Desperation
A dearth of flashy headlines obscured an otherwise interesting session in the US on Tuesday, as investors were reminded what "diversification desperation" feels like.
Treasurys were on their heels all day, pressured by looming long-end supply later this week and a relatively heavy IG slate, which saw 11 issuers price $18.4 billion in deals. When considered with Monday's offerings, IG issuance had already met projections for the full week.
Yields were cheaper by as much as 7bps, with the 10-yea
It would certainly endear Trump and the boys to the rich. I don’t think they even consider what the other 90% think.
Absolutely no reason for Pelosi and Shumer to cave to Meadows. Trump’s EOs are dead on arrival, and failure to strike a deal will be blamed on Trump and Meadows. No deal,Trump can kiss the Midwest — and the reelection — goodbye. Trump will spend the rest of his life fending off supoenas, and Meadows, evangelical no-nothing that he is, will end up selling used cars in North Carolina.
Trump and McConnell own the stimulus stumble. The details are probably lost on the average voter, but the Dem messaging has been so consistent for months that he or she probably realizes the Dems are trying to continue the $600/wk and other relief, and thus whatever is standing in the way must be a non-Dem.
So the question is, are the pandemic-pounded cyclicals under-owned enough that they can hold up – or just not get crushed – if the big tech and other mo/gro corrects?
And, of course, the real question is: what SP500 level forces a deal making in Congress?
I mean, I was looking at a small cap name, a growth stock but definitely not a household name, price down over 60% from pre pandemic levels, revenues still 50% below pre pandemic levels but improving monthly, plenty of cash and not burning cash even now, and just regaining past multiples on 2022 earnings implies 2-3X upside, basically if you think daily life returns to even an approximation of before, it’s a two-handed buy . . . and it’s been such for at least 3 months now . . . during which time buying it instead of AAPL or TSLA has been the Wrong Thing To Do.