Equities, HY Credit, and Macro. Political orphan. Views are my own, not investment advice.

Joined August 2022
GoodHouse retweeted
You also have a federal deficit that is pumping 6-7% of GDP into the private sector and corporate profits.
Lots of confusion over record highs for the S&P 500 despite elevated rates But this is simply a story of strong nominal growth. Activity is booming (especially thanks to AI capex), but prices also rising (also partly due to the same AI wave) xitter.cf/sonusvarghese/status/2…
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There is a significant portion of permabull investors who think the market rising over the past 5 years is solely due to earnings growth and that the national debt ballooning to $40T played no role in this earnings growth.
The resilience of the market (credit included) is attributable the massive amount of money printing. You can hold that on one hand while knowing there’s always a limit.
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MCD is a real estate stock. They raised prices on everything 4 fold since 2019 since their debt expenses skyrocketed after much of their short term maturity loans on their CRE had to be refinanced. It’s one of the classic examples of how servicing debt trickles down to the most vulnerable consumers and how keeping interest rates high and hiking will actually create more inflation for the consumer.
This is ABSOLUTELY wild. The reverse mirror image is so accurate it's almost scary. Very scary. The inverse of the 10yr yield is.... $MCD. What a sight.
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70% of non-interest bearing deposits in the U.S. banking system are commercial, I’m sure Muse and boomers dying will destroy the banking system
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AI investments are locked in the next few years. You don’t or can’t just stop the committed development of power and data centers. Maybe in the out years but nothing in pipeline for next few years slows. Inference demand keeps going up and to the right. Demand driven by increasing adoption as much or more as new models.
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GoodHouse retweeted
Joseph Wang
@josephwangSep 3
Guys this is why yields are so high - mystery solved!
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All central bankers doing monetary operations know they can't conduct a reserve drain without a prior reserve add- the CB has to credit accounts (spend first) before taxes can be paid/securities purchased as per MMT. Yet all mainstream economists have this sequence backwards.
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"If the 30-year must trade at 5.5% to clear, that isn’t a crisis. It is the market’s expectation of the average overnight interest rate set by the Fed for the next three decades.”
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I’ve been writing about inflation risk that comes from the *combination* of high interest rates and high debt for more than two decades. Via @RevHierophant
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GoodHouse retweeted
Earnings are going to be strong when fiscal deficits are large. That’s just basic macro accounting. When the fiscal deficit is ginormous, earnings are going to be extra robust. If you still think fiscal deficit deficits are bad for earnings and growth and that they’ll crowd out private sector investment, I mean, yeah, I loved the 80s too, but it’s well past time you mark your playbook to reality
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GoodHouse retweeted
I’m starting to believe the only reason the stock market crashed in 2000 was because Bill Clinton ran a budget surplus.
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In case you stopped paying attention to Ukraine/Russia details: Ukraine is now on a path to potentially win, not just end, the war, thanks to its ever-increasing drone and missile superiority across 3 areas: 1. On the front lines, it can now inflict ever-increasing record casualties on Russian troops and equipment with ever-decreasing casualties of its own 2. It has almost completely cut off Crimea from resupply, via the primary road through occupied Donbas, via the Kerch bridge, or via sea. There is almost no gasoline or diesel to be had in Crimea. Russian residents are panicking and leaving. Russia can no longer use Crimea as a staging or resupply point for the front-line war and may have to abandon it. 3. It is regularly launching successful long-range strikes into Russia, primarily at Russian refineries. Russia now has significant fuel shortages and, because it can't refine much of its own crude, is dumping more of it on the international market at as low as $40/bbl, then importing more refined products. The last few days showed a new significant step up in Ukraine's effectiveness. On Sunday night, Ukraine hit and at least partially disabled the Omsk refinery, which is (1) 2,500km from Ukraine (and the drones flew 3,000km to avoid air defenses), (2) the only remaining major refinery Ukraine hadn't yet hit, (3) Russia's largest, and (4) 10% of the total Russian refinery capacity. On Monday night, Ukraine hit 10 (10!!) fuel tanker ships bound for Crimea, as well as a dry bulk carrier ship and a military supply ship (probably carrying heavy ground equipment, ammunition, and vehicles).
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At this point don’t we have to assume that Iran is in on the grift…? It’s literally the same story leaked every Sunday afternoon.
First Squawk
@FirstSquawkJun 28
U.S. AND IRAN AGREE TO HALT STRIKES, SET TO HOLD TALKS LATER THIS WEEK – AXIOS, CITING U.S. OFFICIALS
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$CCOI bond amendments are done: sec.gov/ix?doc=/Archives/edg…
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EVERYONE IN NYC IS SINGING EMPIRE STATE OF MIND
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Amazon should buy Forward Air
Replying to @FreightAlley
You're saying acquisition coming soon?
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Realizing SpaceX alone might be worth more than the entire US high yield market.
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GoodHouse retweeted
How you know it’s really good
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GoodHouse retweeted
The knicks saved the stock market
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This video will be engraved in Knicks fans’ heads for years
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