Sell in May and Go Away?
It hasn't worked in the last decade, and it isn't working this year either, with the S&P 500 already up more than 3% this month! Source: Barchart, Bloomberg
As highlighted by Lyn Alden ->
"People often report the nominal amount of cash that Berkshire $BRK.B has, as though Buffett is hoarding cash. You can't just look at the nominal cash level. All of Berkshire's numbers go up. An insurer needs a lot of liquidity. His cash as a % of his assets is in a normal range".
What is a credit default swap? (CDS)
Source: Boring_Business @BoringBiz_
US Households have now run out of excess savings.
Current levels are worse than even 2019. The hard part is that this is happening just as the labor market has started to weaken. Source: Game of Trades
“I don’t mind at all under current conditions building the cash position."
"When I look at what’s available in equity markets and the composition of what’s going on in the world, we find it quite attractive." - Warren Buffett
Face the fact that cash is NOT a solution to a crisis
Source: Investment Books (Dhaval)
YARDENI on savings rate and labor supply shortage :
“.. retiring Baby Boomers are likely the reason that the personal saving rate is falling; they’re depressing the rate as they spend their retirement funds and no longer have earnings to save. In addition, they are spending at a record pace on labor-intensive services (restaurants, travel and entertainment, and health care), thus boosting labor demand ..” Source: LESG, Yardeni research
US small bank cash reserves plummeted by $258 billion last week below the level considered a constraint, according to ZeroHedge.
This excludes a $126 billion still sitting at the Fed’s emergency lending program that expired in March. It marked the largest decline in bank deposits since April 2022 when $336 billion came out of the banking system. Meanwhile, US regulators have seized Republic First Bank on Friday and agreed to sell it to Fulton Bank, another regional bank with $6 billion in total assets. The FDIC projects the failure will cost the fund around $667 million. Is the US regional bank crisis really over? Source: The Kobeissi Letter, www.zerohedge.com
