2.4 C
London
Sunday, February 5, 2023
HomeSomeone's Expense Is Someone Else's Revenue
Array

Someone’s Expense Is Someone Else’s Revenue

Date:

Related stories

Are Residential Landlords Leading the Way on Income Tax Non-Compliance?

In his October 2022 speech to The Tax Institute’s Tax Summit, the second commissioner of taxation at the Australian Taxation Office (ATO), Mr Jeremy Hirschhorn,… Read More ›

The post Are Residential Landlords Leading the Way on Income Tax Non-Compliance? appeared first on Austaxpolicy: The Tax and Transfer Policy Blog.

Fake Meat Fail: Sales Collapse At Beyond Meat, Impossible Foods As 20% Of Staff Laid Off

Fake Meat Fail: Sales Collapse At Beyond Meat, Impossible Foods As 20% Of Staff Laid Off The fake meat industry appears to be in a death-spiral as sales at plant-based 'meat' companies Impossible Foods and Beyond Meat have imploded. As ...

Update To ‘Sims’ Video Game Features Teen Trans Characters With Chestbinders, Breast Removal Scars

Update To 'Sims' Video Game Features Teen Trans Characters With Chestbinders, Breast Removal Scars Authored by Steve Watson via Summit News, A new update to the popular “Sims” video game, where the player controls communities of simulated...

EU’s Nat Gas Cuts Likely To Spill Into Next Year

Europe is nearing the end of winter with record-high levels of natural gas in storage—news that has been appropriately celebrated in the media. Yet declarations that the crisis is over appear to have been premature. Because even with this record gas in...

A Return To ‘Head-Smacking Craziness’? Hedge Fund Billionaire Singer Warns ‘Bear Market Is Not Over Yet’

A Return To 'Head-Smacking Craziness'? Hedge Fund Billionaire Singer Warns 'Bear Market Is Not Over Yet' "Central bankers think they are the masters of the universe because the world is looking to them (and only them) to deliver continuou...
Someone's Expense Is Someone Else's Revenue

By Peter Tchir of Academy Securities

Someone’s Expense is Someone Else’s Revenue

That is really all I want to say as we start digesting earnings reports, and far more importantly, earnings calls.

It is such a simple and obvious statement, I feel I should apologize for using it, not only as the title of a T-Report, but as the entire message in this T-Report. But, there has been so much pushback on my recession view, on the vision of a “pendulum swinging” right through “soft landing” zone into recession zone, that I felt compelled to come up with my “best” argument.

Someone’s expense is someone else’s revenue.

Every expense cut, every wage cut, every layoff, takes someone else’ revenue away.

Ultimately, given the circular nature of the economy, that probably circles around to someone else cutting their expense that was at one time your revenue.

We hit on “circularity” In our 2023 Outlook – PAIN and it remains no less important today, than it was then.

Positioning has reverted to being too bullish again (breaking the 200 DMA on the S&P 500 (around 4,000) pulled in a lot of technical traders) and sets us up for more downside.

If the Fed wasn’t battling its own demons, we would have seen policy being developed to catch the economy they pushed over the edge, rather than them jumping up and down on it a few more times like some UFC fighter in a violent rage.

All that and I’m not even yet “max” bearish as I too am afraid of the power of the “soft landing” narrative, which so many are grabbing hold of.

Apologies for such a simplistic T-report, but sometime KISS applies, at least in my own mind.

Tyler Durden Wed, 01/25/2023 - 11:28

Subscribe

- Never miss a story with notifications

- Gain full access to our premium content

- Browse free from up to 5 devices at once

Latest stories

LEAVE A REPLY

Please enter your comment!
Please enter your name here