Eye On The Market
Interest rate pretzels and the Zoom shock on real estate

Interest rate pretzels and the Zoom shock on real estate

March 15, 2021

If long-term US interest rates stay below 2%, that’s a great sign for equity investors. But if they don’t… it’s amazing to see the pretzels that people contort into to convince themselves that rising rates are not a problem for equities. Also: an early look at the Zoom shock on commercial and residential real estate, and the diverging COVID trends in the US vs Europe.

Very short stories

Very short stories

February 18, 2021

Short stories on the global recovery, plummeting COVID infections, Larry Summers & the bond market, SPAC sponsors, renewable energy, the Texas power outage and the battle for the Republican Party.

Hydraulic Spacking

Hydraulic Spacking

February 8, 2021

In this month’s note, we look first at the SPAC capital raising boom. Our main focus: returns to date for SPAC sponsors and investors, and the large wealth transfers taking place among SPAC participants. Second topic: Biden’s early stage energy policies (ban on new oil & gas leases on Federal lands, Keystone XL pipeline termination and conversion of Federal fleet to EVs) will probably end up increasing US oil & gas imports more than they reduce emissions.

Fear of Flying

Fear of Flying

January 19, 2021

Equity markets are flying. So is COVID. So are corporate reactions to Congressional objectors.

Outlook 2021: The Hazmat Recovery

Outlook 2021: The Hazmat Recovery

January 1, 2021

Michael Cembalest’s views on what will drive markets and the economy in 2021, as well as the challenges we face that stimulus and vaccines can’t solve.

Holiday Eye on the Market: The Winter of Our Discontent

Holiday Eye on the Market: The Winter of Our Discontent

December 14, 2020

The belief in election illegitimacy is spreading faster than COVID. With field reporting from Alexander Fleming, Rutherford B Hayes, Richard III, Bob Newhart and the Attorney General of Ohio.

The Armageddonists, Revisited

The Armageddonists, Revisited

November 18, 2020

The Armageddonists were not rescued from underperformance purgatory by COVID, and markets are at all-time highs again with prospects for further gains in 2021.   However, I can think of something that could rescue them, at least temporarily: the risk of electoral illegitimacy and Constitutional mayhem on January 6th.

Quiet Flows the Don

Quiet Flows the Don

November 9, 2020

For the first time in 100 years, a challenger unseated an incumbent President at a time of strong economic and market tailwinds. However, the election delivered a clearer referendum on the President himself than on policy issues dividing Democrats and Republicans; it looks like divided government may remain. So, in this week’s Eye on the Market, a (possibly) divided government investor playbook. To conclude, comments on this morning’s Pfizer vaccine news and the road to herd immunity (approval, distribution and acceptance). 

Buckle Up

Buckle Up

October 13, 2020

The problem with states that do not allow pre-election processing of absentee ballots; a COVID Rorschach test; Trump and Biden deficit explosions, equity market impacts and trends that are being priced in as Democratic Sweep odds rise; Vaccine timing & virus-sensitive businesses.

Election 2020 - Praying for Time

Election 2020 - Praying for Time

September 30, 2020

The election as referendum on America: how well does the “system” work, and for whom?