DHUnplugged #611: Then This Happens

Stocks blasted, then loved. Markets have no memory.

Car loans 6, 7 years? Fear is palpable.

What happens when everyone is on one side of the ship?

PLUS we are now on Spotify and Amazon Music/Podcasts!

Click HERE for Show Notes and Links

DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.

Love the Show?

Then how about a Donation?

Follow John C. Dvorak on Twitter

Follow Andrew Horowitz on Twitter

Warm Up

- Kaboom - 0.75% loved then hated!

- Markets seem to move one day up and one day down

- Oil getting sold - China in Spotlight again.

- Animation Banned

- Cost of paying for a new car - Watchout!

- A little Mahi fishing this weekend..

Market Update

- Down 6-10% last 5 days (US Markets)

- Debate rages about

- USD Up, Oil Down, Rates Up, Stocks - who knows

-  Big day Tuesday - Light volume, but BIG moves on indices - best in a while. Energy and Financial Lead

- No direction - oversold after last week - will it last?

Fear - You can smell it...

- Downgrades stsarting, everyone on the bear train.

- Remember what they said when everyone on the Bull train?

- When all on one side of the ship.... This happens..

How Bad Is It?

Wealth Destrucion

Coins

- And, the joke is on who?

- are HODL'rs Bagholders?

- Weekend action was nuts - Bitcoin under $18,000

- Looked like panic in light of Celsius and other worries.

BAD COINS

ALT-Energy

- Europe's biggest Russian gas buyers were racing to find alternative fuel supplies and even looking at burning more coal to cope with reduced gas flows from Russia on Monday that threaten an energy crisis in winter if stores are not refilled.

- The Benchmark Dutch front-month gas contract was trading at about 127 euros per megawatt hour on Monday, up more than 50% since the start of 2022.

- What were they thinking?

META

- Stock price near the pandemic low

- Zuck seen in photo of new metavers /VR headset (looks like old black dive mask)

SCUBA DIVING ZUCK?

Home / Housing

- Lennar Corp today became the first major U.S. homebuilder to flag a slowdown in demand for new homes as red-hot prices and surging interest rates force many buyers to rethink purchases.

- Any forecast at this point would amount to "guessing", Lennar said, even as it maintained its home delivery expectations for the full year at about 68,000 homes.

- For the second quarter, however, the higher home prices and demand helped Lennar report a profit of $1.32 billion, or $4.49 per share, beating analysts' expectations of $3.96 per share

And Now This

- Treasury Sec. Janet Yellen said that she anticipates the “economy to slow” during a Sunday morning interview on “This Week.”

- “Well, I expect the economy to slow. It’s been growing at a very rapid rate as the labor market has recovered, and we’ve reached full employment, it’s natural now that we expect to transition to steady and stable growth. But I don’t think a recession is at all inevitable.”

Even More Yellen:|

- U.S. Treasury Secretary Janet Yellen said some tariffs on China inherited from the administration of former President Donald Trump made "no strategic sense" and added that President Joe Biden was reviewing them as a way to bring down inflation.

COVID - China

- The world's biggest gambling hub Macau began its second day of mass COVID-19 testing on Monday after dozens of locally transmitted cases were discovered over the weekend, with most businesses shut but casinos remaining open.

- Most residents are asked to stay home, restaurants will be shut for dine-in and border restrictions have been tightened, meaning casino revenue is likely to be close to zero for at least a week and likely the coming weeks

- BUT, Casinos NOT CLOSED

Racism in the MetaVerse (CNBC Article)

- The tech industry has spent a decade publicly reckoning with its diversity problem. Still, Black and Hispanic workers hold just 7% and 8% of computer worker roles in the U.