Meritocracy Capital

[Meritocracy Capital @MeritocracyCP]

Is this the longest period where #ValueInvesting trailed the #speculative or #Growth factor? Looking at 3-year trailing returns, #Value trailed growth longer during the Nifty Fifty #Bubble @tracyalloway @TheStalwart @MebFaber @hussmanjp @jessefelder @nirkaissar @TheBubbleBubble

[Meritocracy Capital @MeritocracyCP]

Seriously, does debt, either in the emerging or developed markets, matter anymore in a world of omnipotent central bankers? https://t.co/JhXQfAvGQy

[Meritocracy Capital @MeritocracyCP]

Markets 🤷🏻‍♂️ https://t.co/3zeVDJn93f

[Meritocracy Capital @MeritocracyCP]

🧐

[Meritocracy Capital @MeritocracyCP]

How are baby boomers supposed to retire? 🤷🏻‍♂️ https://t.co/VH3zhgzQef

[Meritocracy Capital @MeritocracyCP]

Say it ain't so! @EYnews challenges the accounting industry’s longstanding assertion that its job is not to seek out malpractice 👇 https://t.co/n0YDWgDgtG #wirecard @PwC @Deloitte @KPMG

[Meritocracy Capital @MeritocracyCP]

According to surveys done by @nielsen @Style_Sage @KelleyBlueBook @BrewersAssoc, your experience of rising inflation is real despite the headlines you see about disinflation or deflation 👇🏼 https://t.co/zFetywDmI1

[Meritocracy Capital @MeritocracyCP]

I wonder what @hussmanjp would say about how the VIX has risen to a level higher than during the peak of the Dotcom bubble era

[zerohedge @zerohedge]

And here's Goldman

[Meritocracy Capital @MeritocracyCP]

Given QE (infinity) supports financial assets, it’s not surprising that “Financial Activities” which includes financial services, insurance, and real estate, is the only industry to improve in August 2020, in @Paychex’s Small Jobs Business Index 👇🏼

[Meritocracy Capital @MeritocracyCP]

Interesting times ahead for commercial real estate in the U.S.

[Meritocracy Capital @MeritocracyCP]

Despite the massive surge in #M2 money supply, it would appear people are very inclined to save it versus spending it 👇🏼

[Meritocracy Capital @MeritocracyCP]

🤦🏻‍♂️

[Meritocracy Capital @MeritocracyCP]

How much further could this can be kicked down the road? #creditcards #credittightening

[Meritocracy Capital @MeritocracyCP]

Looks like companies, both junk and investment grade ones, already highly leveraged before the pandemic, are borrowing their way out of this recession 👇🏼 https://t.co/mIzfaeoh0X

[Meritocracy Capital @MeritocracyCP]

Even when outliers, like FANG stocks, are excluded, the valuation of big cap US stocks, as measured by the forward P/E of the median S&P 500 stock, is the highest in 40 years 🤦🏻‍♂️ https://t.co/8QNGDA6wDv

[Meritocracy Capital @MeritocracyCP]

After studying the research of @scientificecon, I find myself feeling deceived by my monetary economics professors, if you don’t know what I’m writing about, then check out this paper from the BoE about how money is created esstentially via #fairydust👇🏼 https://t.co/jLkrFdcYiP

[Meritocracy Capital @MeritocracyCP]

A spike in lending normally precedes recessions, presumably to counteract the pending recession, but . . .

[Julien Bittel, CFA @BittelJulien]

The US credit cycle is mature, so demand for C&I loans is slowing again. A final spike in C&I loans YoY has been very common heading into recession. Lending standards for C&I loans are now as tight as they were during GFC, implying a significant slowdown in C&I loan growth ahead.

[Meritocracy Capital @MeritocracyCP]

Geez, can the Fed finally raise rates? It would appear lower real interest rates are highly correlated with more zombie companies 👇🏼

[Liz Ann Sonders @LizAnnSonders]

15.1% (or 548) of publicly-traded U.S. companies now considered zombies, highest on record going back to early 1990s (10-year yield falling below -100bps may have been breaking point) @DataArbor @Bloomberg

[Meritocracy Capital @MeritocracyCP]

Professor Edward Altman estimated that the past trend of credit rating inflation in the face of COVID means that up to a third (1/3) of all corporate bonds in the BBB investment grade category could fall to junk status #BBBcliff . . . https://t.co/rKHcrZjtQv

[Meritocracy Capital @MeritocracyCP]

The music has stopped to say the least, all that corporate leverage in recent years is now forcing companies to cut costs permanently 👇🏼 https://t.co/UtL2M1mzIK

[Meritocracy Capital @MeritocracyCP]

Trick question: where does Tesla rank amongst the top three (3) EV automakers in Germany? @wolfofwolfst