Sparrow Capital

M&A Analyst & Day Trader

[Sparrow Capital @idontoverpay]

Inflation Chills Out, Nvidia Surpasses Google, & China Rebounds From Lockdowns

Read my June Newsletter for free here:
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[Lance Breitstein 🇺🇸🌎 @TheOneLanceB]

My suspicion is that removal of the PDT rule didn’t meaningfully change the dollar value of market participants trading micro caps.

My suspicions is that the removal of the PDT rule changed the EXPECTATIONS of market participants as to what price action COULD happen.

And that change in expectations and imagination of market participants is what is leading to these moves.

[Yogi @Houseofyogi]

Unrealized gains tax for Gen-Z:

You buy a Pokémon card for $50.

Someone offers you $500 for it. You say no. You love that card. You're keeping it.

The government says: "Cool, but that card is worth $500 now. You owe us $100 in taxes."
You: "…I didn't sell it."

Government: "Don't care. Pay up."

You don't have $100 lying around. So you're forced to sell the card you love just to pay a tax on money you never received.

Next month? That card drops back to $50.

Your card is gone. Your money is gone. And the government shrugs.

That's a wealth tax on unrealized gains. They don't pay you back the tax...

Now picture this.

Your mom calls you crying. She has to sell the house she raised you in. Not because she can't afford it. She's lived there 30 years. It's paid off.

But some website says it's worth more now and the government says she owes $15,000 she doesn't have.

So she sells your childhood home. The kitchen where she made you breakfast. The doorframe where she marked your height every birthday.

Gone.

To pay a tax on money that was never real.

Now picture the opposite.

Your dad put everything into his small business. For 20 years he built it from nothing. One year the business is "valued" at $2 million on paper. He owes a massive tax bill. He empties his savings. Sells his truck. Borrows money. Pays it.

Next year the market crashes. His business is worth $200,000.

He lost everything to pay a tax on a number that doesn't exist anymore.

Does the government give him his money back?
No.

Does the government give him his truck back?
No.

Does the government care?
No.

They sold this idea as "taxing billionaires." But billionaires have armies of lawyers, offshore accounts, and trusts. They'll be fine.

You know who won't be fine? Your mom. Your dad. Your neighbor with a small business. The farmer down the road who's had the same land for four generations and now has to sell it because dirt got expensive.

You're not taxing wealth. You're taxing people for owning things.

It's like getting a parking ticket for a car you might drive somewhere someday.

They want you to own nothing and be happy. To fund the fraud, waste and abuse of the welfare state they created.

There is enough money. More tax isn't needed. It's all a lie. But you've been gaslit into believing this is a rich vs poor debate.

I hope you understand what's at stake.

[Sparrow Capital @idontoverpay]

Uncertainty is to freedom what certainty is to control.

[Sean Linehan @seanlinehan]

Imagine you own a large apartment complex.

France says, "It is a legal requirement to put microphones in every room and let us listen."

You say, "No, people should be able to have private conversations."

They arrest you.

The digital equivalent just happened to Pavel Durov.

[unusual_whales @unusual_whales]

Canadians now pay more in taxes than food, housing and clothing combined, per the Fraser Institute.

[GURGAVIN @gurgavin]

🇺🇸 CPI ESTIMATES FOR TOMORROW

TD 3.3%

GOLDMAN SACHS 3.4%
JP MORGAN 3.4%
BMO 3.4%
BANK OF AMERICA 3.4%
BARCLAYS 3.4%
CITI 3.4%
MORGAN STANLEY 3.4%
HSBC 3.4%
UBS 3.4%
CITADEL 3.4%
WELLS FARGO 3.4%

SCOTIABANK 3.5%

MEDIAN 3.4%

[The Kobeissi Letter @KobeissiLetter]

The US government is spending as if we are in a crisis:

US government expenditures as % of GDP just hit 43%, matching levels seen during the 2008 Financial Crisis.

To put this into perspective, spending as a % of GDP is just 1% below World War 2 levels.

Even at the peak of World War 1, US government spending as a % of GDP was 20 percentage points LOWER.

Meanwhile, the Fed continues to call for a soft landing and economic data is "strong."

This is a crisis.

[The Kobeissi Letter @KobeissiLetter]

This is incredible:

We have now had over 320 trading days since the S&P 500 has had a 2% down day.

This is the longest streak since 2016-2018 when the index recorded 351 days without a 2%+ drop.

Furthermore, the S&P 500 has posted 26 new all-time highs this year so far.

The index is up ~12% year-to-date and nearly 30% since October 2023 low.

The S&P 500 has added over $10 TRILLION in market cap over just 8 months.

Is this the most resilient market in history?

[Martin Pelletier @MPelletierCIO]

Did you know the top 10 per cent of Canadians or about 2.93 million individuals, had an average income of $190,000 and paid 54.4 per cent of the total tax in this country?

Now consider this. The minimum income required to qualify to buy the average house in this country is $200,000. Think about that.

And now with the latest Trudeau tax changes he is asking them to pay a bit more.

Good piece by @KimGCMoody https://t.co/FbVwDyfD9K

[Sparrow Capital @idontoverpay]

Supply Shocks Reflate Japan, Boomers Become Spenders, & Bulls Conduct Copper

Read my May 2024 Newsletter on Substack:
https://t.co/y3YRgXuhAw

[Sparrow Capital @idontoverpay]

How very “decentralized” $BTC

[M.B. @741trey]

EFFECTIVE TUESDAY, DTC TO ASSIGN 100% HAIRCUT TO ALL CRYPTOCURRENCY INVESTMENTS⚠️

FIRMS WILL NO LONGER BE ABLE TO UTILIZE CRYPTO AS COLLATERAL, INCLUDING ETFS AND OTHER SPOT PRODUCTS.

[Sparrow Capital @idontoverpay]

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[Sparrow Capital @idontoverpay]

Ignoring COVID-19 expansion, the current P/E multiple of the S&P 500 reflects fairly optimistic expectations as we enter Q2 earnings season $SPY

[Sparrow Capital @idontoverpay]

After consecutive down weeks, it seems we are in the midst of a well-overdue pullback. The market tends to correct ~10% in a normal bull market, which would take us down to about 4700 on the S&P 500 $SPY

[Sparrow Capital @idontoverpay]

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BETTER THAN GOLDILOCKS
April 1, 2024

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