Recapping The Week – Facebook Earnings, Trade Wars Comments, Yields

July 27, 2018

Chris Temple joins me to recap the markets and news events this week. We discuss the Facebook selloff but how it did not spook the overall markets. Also with a busy earnings week there were a number of companies expressing concerns about trade wars and how they will impact future growth. Finally yields continued to move up this week thanks in large part to some comments from the Bank of Japan.

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    Jul 27, 2018 27:48 AM

    I just love this chart and it’s gonna get better!

      Jul 27, 2018 27:42 AM

      I disagree with Mr. Temple.
      Certainly, if tariffs are imposed prices of imported goods are higher…..and thus less are bought. But does that not also imply that part of the goods that would have been imported are replaced by US supplied goods?
      Does this not imply increased corporate earnings?

      The question hinges on the relative percentages of imported versus US manufactured, etc., relative tariff imposition in US and abroad.

      My analsis overall is not that bad for the US, and highly positive for US government income.
      Also a general movement to free trade/zero tariff for many country pairs.

        Jul 27, 2018 27:31 AM

        There is some truth to what you are saying but not enough for a net-positive outcome overall.
        Remember that markets top when everything looks fine — that goes for all sectors.

          Jul 27, 2018 27:53 AM

          good over all countries, or good for US at expense of other countries?
          Time will tell.

          Given that at the start there is an imbalance in trade and tariffs, it is possible that a bigger share of a smaller pie could work out in US favor.

          Jul 27, 2018 27:23 PM

          I think consumers are starting to realize that China sells The US junk, maybe they are waking up to the truth. If you hit the American consumer hard enough in his pocketbook maybe this will help him to discover for himself the essential facts of a problem and to think it through. The Chinese have learned by being poor, Americans are being duped by a people whose mental processes are sharper than their own because they have had to live with nothing. DT

    Jul 27, 2018 27:07 AM
    Jul 27, 2018 27:19 AM

    +1 – Today’s featured sell-off is TWTR, off 19 % plus!

      Jul 27, 2018 27:21 AM

      This was in reply to Mathew’s post

      Jul 27, 2018 27:32 AM

      I love that one too!

      Jul 27, 2018 27:55 PM

      A more deserving pair of losers, I can’t conceive 🙂

        Jul 27, 2018 27:57 PM

        Except for maybe AMZN and GOOG, which both look set to poop the party as well :-))

    Jul 27, 2018 27:59 AM
    Jul 27, 2018 27:27 PM

    The consequence of LOW INTEREST RATES:

    NEW YORK (AP) — For many small businesses, the easiest thing to sell right now might be the business itself.

    Buyout activity is booming, and the prices being paid are at or near records for companies up to $50 million in value, brokers say. Many small-business owners are fielding more cold calls asking if their companies are for sale, and owners who do put their businesses on the market are often receiving multiple bids.

    “I’ve been doing this for 20 years, and I can say that if this isn’t the top market, it’s the top one or two in recent years,” said Scott Bushkie, principal at Cornerstone Business Services, a mergers-and-acquisition firm based in Wisconsin that works with lower middle market companies. “You’ve really got the stars all aligned.”

    Among those stars: Companies that want to grow may see an acquisition as the easiest way to get trained workers amid a tight labor market. Lower taxes and lighter regulation have improved sentiment. On top of all that is a generation of Baby Boomers looking to sell and retire.

    The market is so hot that Bushkie has heard some prospective buyers say they’re interested in a purchase, but they’re too busy at the moment with other acquisitions.

    Jul 27, 2018 27:31 PM

    Anglo American approves $5 billion #Copper project in #Peru
    Michael Allan McCrae | about 5 hours ago

    “First #production of copper is expected in 2022, ramping up to full production in 2023. During the first ten years of full production Quellaveco is expected to produce approximately 300,000 tonnes per year at a cash cost of $1.05 per pound of copper.”