Muted Day Sees Russel2k Outperform
Settles plus Gundlach
We made this an everyone post just to see what you miss when you don’t subscribe!
Alright, well it seems that the days trading was a bit muted but the Russell2k continues to shine and it was today’s top performer in our settlement sheet for the markets that Magnelibra covers. In fact the R2k is up some 7.6% so far this year:
The energy sector is also off to a good start this year after last years abysmal performance. Across the board sees Crude, RBOB and Natgas +9.6%, 9.8% and 7.2% respectively, so strength in the sector early on despite the economic slowdown that continues. Perhaps its all an inflation play, weaker dollar play. Speaking of, we took a peek at the US DXY and here is what we found:
The DXY has been sitting near this support band which stems as far back as 2004. We know the money printers are in over drive and that income inequality is sky high, in fact we saw a tweet today that stated, if you made $150k per day, since way back when Jesus was walking the earth, you still wouldn’t have more money than Bezos. Its pretty astounding actually to think of it that way. We are all for capitalism but honestly, at what point does it not even make sense? Starvation, poverty and extreme wealth, we need a better balance and not just at the poles, but a system with a more equitable distribution, something that levels the vitality of ones existence or ability to merely exist. The skew seems way off.
Anyway the dollar bears are everywhere and we can’t help but think that this band may prove resilient once again.
Also out today was GGundlach of Doubleline. Many long time readers know how we hold him in high regard in terms of his fundamental market and economic analysis. He is the EF Hutton of our time, damn I miss those commercials…
Anyway from Zhedge, Bloomberg highlighted a couple of points:
Asian equities are extremely disliked, something he called “unfounded.” Gundlach said he would put them high on his “like list” and finds them extremely attractive. Emerging markets have beaten the S&P 500 since June, partly because of a weaker dollar, and there may be more room to run there
Short-term bearish on the dollar. The dollar “should” be weak given the Federal Reserve’s pledge to hold interest rates near zero for years to come
Don’t count on foreigners to buy Treasuries. The non-U.S. share of purchases has been going down for years. He added that he worries who will buy them.
The dollar has fallen enough to make him believe commodities have room to run, he said. Investors should have 25% of their portfolios in some sort of real asset play, such as real estate or industrial commodities.
Neutral on Bitcoin at $23,000 and remains neutral on the fast-moving digital currency, just as he is on gold.
His stuff is always a must watch and must read!
Alright till tomorrow, lets keep it real, keep it fresh and please share and subscribe, don’t be cheap, you used to spend 50 cents a day on a newspaper for Godsakes…
Sorry we just call’em like we see’em.
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-Magnelibra Econemotions
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