Europe is not the hot investment ticket.
The markets like all the bad news - layoffs, weak economics.
A big trade in 2022 pays off - billions and billions.
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- Mondays and Fridays - Let's just invest on those days.
- AH and China Covid Update
- Biggest Trade EVA
- Firings/layoffs/staff reductions the new "good news"
- Getting the feeling that we are all obsolete - layoffs and AI
Market Update
- Quick Check - Big action, not much change. Markets sit about where there were last week this time
- Debt Ceiling is the next screw up for this administration - will push an pull (for no reason)
- Activists are getting busy - Elliot in on a big name
- Europe in play again - All of a sudden
CTP STOCK?
China - COVID UPDATE
- The possibility of a big COVID-19 rebound in China over the next two or three months is remote as 80% of people have been infected, a prominent government scientist said on Saturday.
- Do we have any working heories why they just gave up on COVID lockdowns?
Europe - Target prices raised
- Warmer temperatures and well-filled gas storage facilities mean there's less concern about power shortages and sky-high energy bills.
- JPMorgan has raised its forecast for euro zone first-quarter economic growth to 1% from a contraction of 0.5%
- Goldman upgrades as well
- $ net inflows to European equity funds last week - first time in a year
- In terms of valuations, European blue-chips are trading at a multiple of around 13, compared with a ratio of around 20 for the S&P 500
- Note: H&C has been continuing to add to non-US exposure for portfolios
EuroStocks
Euro and Gas Prices
Growth in EU
Big Play
- Ken Griffin’s Citadel churned out a record $16 billion in profit for clients last year, outperforming the rest of the industry and one of history’s most successful financial plays.
- Citadel’s gain was the largest annual return for a hedge fund manager, surpassing the $15 billion that John Paulson generated in 2007 on his bet against subprime mortgages.
Activists at the Gate
- Salesforce shares gained more than 5% premarket Monday on news that activist investor Elliott Management has reportedly taken a multibillion-dollar stake in the cloud-based software giant.
- Closed up 3%
- If they are successful they will look for more "efficiencies" (job cuts) and potentially shedding low margin business sectors (Slack)
Regulators at the gate
- The U.S. Department of Justice and several states filed a lawsuit against Google alleging that it illegally monopolized the market
for online ads through years of self-dealing, anticompetitive acquisitions, and forcing businesses to use the products and services that
it offers. The lawsuit could lead to a breakup of Google’s advertising business. Matt Kent, competition policy advocate for Public Citizen,
released the following statement:
- - “Nowhere is Big Tech’s monopoly power more apparent than in Google’s domination of the digital advertising market. One company cannot be permitted to control every layer of the market that, for better or worse, is the lifeblood of online commerce and our digital lives. The Justice Department is continuing its strong trend under AAG Kanter of taking on monopolists rather than negotiating with them.”
Here is the Green Light for Firing
- Wayfair — Recent news of layoffs and also reality of negative profits (aka losses) and poor financials... BUT
- The online retailer jumped more than 26% after being double upgraded to overweight from underweight by JPMorgan.
- The Wall Street firm cited improving market share trends and a better grasp on spending from management.
The markets like all the bad news - layoffs, weak economics.
A big trade in 2022 pays off - billions and billions.
PLUS we are now on Spotify and Amazon Music/Podcasts!
Click HERE for Show Notes and Links
DHUnplugged is now streaming live - with listener chat. Click on link on the right sidebar.
Love the Show? Then how about a Donation?
Follow John C. Dvorak on Twitter
Follow Andrew Horowitz on Twitter
Warm Up
- Mondays and Fridays - Let's just invest on those days.
- AH and China Covid Update
- Biggest Trade EVA
- Firings/layoffs/staff reductions the new "good news"
- Getting the feeling that we are all obsolete - layoffs and AI
Market Update
- Quick Check - Big action, not much change. Markets sit about where there were last week this time
- Debt Ceiling is the next screw up for this administration - will push an pull (for no reason)
- Activists are getting busy - Elliot in on a big name
- Europe in play again - All of a sudden
CTP STOCK?
China - COVID UPDATE
- The possibility of a big COVID-19 rebound in China over the next two or three months is remote as 80% of people have been infected, a prominent government scientist said on Saturday.
- Do we have any working heories why they just gave up on COVID lockdowns?
Europe - Target prices raised
- Warmer temperatures and well-filled gas storage facilities mean there's less concern about power shortages and sky-high energy bills.
- JPMorgan has raised its forecast for euro zone first-quarter economic growth to 1% from a contraction of 0.5%
- Goldman upgrades as well
- $ net inflows to European equity funds last week - first time in a year
- In terms of valuations, European blue-chips are trading at a multiple of around 13, compared with a ratio of around 20 for the S&P 500
- Note: H&C has been continuing to add to non-US exposure for portfolios
EuroStocks
Euro and Gas Prices
Growth in EU
Big Play
- Ken Griffin’s Citadel churned out a record $16 billion in profit for clients last year, outperforming the rest of the industry and one of history’s most successful financial plays.
- Citadel’s gain was the largest annual return for a hedge fund manager, surpassing the $15 billion that John Paulson generated in 2007 on his bet against subprime mortgages.
Activists at the Gate
- Salesforce shares gained more than 5% premarket Monday on news that activist investor Elliott Management has reportedly taken a multibillion-dollar stake in the cloud-based software giant.
- Closed up 3%
- If they are successful they will look for more "efficiencies" (job cuts) and potentially shedding low margin business sectors (Slack)
Regulators at the gate
- The U.S. Department of Justice and several states filed a lawsuit against Google alleging that it illegally monopolized the market
for online ads through years of self-dealing, anticompetitive acquisitions, and forcing businesses to use the products and services that
it offers. The lawsuit could lead to a breakup of Google’s advertising business. Matt Kent, competition policy advocate for Public Citizen,
released the following statement:
- - “Nowhere is Big Tech’s monopoly power more apparent than in Google’s domination of the digital advertising market. One company cannot be permitted to control every layer of the market that, for better or worse, is the lifeblood of online commerce and our digital lives. The Justice Department is continuing its strong trend under AAG Kanter of taking on monopolists rather than negotiating with them.”
Here is the Green Light for Firing
- Wayfair — Recent news of layoffs and also reality of negative profits (aka losses) and poor financials... BUT
- The online retailer jumped more than 26% after being double upgraded to overweight from underweight by JPMorgan.
- The Wall Street firm cited improving market share trends and a better grasp on spending from management.
Activity