Value Beginning to be Valued?

Many sectors of value stocks have been murdered with horrible under-performance over the past decade to 14 years. Set the Fed Funds Rate to zero, have the ECB go negative with rates and even Greek bonds throw up a negative yield. Literally junk bonds with negative yields. Greece’s three-year debt turned negative on Friday, and …

Abrupt Shift from Growth to Value?

Google is drawing regulatory scrutiny from the United States Department of Justice, which has sent their stock sliding about 7% so far today. At this point, Google has literally almost nobody on their side in the political game. Everyone has a reason to hate them. Republicans think they squelch free speech that does not align …

Effect and Cause of The China Probrem

I think it was the venerable Jim Grant who I remembered hearing emphasize that markets are reciprocals. Risk is what you take, price is what you pay & value is what you get. Quite often the explanation after the fact is getting cause and effect backward. Bonds strengthen with volatility, leading to market sell off. …

Trillion Dollar Tweets, RIP

Here’s an actual Bloomberg headline which shows just how fake the “markets” have become… Stock Traders Wait Anxiously for a Trump Tweet to Reverse Rout three weeks after the president rekindled the trade war with China, sending the Dow into a 4% tailspin, traders are growing increasingly impatient for their dose of White House succor. …

The Credit Markets Drive the Stock Market

The following Brian Reynolds interview by RealVision highlights how important pension funds are for driving the credit markets & stock market. A few notes from it: pension funds are significantly underfunded & they roughly need to get about a 7.5% return to meet cashflow obligations pensions tend to prefer the credit markets to the stock …

Scientific Games

Scientific Games (SGMS) reported earnings & the market reaction was beautiful with a powerful short squeeze causing the stock to jump 15%. I figured they were going to have a positive reaction to their earnings announcement, if for no other reason the ability to shift narrative. they had just recently spun out their SciPlay mobile …