📑 Research Notes for 2022-02-21
This week, we look at "this time being different", a confluence of major macro imbalances in the U.S., record food prices, and the mysterious outage of Canadian Banks.
We conduct extensive investment research and share the most interesting content that we come across every week. Here is a curated list of this week’s top observations.
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This Time It's Different.
(MHFIN)
The Minksy Moment is defined as a sudden, major collapse of asset values that marks the end of the growth phase in a market cycle. On its surface, it's a boring, bland finance concept coined by Paul McCulley of PIMCO in 1998 to describe the Russian financial crisis. But before you click off this video and brush this off as a textbook econ lesson, the Minsky Moment could very likely become to defining term of a generation. A notion that potentially describes the house of cards that is the modern American economy.
🔗 Source
A Trifecta of Macro Imbalances.
(Otavio Costa)
For the first time in history, the US is experiencing a confluence of three macro extremes all at once:
The debt problem of the 1940s
The rising inflationary environment of the 1970s
The excessive financial asset valuations of the late 1990s
🔗 Source
World Food Prices Are Climbing Closer Toward a Record High.
(Bloomberg)
Global food prices jumped toward a record last month, further adding to the surging cost of living for consumers. The United Nations’ index of prices rose 1.1% in January, pushed up by more expensive vegetable oils and dairy. The gauge is edging closer to 2011’s all-time high, and unfavorable weather for crops and the fallout from an energy crisis threaten to keep prices high going forward.
🔗 Source
Five Major Canadian Banks Mysteriously Go Offline in Outage.
(Finbold)
On February 16, five major Canadian banks went offline, preventing a number of customers from using e-Transfers, online banking, and mobile banking services. The financial institutions affected by the outage included the Royal Bank of Canada (RBC), BMO (Bank of Montreal), Scotiabank, TD Bank Canada, and the Canadian Imperial Bank of Commerce (CIBC).
🔗 Source
Last Week’s Market Performance Heatmap
(FinViz)
🔗 Source
Curated by Joseph Lu, CFA®
Joseph is the founder and managing director of Conscious Capital Advisors and a CFA® Charterholder.
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