Saturday, November 7, 2020

Standing Back and Standing Down

We'll be standing back and standing down for at least 4 years! Woohoo!

P.S. Best election year ever. 🙂

Tuesday, June 16, 2020

Covid Kitty

The Covid Kitty takes after Punxsutawney Phil. If he comes out and sees his shadow then there will be 6 more weeks of pandemic. And then, unfortunately, he repeats the process.

Sunday, May 31, 2020

Infectious Words

August 12, 2015
Illusion of Prosperity: The More I Listen to Donald Trump...

I can't speak for others, but the more I listen to Donald Trump the more I realize just how infectious his words are.

And when I say infectious, I don't mean irresistible and compelling in a rapidly spreading influence over me sort of way.

I mean his words give me nausea and fatigue, in a rapidly spreading influenza into me sort of way.

If only it was just influenza. Not only is the USA currently the world leader in Covid-19 deaths by a very wide margin, but we also have unemployment at historical levels, a massive increase in our national debt, and justifiable national civil unrest possibly not seen since the 1960s. Making America Great Again? Seriously?

If Trump intended “when the looting starts, the shooting starts” to ease tensions and de-escalate the civil disorder, I’d say that his strategy has failed miserably. Of course, that’s not what he probably intended his words to do. As always, I strongly suspect that he intended his words to be infectious.

Let that sink in. Sigh.

Bad men need nothing more to compass their ends, than that good men should look on and do nothing. - John Stuart Mill, 1867

Saturday, May 30, 2020

The Faces of Cabin Fever

River is at her wits’ end, desperately clinging to any sense of normalcy.

Meanwhile, Dexter has chosen to escape reality into the world of video games. Cats. Go figure.

Our pets take after their human parents.

I’m not suggesting that all we’re doing is clinging to pillows and playing video games during a pandemic. Far from it. We’ve also been walking, eating, and watching TV. In fact, we’re currently watching the local protesting and looting news going on right now in downtown Seattle. I think that’s much more than just cabin fever gone wild though.

Some have claimed there is a lot of pent-up demand due to the pandemic. Seems to be a lot of pent-up demand for justice, tear gas, burning police cruisers, and/or freshly looted Nordstrom purses and perfume.

At what point do we tire of all this winning? Sigh.

Friday, May 29, 2020

Initial Claims

Over the past 7 weeks, initial claims have settled into a negative 14.1% weekly growth rate (as seen in the exponential decay trend in red on the chart). Should the trend continue, there will be an additional 9.8 million cumulative initial claims over the next 10 weeks. At that time, initial claims will mostly be back to normal. Speaking of normal...

In normal times, 10 million claims in just 10 weeks would be considered very bad news. Good thing these aren’t normal times. What’s 10 million more when we’ve already seen 40+ million in the previous 10 weeks?

How many of these jobs will actually return? And of those that do, how long will it take? Stay tuned.

The illusion of prosperity is alive and well. Thanks for asking. Sigh.

Source Data:
St. Louis Fed: Initial Claims

Wednesday, May 13, 2020

The Planet Fitness Report v.002

April 17, 2020
TheStreet: Planet Fitness Pumped Higher on Expected Reopening

Investors were pumping shares of Planet Fitness (PLNT) higher on Friday on expectations that the gym and fitness chain will be among the first allowed to reopen its doors under President Donald Trump’s guidelines for easing the lockdown amid the coronavirus pandemic.

Planet Fitness stock was up 10% at $55.11 in trading on Friday following Trump’s phase one recommendations to restart the U.S. economy that would allow it to open itself back up - so long as it adheres to strict physical distancing and sanitation protocols.

Somebody sure was pumping, and then they were clearly dumping.

PLNT closed at $50.10 on April 16th, reached an intraday high of $66.28 on April 29th (a 32% gain in just 13 days), then fell back to close at $47.92 today, netting a 4% loss for the round trip.

Meanwhile, my local Planet Fitness is closed, they have temporarily stopped charging my credit card, and I have not yet decided if I will cancel my membership when it reopens. The sooner they reopen and start charging me, the more likely I will be canceling. In any event, I will not be using their locker rooms and showers again. At best, I will be attending late at night when few are around, dressed ready to workout, and will be taking showers at home afterwards. Not quite the same experience.

Opinion subject to change at some point should a highly effective vaccine appear. Planet Fitness investors better hope that my thinking is the exception, and not the rule.

This is not investment advice.

Source Data:
Yahoo Finance: PLNT

Monday, May 11, 2020

Flattening the Curve

If industrial production in the United States was a disease, I’d say we’ve done a great job socially distancing ourselves from it since the Great Depression.

Source Data:
St. Louis Fed: Custom Chart

Saturday, May 9, 2020

The Path Back to the 1950s

The following chart shows retail and wholesale employees per capita. We peaked in April of 2000 at 7.35%.

When it comes to retail and wholesale trade employment, we were eventually heading back to the 1950s anyway. The virus is simply speeding things along. I doubt very much that we will stop at the 1950s. Fully automated warehouses are only a matter of time. At what point will the government stop reporting non-farm payrolls and instead start reporting non-farm, non-retail and non-wholesale trade employment?

This is deflationary. Robots will never demand higher wages to compensate them for all their hard work.

May 8, 2020
CNBC: Coronavirus fallout: Here are the 16 department stores Nordstrom is closing permanently

Nordstrom shares were up about 4% Friday afternoon, amid a broader market rally. The stock, valued at $2.8 billion, has fallen about 56% this year.

The world is running out of department stores. They just aren’t making any more of them! Buy now or be priced out forever!! There’s never been a better time to buy department stores!!!

This is definitely not investment advice. Sigh.

Source Data:
St. Louis Fed: Custom Chart