Federal Reserve Chair Jerome Powell testifies before a Senate Banking Committee hearing on the CARES Act Oversight at the Senate Office Building on Tuesday, Nov. 30, 2021 in Washington, DC.
Kent Nishimura | Los Angeles Times | Getty Images
What I am looking at March 16, 2022
- Federal Reserve meeting today ... interest-rate hike of 25 basis points expected ... did market steal upside already with this move? Most likely. Still no break in inflation in any commodity other than the topping out of oil for now.
- Will multiple contraction run its course with Fed tightening? The stocks of companies that are selling at a multiple of sales that do not have positive cash flow will get some lift. But they have to be sold because many need money and there is none to be had in this market for this kind of stock.
- Second day rally led by China and the decision to move stocks up because it was such a hard decline. Anyone who is doing anything but trading these stocks is crazy as the PRC is operating with a command market that is totally at the whim of President Xi.
- John Ellis in News Items (on Substack) presents the nightmare scenario of tactical nukes that can be launched with pinpoint precision by Russian leader Vladimir Putin.
- Micron (MU) upgraded to buy from sell at Bernstein. Bellwether even as it is largely commodity …Based on DRAM cycle bottoming in next two quarters. Wishful call but well timed. China hasn't made gains even as they have copied Micron.
- Bausch Health (BHC) gives bullish talk at Barclays Global Healthcare Conference. While no one cares it was incredible how much momentum this company has — especially Bausch products including cataract essentials that have been stalled because of Covid-19.
- American Express (AXP) analyst meeting today ... should be upbeat as consumers are spending like crazy.
- Nike