Winter Is Coming

Winter Is Coming

Albert Edwards latest this week was more like “Winter is coming” from Game of Thrones ( I still remember his ice age thesis). So let’s jump on to him. But before that, look at this chart from Bloomberg which is now pricing in just one more Fed rate hike in 2019. Heisenberg writes “Albert also […]
4 Profitable Stocks Boasting Amazingly High Net Income Ratio

4 Profitable Stocks Boasting Amazingly High Net Income Ratio

Profitability analysis is considered one of the best possible ways to assess the prospects of a company. This analysis is used to identify a profitable company from a loss-making one. In this context, it can be inferred that a profitable company generally has a high level of sales surplus, which will help it meet all […]
5Y Auction Prices On The Screws As Direct Bidders Return

5Y Auction Prices On The Screws As Direct Bidders Return

After yesterday’s strong 2Y auction which saw a surge in Direct Bidders after the unexpected October plunge, rates traders were looking forward to today’s sale of $40BN in 5Y paper ($1BN more than last month) to see if the Direct bidding normalization continued. It did. Pricing at a high yield of 2.880%, today’s 5Y auction […]
Health Insurance Innovations Slides As Short-Seller Accuses Company Of ‘Deceptive Sales Tactics’

Health Insurance Innovations Slides As Short-Seller Accuses Company Of ‘Deceptive Sales Tactics’

Shares of Health Insurance Innovations (HIIQ) are under pressure after Aurelius Value said it is short the stock as it believes the company’s business model relies on a “classic boiler room scam”. The short-seller argued that previously sealed documents gathered by the Federal Trade Commission “prove that a large boiler room operation recently shuttered by […]
Tesla’s China Sales Plunge 70% In October

Tesla’s China Sales Plunge 70% In October

Tesla stock was down 2% in the premarket session after Reuters reported that the company’s vehicle sales in China for October tumbled an astonishing 70% from last month. According to the China Passenger Car Association, Tesla sold just 211 cars in the world’s largest auto market in October. The 70% drop in sales comes after the company admitted […]
Charts That Matter – Tuesday, Nov. 27

Charts That Matter – Tuesday, Nov. 27

Global Auto Sales, through September YoY: This kind of fall was seen a decade back, but then it was a crisis. I think the consumer is getting increasingly tapped out and this also applies to emerging markets. Fund managers expect deterioration in global corporate margins over the next twelve months. Multiple headwinds of rising rates along […]
Is The Market Catching Its Breadth?

Is The Market Catching Its Breadth?

Concentration is the bugaboo of capitalization-weighted indices. We’ve seen this risk made manifest in the SPDR S&P 500 ETF (NYSE Arca: SPY) over the past year. Cast your peepers on the chart below. The red line depicts the course of the S&P 500 Breadth Ratio, the black traces SPY’s daily closing price. Notice how the red line turned […]
Global Debt Bubble: The 247 Trillion Overhang

Global Debt Bubble: The 247 Trillion Overhang

The Institute of International Finance has made another unpleasant announcement. Or call it a warning. The global debt hit a record of $247 trillion during the first quarter of 2018. Global debt is up by $30 trillion since the fourth quarter of 2016 and $8 trillion since the fourth quarter of 2017. The zeros have taken […]
Consumer Confidence Dips As Hope Fades

Consumer Confidence Dips As Hope Fades

After surging to new cycle highs in October, Conference Board Consumer Confidence was expected to weaken in October and it did (dropping from 137.9 to 135.7). While the Present Situation rose modestly to new cycle highs (from a revised lower October print), Expectations (hope) in November tumbled… Consumers’ optimism about the short-term future declined in November. The […]
Microsoft Closes In On Apple As World’s Largest Company

Microsoft Closes In On Apple As World’s Largest Company

Below is a chart comparing the market caps of Apple (AAPL) and Microsoft (MSFT) going back to 1986. While Microsoft dominated Apple during the 80s and 90s, Steve Jobs finally one-upped Bill Gates with the release of the iPod and then the iPhone in the mid-2000s. After peaking in market cap at the highs of the Dot […]