sell it all?
market vibes
November 14…)
“You always admire what you really don’t understand.” Blaise Pascal
In the news
Risk assets are suddenly risky as the FOMC leans toward a pause. Not to mention ionospheric valuations, Nvidia’s earnings next Wednesday, and a debate whether no NFP data is better than a bad NFP data.
Michael Burry may have shut his fund but he still has his puts: “Understating depreciation by extending useful life of assets artificially boosts earnings -one of the more common frauds of the modern era.
In Europe, Macron is blaming Putin for a bedbug infestation in Paris. Ukraine hit a key Russian oil hub yesterday. And a Polish MP called von der Leyen a “Reichsführerin” in a parliamentary address, or in our parlance, Hitler. The speaker cut his mic. BBC to Trump: “Sorry, not sorry!”
At home, Restaurants in New York City are hiring virtual cashiers from the Philippines via Zoom calls and only have to pay them $3.25 per hour. Speaker Johnson plans a vote to force a full release of the Epstein files. Eric Swalwell of Fang Fang fame joins the perp parade of TDSers.
Reminscent of better days for Mr. Burry…875,000 Mortgage Holders now owe more on their homes than their homes are worth, the highest rate in 3 years, according to a new report from Intercontinental Exchange (via barchart on X)
And a bit of good news: Kristi Noem is paying TSA officers who displayed “exemplary service” during the 43-day shutdown that will receive $10,000 bonuses in addition to back pay
In the markets
S&Ps are down 2.8% from the ATH on October 31 and the media is describing this dip as a drastic reaction to a no cut narrative because assets are “massively overvalued.” I can’t add to my usual analysis without being tedious so I will just say, there’s an awful lot of red in this chart.
