MM 2 February 2021

 Quotes

„Do not short sell to hedge, short sell to make money“, John Armitage

An essential component of the price discovery mechanism and a key provider of market liquidity, short selling plays a critical role in equity markets. It takes two to make a market. Not surprisingly, therefore, short selling is as old as the stock exchanges themselves, the first registered complaint about short sellers being traced back from the Dutch East India Company in 1609 and the first naked short selling ban being introduced in Britain in 1733. 

Markets & Macro news

Correction under way

It's the economy stupid (money being spent)

Starting to eat into markets liquidity

Deleveraging of speculative leveraged positions will force selling

On both sides of the trade

Also earnings have yet to catch up with stock prices

And the mood is bullish

Mostly because shorts are being squeezed

Or if you happen to have switched to commodities on time

Or be on the receiving hand of ESG flows

Valuation multiples now higher than during the last internet bubble

US budget deficit

Themes, Sectors & Corporate news

A question of trust. Gold is money. Everything else is credit.

Silver makes front page news, as deficit could create real shortages and massive short squeeze. Silver is money

Uranium is another mineral worth watching

Cameco confirmed closing of mine as costs of production below spot price, just as global inventories shrinking fast and new technologies (eg Bill Gates clean nuclear plans) set to give a second life to the industry

Technology adoption in renewable

Where is the money flowing to? Facebook's revenues for one.