Yesterday, we got the same question from an existing client and a prospective client. They both wanted to know if we were taking off our market short. We’ve been publicly short the S&P 500 (ticker: SPY) and the NASDAQ (ticker: QQQ) since the first week of January. It’s been our most profitable position this year … Read more
Want to know what oil stocks we’re buying and why? This video explains it all:
Overview: Today the US Bureau of Labor Statistics released the April Consumer Price Index (CPI) of 8.3%. This is above expectations of 8.1% and below last month’s 8.5%. Let’s discuss what this means. First, as we pointed out in this post, the CPI doesn’t reflect objective reality. It’s a number made up by the government … Read more
Introduction: We’ve been writing about inflation and the destruction of value in the US Dollar since November last year. However, when we talk to other market professionals, they comment on the strength of the Dollar. How is this possible? Can we have a strong Dollar and a weak Dollar at the same time? Who’s right … Read more
Just posted a lengthy description on inflation on Twitter and thought I’d copy it here so it’s easier for you to find: Last night a client asked me if inflation has peaked. Great question. I think no, but let’s start on the other side. Used auto prices up 40% last year were a huge contributor … Read more
Today, the Federal Reserve raised interest rates by 50bp (half a percentage point), the largest increase since 2000. They also laid out plans to start slowly unwinding the enormous $9 trillion balance sheet the institution is carrying. We first highlighted the danger that understated and rising inflation posed back in November while the Fed was … Read more
Curo Group (ticker: CURO) announced a strong first quarter after the close. Revenue of $290MM was up 48% and beat analyst estimates of $274MM. Adjusted earnings of $.15 also beat expectations by $.03. Like Enova International (ticker: ENVA), Curo is regrowing the loan book after a lack of economic activity caused by Covid shutdowns reduced … Read more
Two quarters ago, terrible results from education company, Chegg (ticker: CHGG) caused a huge drop in Coursera (ticker: COUR) stock. We wrote about the fact that these companies are in two different businesses, and that Chegg is regarded as a “cheating site”. At the time, Chegg complained that fewer people were entering college and those … Read more
