3 compounding primary reasons for inflation to be high.
We observe 3 compounding primary reasons for inflation to be high: 1. Structural primary US budget deficit (ditto most other G7 countries except Germany) 2. Aggressive monetary (over)stimulus 3. Commodity cycle turning up after 7 years of undersupply Beyond these drivers, we have nothing to worry about! ...
Healthcare exhibits a classic case of Market Failure
Haven, the Amazon-Berkshire-JPMorgan venture to disrupt health care, is disbanding after 3 years Remember, that this “Haven” was launched with a big fanfare that the smartest brains in Finance & Tech would finally solve the Healthcare nightmare that the US faces… Well, the US Healthcare is fundamentally unsolvable for a simple reason: Healthcare exhibits a ...
What is bizarre about the Technology sector..
What is bizarre about the Technology sector and its ambition to innovate, is that out of top 3 largest companies, both AAPL and MSFT were founded decades ago. Purely academically, companies like AAPL and MSFT should be obsolete right now and become marginalized (like an IBM or ORCL) So, it is a conflict of the ...
Energy stocks are underperforming..
Even though the price of crude oil is exhibiting decent progressive recovery, the Energy stocks are underperforming because the price of the Natural Gas is down a lot. Usually, NatGas and Oil move closely but this year their paths have diverged, reflecting local supply/demand imbalances… ...
In the year that was not short of dramatic surprises.
In the year that was not short of dramatic surprises, be amuzed by one more revelation: The Retail index (XRT) is up +50% for the year, while seemingly, defensive CVS and Walgreens (drugstores) are down! ...
Has the emergence of a new Covid strain in the UK undone the recovery trade?
Has the emergence of a new Covid strain in the UK undone the recovery trade? No, not at all if you trust the breadth and the immense size of the bond markets! Have a look at the US Treasury 30Y rates heading actually slightly higher (!) last 5 days, plotted vs. the Energy Equities, which ...