Money

Berkshire is Buying What?

Berkshire is quietly buying one stock almost every single day. Nearly $600 million in just over two weeks. It's in the most hated corner of the market right now.  The stock is Lennar, one of America's biggest homebuilders. Since mid-September Berkshire bought about 7.5 million shares, almost all of it around $80.

 

By Idi Admin, ago

The Big Federal Reserve Print

The Fed is printing money to buy US Treasury bills… more than during Covid.

– Covid: ~320B
– Last 9 months: ~355B

Everyone is talking about the Fed hike… no one is talking about Warsh printing money Covid-style to buy UST bills.

At the same time, Bessent is issuing more UST bills to buy back US long-term debt.

In other words, the Treasury buyback is nothing else than QE in disguise.

We don't own enough hard assets for what's coming.

By Idi Admin, ago

Stealth Stock Market Crash

Compound248 @compound248

People often ask me whether I worry about how frothy the market is. I tell them, "Stocks have already crashed." Inside the market, there is a crash. That doesn't mean they can't crash more. But tons of well-known stocks are down 50, 70, or 90% from their highs. It is hard to see at the overall market level because, at the same time, some big companies have become giants, offsetting losses in the index. I'm not just talking about the SaaS massacre – stocks of many companies that are generally regarded as excellent businesses have been smashed, and almost nobody notices. I've never seen anything like it: the index is so strong, but so many quality constituents are so weak. From ATHs:

  • Nike: -84%
  • McDonalds: -31%
  • CarMax: -63%
  • PayPal: -83%
  • Pepsi: -34%
  • Disney: -50%
  • Dick's: -46%
  • Wendy's: -75%
  • Charter: -72%
  • T. Rowe Price: -52%
  • Campbell's: -71%
  • Constellation Software: -46%
  • Kraft Heinz: -70%
  • Fiserv: -80%
  • Home Depot: -35%
  • Hershey's: -40%
  • Alibaba: -65%
  • Otis: -35%
  • Lululemon: -80%
  • Rollins: -51%
  • Wingstop: -77%
  • Boeing: -55%
  • Lyft: -78%
  • The Trade Desk: -91%

Most of those are trading near multi-year lows. These were, and generally remain, large, "good" companies. Now go look at smaller, lower-quality companies, and you will see some crazy sh!t. There is carnage out there.

By Idi Admin, ago

The Great Depression of the 1930s was purposefully created

And they are most likely deep in the middle of doing it again.

….and then they send your children off to world war 3.

Better to starve than serve these types.

By Idi Admin, ago