Please refer to Important Disclosure Information at the end of this note.
Its 5:30 am EST on a Thursday morning. China's stock market is halted again. Its shaping up to be another ugly session here in the US.
Time to recap everyone's favorite "worry" list:
- Mayhem in the commodities complex (e.g., oil) which has led to a meltdown in the high yield markets.
- The blackbox basket case that's China and the associated industrial recession.
- The Fed tightening and the US dollar strength, although causality here is unclear.
- The market internals, which are not pretty; When you strip out FANG (Facebook, Amazon, Netflix, and Google) there's not a lot to cheer about. Even retail is hurting due to an unusually warm winter.
- The folks on CNBC did some pattern-matching and found striking similarities between 2016 and 2008.
Certainly no dearth of issues.
If a large commodity company files for bankruptcy, are there banks that could be vulnerable? Deutsche Bank?
Are we due for a 20% correction? I don't think anyone really knows.
That said, its much easier to have a fundamental view on individual stocks where one can project cash flows and make a reasoned argument on what the shares are worth.
Important Disclosure Information
Please remember that past performance may not be indicative of future results. Different types of investments involve varying degrees of risk, and there can be no assurance that the future performance of any specific investment, investment strategy, or product (including the investments and/or investment strategies recommended or undertaken by Burr Capital LLC), or any non-investment related content, made reference to directly or indirectly in this research will be profitable, equal any corresponding indicated historical performance level(s), be suitable for your portfolio or individual situation, or prove successful. Due to various factors, including changing market conditions and/or applicable laws, the content may no longer be reflective of current opinions or positions. Moreover, you should not assume that any discussion or information contained in this research serves as the receipt of, or as a substitute for, personalized investment advice from Burr Capital LLC. To the extent that a reader has any questions regarding the applicability of any specific issue discussed above to his/her individual situation, he/she is encouraged to consult with the professional advisor of his/her choosing. Burr Capital LLC is neither a law firm nor a certified public accounting firm and no portion of the research content should be construed as legal or accounting advice. A copy of Burr Capital LLC’s current written disclosure statement discussing our advisory services and fees is available for review upon request.