NASDAQ Goes Haywire as Powell Doubles Down

Published on
February 23rd, 2021
Duration
36 minutes

Brazilian Markets Crash and Energy Shines as Yields Break Higher


NASDAQ Goes Haywire as Powell Doubles Down

Daily Briefing ·
Featuring Thomas Thornton and Ash Bennington

Published on: February 23rd, 2021 • Duration: 36 minutes

Real Vision senior editor Ash Bennington welcomes Tommy Thornton of Hedge Fund Telemetry back to the Daily Briefing to make sense of how a jittery stock market copes with rising yields. Thornton analyzes this morning’s big sell-off in the NASDAQ with “growthy” names plunging double digits, and he explores whether technology could be poised for underperformance in the coming months. Thornton explains why he is bullish on the energy sector, noting that it is one of the few sectors with a reasonable short interest. Bennington and Thornton then review Fed Chair Powell’s testimony at the Senate Banking Committee, which perhaps was meant to assuage the markets.

Comments

Transcript

  • MD
    Matt D.
    27 February 2021 @ 03:46
    Ha - "Cathie Wood, Hmmm.... Sorry got sidetracked". Classic.
  • TT
    Tommy T. | Contributor
    26 February 2021 @ 21:11
    Thanks all for watching. Appreciate the comments - the good and bad. And I will get some WD40 for my chair. At least I said bonds would sell off late in the week
  • DM
    Dominic M.
    25 February 2021 @ 03:41
    Fantastic conversation—thank you, both.
  • SS
    Scott S.
    24 February 2021 @ 23:13
    Casting some shade on Cathy Wood, eh? Well, maybe if his performance was as good as ARKK he might be able to afford some grease for that squeaky chair.
    • CP
      Chamil P.
      25 February 2021 @ 03:05
      Haha yea. Would be good to see Cathie on RV. She thinks very differently. The future of investing is investing in the future!
  • CP
    Chamil P.
    24 February 2021 @ 23:55
    Lol there is something about Tom and GME. It's back!
  • MT
    Mike T.
    24 February 2021 @ 16:51
    most interesting that yesterday whilst 'sweat beatle' Jerome Powell was trying his best to convince us interest rates will stay low or even negative, today we see Market reaction : 2 year yields jump higher by over 20%. The Fed is on borrowed time with their current 'low interest rates' narrative, and to think this is the collective wisdom of over 15000 Fed employees. What do they actually all do?
    • JF
      Joao F.
      24 February 2021 @ 22:56
      They get their paycheck at the end of the month and play cool!
  • WZ
    Wei Z.
    24 February 2021 @ 22:22
    The creative destruction in capitalism should've be done a decade ago, asking FED for a strong hawkish stand in a pandemic and much more debts both corporate and government? What are you thinking?
  • Sv
    Sid v.
    24 February 2021 @ 17:23
    I have to comment, the interviewer was excellent. Ash, as always, is well informed on the issues and makes the interview worthwhile.
    • AB
      Ash B. | Real Vision
      24 February 2021 @ 19:49
      Thanks, Sid. I appreciate that.
  • ME
    Mark E.
    24 February 2021 @ 13:00
    Inflation??? Based on what? Wages certainly aren't going up anytime soon given the tens of millions of newly unemployed in the US. And lower income folks struggling to survive on their stimulus checks aren't going to cause inflation either. There is certainly pent up (i.e., one off) consumer demand from those still employed, due to the lock ups, but with Europe and Japan experiencing deflation, there is no way we are entering a new era of persistent global inflation. Higher commodity prices caused by supply issues do not in themselves mean anything other than potential transitory inflation in certain goods. And with wages pinned down by high unemployment, higher prices mean nothing if demand falls concurrently. Sorry, but RV needs more guests that actually understand economics rather than those that reiterate the same old manipulative narratives that WS is pushing. First the bullshit 'Fed money printing' narrative, and now 'inflation'. Disappointed that RV, with interviews like this, sounds just like a more elite and expensive version of CNBC.
    • JP
      John P.
      24 February 2021 @ 19:24
      What you are describing is stagflation. It's what happens when money is printed. Your wage stays the same and everything you want goes up. Declining demand doesn't matter because it just further constrains supply. In the end we all must accept less and the people closest to the money printer have more.
  • BS
    Barbara S.
    24 February 2021 @ 15:02
    How long are you going to push abusive government narrative??? What is wrong with this channel? It was my biggest mistake to subscribe.
  • DG
    David G.
    24 February 2021 @ 06:25
    There will never be official inflation until all the frogs are finished being cooked in the fed's stew. We've been simmering for 50 years, it will eventually be time for dinner.
    • WT
      William T.
      24 February 2021 @ 12:07
      yeah keep waiting
  • GF
    Gordon F.
    24 February 2021 @ 03:26
    With regard to inflation, the Fed wants 2%, and is willing to let it run a little higher to "average things out." I suspect that this is an impossible quest. Due to various demographic and debt factors, the natural condition of our economy is mild deflation. If the Fed and other central banks push hard enough for inflation, we will get it, but it will quickly cross over into hyperinflation. At that point they will REALLY be between the proverbial rock and a hard place, because it would require Volker-type tightening - or worse - to get hyperinflation back under control, which will be intensely painful. But if they are unable or unwilling to take such steps, hyperinflation will progress to its natural end, but on a global or near-global scale. I really have a hard time imagining what that might look like, but it won't be pretty.
