On today’s show we discuss:
- August employment report
- These temporary layoffs are starting to look permanent (Barron’s)
- Some jobs aren’t coming back (NYT)
- Spending is larger than the entire economy
- Could government end poverty?
- GMO on bonds
- Democracy has failed (if 60/40 continues to work)
- In defense of endowments
- SoftBank buying a lot of options
- Most people didn’t touch their retirement accounts in the first quarter
- Rents are falling in expensive cities
- Not commuting is putting money back in people’s pockets
- Billionaire budgets
- Don’t get a timeshare
- Airbnb is on fire
- Apple is bigger than the FTSE 100
- Tesla not being added to the S&P 500
The top 5 contributing stock in the S&P500 now account for 1,113bps of performance YTD!
This is like nothing we’ve seen before, especially as AAPL alone is >400bps of performance – that’s more than the ALL of the top 5 contributors combined in most years!! pic.twitter.com/lkxOaJ7tOH
— Michael Antonelli (@BullandBaird) September 2, 2020
That FT article (following @zerohedge) on Softbank suggests the fail whale bought "billions" of call options.
The real story is that Softbank is dwarfed by retail traders, who spent $34 BILLION in call premiums in a month.
Unless Softbank cuts its orders into 10-lots, that is. pic.twitter.com/zGAgf9WcTQ
— SentimenTrader (@sentimentrader) September 4, 2020
Ppl at the Fed were predicting unemployment at 30% in March
The fact that it's now under double-digit levels is wild
The government stopped a depression in its tracks
How could any sane politician not use these same tools in future downturns?
There's no going back now pic.twitter.com/Qw7D79FrlI
— Ben Carlson (@awealthofcs) September 4, 2020
Nor has their yield curve ever gone negative in the past 20 years. Japanese bonds have returned over 30% since initially crossing below 2% and Japanese stocks have had negative returns over the period…"
Ollllld post with some more links!https://t.co/UC5O3R2rp7
— Meb Faber (@MebFaber) September 4, 2020