1/10

Some concerning developments on COVID in the last few hours.

A thread to explain, and a clarification ... none of what is explain below is what I want, rather it is what I fear is coming.
2/10

*S. AFRICA DAILY COVID CASES AT 37,875, BREAKING PREVIOUS RECORD

This chart does NOT include the headline above (Johns Hopkins will update all countries this evening).

A nearly 38,000 daily case count will shoot off the top and the chart will need to be rescaled.
3/10

See the rest of Africa, their case counts are also starting to go vertical (orange line).

It will be interesting to see what this data points shows when updated tonight and the coming days.
4/10

Turning to the UK

*BORIS JOHNSON TO ADDRESS U.K. ON VACCINES AT 8 P.M. SUNDAY

manchestereveningnews.co.uk/news/uk-news/b…
5/10

The 7-day average of UK COVID cases (orange) is above 50k for the first time since January, and daily cases (bars) continue to spike.
6/10

Relative vaccination rates between the US and UK.
The UK is already way ahead of the US.
7/10

Again, when cases rise, politicians panic and restrict the economy.

Hospitalizations, recoveries, and treatments matter, but POLICY is made by panicky politicians over rising case counts, like the panicky politician that is going to speak from #10 Downing in about 2 hours.
8/10

In the US we can say "people have had it with restrictions" and "we are not going to be like this."

But if the US follows Europe, as this chart suggests, watch how fast and furious the restrictions will come here.

Easy to say no restrictions will happen before the spike.
9/10

Keep in mind the cases rise in the UK is Delta, Omicron is still to come.

So, Boris will increase access to boosters and beg everyone to get a shot. And even if they do and cases still spike to near 100k/day, when Omicron comes, then what does he do?

This is my fear.
10/10

Biden will be no different, we are just further down the curve than the UK.

But when we get to where the UK is now, we will do the same things, so watch what they do in the coming weeks as it is a window to what is coming in the US.

Not what I want, it is what I fear.
Look at the responses!

Many are not reading it, giving emotional reactions. Others have "just decided" that no matter how high cases go, nothing will change.

I hope this is what happens. I do not want restrictions, by the last 22 months suggests this is wishful thinking.
Original Bloomberg headline:
*S. AFRICA DAILY COVID CASES AT 37,875, BREAKING PREVIOUS RECORD

But three hours later:
*CORRECT: SOUTH AFRICA DAILY COVID CASES 18,035

and
*SOUTH AFRICAN PRESIDENT TESTS POSITIVE FOR COVID: PRESIDENCY

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More from @biancoresearch

13 Dec
1/15

As I noted before, TIME's Person of the Year is a good contrarian indicator.

Elon Musk was named 2021 PoY earlier today.

So, what is the history of this indicator? A thread to outline.

time.com/person-of-the-…
2/15

First, the idea of Magazine cover as contrarian indicators, and especially TIME PoY was developed by one of Wall Street's greatest thinkers, Paul Macrae Montgomery.

I was honored to call him a friend.
@ritholtz remembrance in 2014

bloomberg.com/opinion/articl…
3/15

Biden Harris was PoY last year (2020).

One year later and Biden's approval rating is in the tank and Ds are figuring out what to do with Harris
Read 15 tweets
11 Dec
1/11

What is the bond market telling us?

I would argue that the Fed will hike rates so much in 2022 that they will "break something."

And they really don't have a choice.

A thread to explain.
2/11

First, what are the markets signaling?

Three rate hikes in 2022 are priced in (>50%, green).

A March hike (35%) and a potential 4th hike in February 2023 (38%) are not out of the question, still below 50% but "in the conversation."
3/11

The next chart shows, the terminal funds rate, or the rate at which the Fed will stop hiking, is somewhere between 1.75% to 2.00%.

If the Fed follows the market and hikes 4 times over the next 15-ish months, they will only be 2 hikes away from the terminal rate.
Read 14 tweets
5 Dec
1/5

A follow-up to my post that US cases are about to rise a lot, following Europe, and politicians will panic and impose economic restrictions and foster slower growth and more inflation.

@ErikSTownsend @EpsilonTheory @ttmygh @MishGEA @GeorgeGammon

2/5

Here is the vaccination chart again.

We are told that a fully vaccinated person has six-months of protection. Then one should get a booster. Image
3/5

This version shows the percentage of the population over 12-years old that has been fully vaccinated in the last six months and has gotten a booster.

Hence, the percentage of the population that is fully protected. Image
Read 5 tweets
5 Dec
1/15

A longish tweet thread to highlight where I think we are with Omicron and why I'm worried about its implications for the markets and economy.

This is about the way I see it, not what I want.

@ErikSTownsend @EpsilonTheory @ttmygh @MishGEA @GeorgeGammon
2/15

The US reported over 61k cases Sat.

The data has a strong day of the week pattern. Y'day was the most amount of Sat cases in 3-mos, worrisome.

The 7-day avg is up 65% in the last week (green).
Maybe distorted from Xgiving, but as the top panel shows, this US cases are 🚀
3/15

My long-held concern is when one of these regions spikes, the other follows. This looks more and more the case in the last few days.

Restated, history suggests the US will follow Europe to new highs, or close to it.
Read 15 tweets
4 Dec
1/7

I've been arguing for some time, this is the most chart right now. When one spikes, the other follows.

So, with Europe spiking to new all-time highs, will the US follow?

History says yes.
2/7

Unfortunately, the US had another big day in cases yesterday. It was the second highest in the last two months.

See the orange line (the 7-day average), it is now going straight up and almost 120k/day.
3/7

And it is not just cases, US hospitalizations have started to turn higher.

And so have deaths, although some of this could be inconsistent reporting around Thanksgiving.
Read 7 tweets
4 Dec
1/6

Screaming red Bloomberg headline this morning:

* BITCOIN PLUNGES MORE THAN 20% IN SATURDAY TRADING

As the chart below shows, BTC is still down about 11%.
If it closes here (midnight), this will be BTC's worst day since May and its fifth worst day in 2021.
2/6

BUT! ETH is only down 4.4% and it has seen 38 days worse than today.
3/6

BTC (red) has really lagged of late. It is way behind ETH (blue) and the overall market of coins (black).

In fact, BTC is now "only" up 26% YTD. The idea that BTC could lose money in 2021 is coming into the conversation.
Read 6 tweets

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