    • JF
      Jess F.
      24 February 2021 @ 11:29
      The FED wants hyper-inflation, its the only way to clear the massive debt. Why do you think they are printing like crazy, and have been for a very long time, if you include that which cannot be mentioned in polite financial circles. I'm referring to the missing $21+ Trillion government spending that cannot be accounted for.(Hat Tip to Catherine Austin Fitts and Dr Mark Skidmore). The only thing that makes any sense of the present spend and print like there is no tomorrow is a deliberate attempt to wreck the system and re-set to a new medium of exchange, probably another useless fiat, but with a crypto handle.
  • AW
    Austin W.
    24 February 2021 @ 10:53
    Just love Tommy Thornton!
  • JF
    Jonathan F.
    24 February 2021 @ 02:54
    I’ve missed Ash. Nice show.
    • AB
      Ash B. | Real Vision
      24 February 2021 @ 03:37
      Thanks, Jonathan. Very much appreciated.
    • VS
      Ville S.
      24 February 2021 @ 10:42
      We love Ash
  • VS
    Ville S.
    24 February 2021 @ 10:41
    One of the best DBs...didn't like the guest before but now he did a great job
  • JP
    John P.
    24 February 2021 @ 07:58
    The fed needing to make a change because "otherwise the problem will only get worse" is missing the point. They know this and they are doing it on purpose. They want it to get worse. The inflation metric game is simply their own stealth version of yield curve control.
  • FC
    Frank C.
    24 February 2021 @ 05:05
    Tommy on fire! Great Job!
  • RM
    Rupert M.
    24 February 2021 @ 05:01
    Favourite RVDB guest by far
  • PW
    Patrick W.
    24 February 2021 @ 04:16
    I cant wait to get Sterilized by the Covid Vaccine Scam - Moron Guest.
    • PW
      Patrick W.
      24 February 2021 @ 04:17
      I stopped watching after that Quote...
    • kR
      kirk R.
      24 February 2021 @ 04:43
      @Patrick, Although I totally agree with your sentiment about his vaccine comment and the fact that Thomas drinks all the gov't kool-aide he can get his hands on. He knows his shit about markets and is 100% worth listening too!
  • NE
    Nathan E.
    24 February 2021 @ 03:13
    What he clearly articulated is the USA is on a 'goat path' where Fed monetary policy is concerned. Forced to continue the same policies that kick the can down the road because they are unable to turn back. Meanwhile the destructive potential of whatever cataclysmic reckoning is surely coming continues to grow.
  • LA
    Linda A.
    24 February 2021 @ 02:07
    Always a treat to hear from Tommy. Working to be a better trader- thanks for sharing your tips on twitter!
  • PB
    PHILLIP B.
    24 February 2021 @ 01:57
    Fantastic content and perspective. Thank you, TT.
  • TB
    Thomas B.
    24 February 2021 @ 01:38
    Love hearing from Tom...
  • TC
    Tim C.
    24 February 2021 @ 01:19
    Tommy is always a great interview. One comment on energy. Despite the rotation into energy stocks, earnings in energy are still underperforming. There's a lot of hope and hype on this rotation. $OXY - Revenue was $3.35 billion in the latest quarter, down from $7.14 billion a year earlier  Analyst forecast was $4.32 billion. Stock hardly dropped given the miss. Nothing is being priced by DCF. Feb 2020 $OXY was trading in the low $40s with oil floating in the low $50s. There is a convexity wrt oil prices, tipping point around $60 when things were normal, but $OXY carry is heavy. So I think next earnings for energy is going to suck and sour. Not dissing the rotation play, just saying it has headwinds. Commodities seem safer... As far as the Fed goes, I think it's a way more layered problem. SLR expires at the end of March. Part of the rise in the long end of the YC is likely caused by rebalancing for the SLR cliff. There's also the TGA draw down squeezing collateral unless the TSY changes the issuance mix. Seriously, the 2Y today went off at .119%. That's below the 1.25% mandate so it went off above par. ARKK bought 115,373 shares of TSLA today - just FYI.
  • BC
    Barry C.
    23 February 2021 @ 23:24
    I agree with Tommy, hard to find any real bargains out there for vacations for prime locations (emphasis on prime)...there were some bargains last November when I booked a trip to Hawaii for right now, but now going forward everything is full price....plus the jet fuel price discount is over. Airlines and hotels have covid compliance costs that they have to pass on to their customers.
    • WT
      William T.
      24 February 2021 @ 01:09
      Let's see how that price discovery works out.
  • WT
    William T.
    24 February 2021 @ 01:07
    Well said Tom. We've lost capitatlism and instead are handing out participation ribbons to losing companies. Just tell the kid he lost and to try harder next time! "Deal with it", well said.
  • MR
    Michael R.
    24 February 2021 @ 00:31
    Wait? Stocks in the Nasdaq can go down????? I specifically heard that the FED changed that possibility.....
  • FF
    Francesco F.
    24 February 2021 @ 00:25
    Absolutely agree with him. This isn't capitalism, this is zombielism.
  • MC
    Mark C.
    24 February 2021 @ 00:14
    Will be interesting to see what bonds do over the next couple of weeks. Great interview. BTW - Is that a reflection on Tommy's glasses or is he actually a Cylon?