The Great Unwinding

[CptTrips]

You look at a company like MU, who beat earnings by 16 points, made a billion more in revenue than last years Q2, and hit all time record for earnings. It beat last Q by 45 points and Its down 40% for the year with a 5 forward PE. Market is broken.

Well, even good companies have had their valuation inflated artificially by Fed money printing over the last 10 years.  Tech in general tends to be interest rate sensitive.  Also, yes, there is just going to be a general malaise in all stocks until this collapse runs it's course.  Strong companies will survive and you can buy them again later at a cheaper price.

Also the market is forward looking.  It doesn't matter what you done in the past if the forward guidance doesn't look good.  Good company or not, they are probably going to be facing some intense headwinds over the next year.

https://www.barrons.com/articles/micron-technology-earnings-stock-51656612390

[CptTrips]

Psssttt....pro tip:  Crypto is the FUTURE!  Pass it on.

[Eagler]

As you stated all companies are with inflated values now due to irresponsible monetary policies for decades..

None are anywhere near real value..

As with gross manipulation of the numbers, like elsewhere now, the actual accurate numbers/evaluation are hard if not impossible to know

Eagler

[Eagler]

These up days in the market are doing nothing but extending the pain imo

Hope they go a full point next

Eagler

[CptTrips]

These up days in the market are doing nothing but extending the pain imo

Hope they go a full point next

Eagler

The market doesn't have a clue what direction to move. 

Earnings coming up last half of month.  Two big questions:  What was Q2 earnings like?  What is forward guidance like?

Everyone assumes  another 0.75 hike at the end of the month.

[Eagler]

9.1!!!!

All for a 1.25 rate increase this month but they don't have the gonads

The inverted curve was inverted futher...real good news there too 

Eagler

[CptTrips]

I think earning reports over the next two weeks and the FOMC meeting are going to make the remainder of the month interesting.

[CptTrips]

Canada CB just raised 100 bps.

https://financialpost.com/news/economy/bank-of-canada-hikes-interest-rate-100-basis-points

[CptTrips]

Mortgage rates nearly double just on the first 75 bps hike.  It would be amusing to see what happens with a 100 bps hike.  Real estate is a massive component of the economy.

A flood of new inventory started by builders during the peak is coming on line and no one wants it.
Record number of buyers are canceling contract leaving builders with more unwanted inventory.
Price cuts are starting as sellers are afraid they missed the boat. 
Flippers are going to get destroyed, but they deserve it.
MBS might go no-bid or have to be heavily discounted.

Car repos are exploding to historic levels.  Another canary in the coal mine.

[Eagler]

Higher rates just shakes out the bloat imo

There is a bunch of bloat to go if they are really going to correct their manipulation ...they won't though as that is depression time and they will reverse course and manipulate again b4 they go there

Eagler

[Chris79]

Canada CB just raised 100 bps.

https://financialpost.com/news/economy/bank-of-canada-hikes-interest-rate-100-basis-points

Also, no Canadian mortgages are fixed. The bank has has the privilege of raising the interest rates on your mortgage. So at the end of the term, the mortgage will have been paid in full. Canadian mortgages also have an amortization period, which determines the total length of your mortgage, but the mortgage will most likely have a number of shorter mortgage terms within the amortization period.
I imagine a watermelon storm is a brewing up north.