Mad Hedge Hot Tips
May 28, 2019
The Five Most Important Things That Happened Today
(and what to do about them)
1) Bond Market Says the Recession is Already Here, with ten-year interest rates at 2.27%, a new 2019 low. German bunds hit negative -0.16%. JP Morgan CEO Jamie Diamond says the trade war could cause real damage to the US economy. Click here.
2) The Bear Market in Home Prices Continues, in March, with the Case Shiller CoreLogic National Home Price Index showing a 3.7% annual price gain, down 0.2%. Home price in San Francisco is posting negative numbers. When will those low-interest rates kick in? Click here.
3) US Capital Goods Fall Out of Bed, in April, down 0.9%, in another important pre-recession indicator. No company with sentient management wants to expand capacity ahead of an economic slowdown. Click here.
4) From Red State to Welfare State, and from farmer to ward of the state. The administration’s $16 billion bailout of the farm states won’t cover a fraction of the damage the trade war has done. Farmers are switching crops not to meet demand but to gain the maximum government payouts. Most would rather work for living and prefer free trade. Click here.
5) Heard at SALT. Decentralization is the next big trend in technology. To move out of Silicon Valley into the rest of the country, you only need a laptop and a broadband connection to start up a new company. Costs are cheaper, and staff is available. That’s what Mark Cuban told me.
Published today in the Mad Hedge Global Trading Dispatch and Mad Hedge Technology Letter:
SPECIAL MEMORIAL DAY ISSUE
(A TRIBUTE TO A TRUE VETERAN)
(MARKET OUTLOOK FOR THE WEEK AHEAD, OR HERE COMES THE HEAD AND SHOULDS TOP)
(CHINA’S RARE EARTH WEAPON)
(TSLA), (AAPL), (LMT), (BAESY), (RTN)