DHUnplugged #607: A Total Shitshow

What are they thinking? Drying up liquidity into a time of war, pandemic and a slowing economic backdrop - dumb.

Markets worried that the latest pre-announcement are more than isolated. Retail-apocalypse.

A coupe of limericks...

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Warm Up

- Markets whacked - everyone of the experts talking about need for capitulation (dumb)

- Fed continues on hawkish path even though economy crumbling - STUPID, QT and Rate Hikes will break versus slow

- Money talks - Environment Loses again?

- Davos Confab - Glum

- Bottom line - this is a total shitshow - analysts, investors, Fed, governments - maybe from standardized testing?

- Two limerick submissions

- Let's talk Twitter

Market Update

- YTD lows and VIX at 30? (Shows that this may be localized - tech etc)

- SNAP breaks - Social media and advertising stocks hammered

- Yields backing up - market correlation back a bit to "normal"

- Huge outflows from bond ETFs/Funds - what does that mean?

- Retail-apocalypse  - wait until we discuss these inventory numbers....

10 Plauges - Getting us for past decades gluttony

- Covid

- Flurona

- MonkeyPox

- Nuclear War

- Supply Chain

- Inflation

- Hurricanes

- ?????

MonkeyPox Stocks? (Smallpox vaccine potential)

- SIGA

- EBS

More of the Monkey

- Belgium has become the first country to introduce a mandatory 21-day quarantine for monkeypox patients as cases of the disease

NUKE TALK AGAIN!

- China and Russia flew nuclear capable bombers over sea of Japan while President Biden was in Asia

- From FT - (paywall and reckless)

Hurricane Season

- "Forecasters at NOAA's Climate Prediction Center, a division of the National Weather Service, are predicting above-average hurricane activity this year — which would make it the seventh consecutive above-average hurricane season.

- NOAA's outlook for the 2022 Atlantic hurricane season, which extends from June 1 to November 30, predicts a 65% chance of an above-normal season, a 25% chance of a near-normal season and a 10% chance of a below-normal season.

- GENRAC generators (GNRC)

How About This Crap?

- The White House is considering waiving U.S. gasoline environmental rules aimed at reducing summertime smog, hoping the waiver will combat rising pump prices, according to three sources involved in the discussions.

- The White House has already lifted the requirement for summer sales of E15, a lower-price, high ethanol gasoline.

More on Valuations (First two week's of May - action was relentless)

- Microsoft has lost around $189 billion in value.

- Tesla's markdown registers at $199 billion, months after seeing its valuation fall below $1 trillion.

- Amazon's market capitalization has declined by $173 billion.

- Alphabet, Google's umbrella company, is worth $123 billion less than it was ending April

- Graphics card maker Nvidia's loss stands at $85 billion.

- And Facebook parent Meta Platforms has lost $70 billion in value.

Twitter

- Deal Dead?

- Trading below pre-take private offer (~$35.80)

- Carnage in social media space - this was one of those late night snacks or something?

- Without underlying bid - price would be ... $25?

- How can he buy now? CLEARLY lack of due diligence

- If he drops deal - TSLA back in play ?

Some Bogus Poll - but interesting (MagnifyMoney)

- Nearly 4 in 10 investors (38%) pulled money from the stock market in the past year due to current events. Of that group, 40% regret their decision. Gen Zers (67%), millennials (57%) and men (49%) were most likely to take out money.

- Two-thirds of Gen Z investors ages 18 to 25 (67%) and over half of millennial investors ages 26 to 41 (57%) took money out ...