1/5

Narrative is US cases will peak any day following South Africa pattern.

Keep in mind:

* South Africa is only 30% vaxxed (US 63%)
* It's young with few restrictions
* So, everyone "breathed on each other" cases went up 100x in 30 days and then peaked.
2/5

Why isn't Europe a better model for the US?

They are trying to prevent spread with restrictions/lockdowns (Dutch). So, they are dragging it out and made another new high yesterday.

EU is not willing to go 100x in 30 days like SA, so they are taking a longer time to peak.
3/5
If the US was indeed following South Africa and going to peak any day, our 7-day positive avg would be about 3M now, not ~600k.

We are trying to slow it down, and it is working!! EU leads the US by 6 weeks. If the EU peaks today, the US peaks in 2H of Feb at the earliest.
4/5

Is the EU/US just too big (population) to peak without the world peaking?

So far, the world is not peaking
5/5

My interest is economic, when is the massive loss of workdays going to peak.

How massive? In the last 10 days nearly 2.8% of the US workforce tested positive and it most likely out.

This will contribute to lost production pushing up prices (inflation). See the airlines.

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More from @biancoresearch

5 Jan
1/8

Nothing the Fed said today should have been a surprise.

The problem was the market just did not want to believe it until the minutes came out.

Now it hit them like a brick to the face.

A thread to explain

2/8

The orange line is the probability of a March hike. It has been above 50% since December 21, over 2 weeks now.

The blue line is a June rate hike. That has been priced in since late-Oct.

The Fed minutes should not have been a surprised, it's been priced in for some time.
3/8

For a while I've talked about the disconnect between what the market has priced in and what the consensus says will happen. It is rare the market pricing is NOT the consensus view.
Read 8 tweets
5 Jan
1/3

Just shy of 5 million Americans have tested positive in the last 10 days. This is 2.50% of the workforce.
2/3

Anecdotally ... companies are so confused by the CDC, and so scared by the liability of sick employees returning too fast, that they are ignoring the constantly shifting CDC/Fauci advice and requiring a 10-day quarantine followed by a negative test to return to work.
3/3

That is assuming one can even get a test in the first place.

So, yes, this is becoming a huge drag on production with this much of the workforce on "injured reserve."

Demand holding in, production lagging from a thinning workforce = more inflation.
Read 4 tweets
3 Jan
1/5

In 2021, the SPX beat the DJIA, NDX. Nasdaq Comp, Russell 1000, 2000, 3000.

For the SPX to be #1 in this group is rare, even more rare when it is not a down year.

Why?

A thread with some ideas

@LynAldenContact @ritholtz
2/5

Let start with a truism ... the "stock market" is really one thing, SPY.

Stock picking is something that we talk about on twitter and only those that underperform actually do.

The more one picks stocks, the worse they underperform. detailed here

spglobal.com/spdji/en/docum…
3/5

And there is only one vehicle to invest in the, the index ETF, which really means SPY (or its forks).

This is chart of all ETF flows, but it is really SPY and its forks.

All this money rams the index higher. Not in the index? You are way behind.

@RobinWigg
Read 5 tweets
3 Jan
1/4

Interesting returns reacords in 2021.
A thread to detail.

The Bloomberg Barclays U.S. Treasury Index returned -2.32% in 2021, which ranks as the fifth worst year on record (data goes back to 1973).

@ritholtz
2/4

Energy stocks experienced their best year on record. The S&P Energy Index returned 54.64%, more than doubling the returns of all but the financials and info tech sectors.
3/4

Whether calculating returns in U.S. dollars or local currency, U.S. equities topped almost all other developed countries in 2021. In dollar currency terms, the MSCI U.S. Index outpaced the MSCI World Ex-U.S. Index by almost 14% last year.
Read 4 tweets
3 Jan
1/8

Yes, the stock market rally has been very narrow. And yes, since the last stimulus check went out/inflation surged (March 15), inflation has beaten nearly all stocks.

Yes, this is worrisome, and "muddies" the signal of a strong economy.

A thread to explain
@ritholtz
2/8

97% of stocks were >200d MA in mid-April. While the overall SPX climbed and stayed well above its own 200d MA, the pct of stocks above their 200d MA steadily declined.

This is a sign that the rally through most of the year was being led by fewer and fewer stocks.
3/8

The following chart breaks the S&P 500 into ten deciles by mkt cap starting on March 15 (Last stimmy check, inflation takes off).

The 10th decile (largest), provided the best returns over this period. The smallest (decile 1) actually lost money the last 9 1/2 months.
Read 8 tweets
29 Dec 21
1/4

Incredible admission by the CDC today on the devastation they inflicted on the country.

2/4

Who did this hurt the last 21-months?

Not the "wealthy" working from home chortling on twitter about their stock portfolio rocketing higher.

It was the "poor," the 40% of the country that rents and has less than $1,000 in savings, that was devastated by this policy.
3/4

Meanwhile, in other news, economists still cannot figure out why consumer confidence is at a 10-year low, and still worse than the April 2020 lockdown readings.
Read 4 tweets

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