Market Structure Insights
December 16, 2020
The Federal Reserve’s balance sheet is 185 times leveraged, and DoorDash’s market cap is $50 billion. I’m sure it’ll all work out. In some ways the Fed is easier to understand than DoorDash. It’s got $7.2 trillion of liabilities and $39 billion of capital. Who...
December 9, 2020
How does the stock market work? That’s what somebody was asking at the online forum for my professional association, NIRI. By the way, the NIRI Annual Conference is underway. I enjoyed yesterday’s sessions and seeing the faces of my colleagues in the virtual happy hour. ...
December 2, 2020
Are you 2.0? I know. You’re tired of clichés. Especially in a pandemic that birthed a lexicography – social distancing, mask-up, nonessential, emergency executive orders, comorbidity. After all that, you don’t want to hear you’re 1.0, not 2.0. On the other hand, I’m notorious for...
November 25, 2020
The stock market is high on tryptophan, hitting records. Right ahead of Thanksgiving, 2020 looks to deliver the best November in 30 years. We’re grateful! You don’t expect it in a pandemic . You’d think amid a plague we’d find bitcoin trading near $20,000. Oh,...
November 18, 2020
The most valuable thing is knowing what’s going on. The country is closing amid Covid cases. Simultaneously, the Shiller PE ratio of earnings in the S&P 500 is 33, a level exceeded in history only at the bursting of the Internet Bubble in 2000. What’s...
November 11, 2020
If electoral processes lack the drama to satisfy you, check the stock market. Intraday volatility has been averaging 4%. The pandemic has so desensitized us to gyrations that what once was appalling (volatility over 2%) is now a Sunday T-shirt. Who cares? Public companies, your...