.
CNN issues correction of the week, noting that Rep. Ted Lieu grabbed a ProBar energy bar and not a crowbar. Well, I thought it was funny.
Probably because of the retail sales decline, this was a risk-off (deflationary outlook) day:
- Virtually all equity indexes down, incl. Japan, China & Australia up, but timezone effects?
- Dollar was up: real intrest rates going up, will drive down inflation, will lift dollar,
- Commodities mixed. Crude down 2.7%, but gas up 3.3% (surging demand in Japan). Nickel was up a lot (3.5%),
- US yields dropped, because of the deflationary implications of a drop in demand.
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