By Jeffrey Cohen, Investment Advisor Representative
US Advanced Computing Infrastructure, Inc.
June 30, 2022
We noticed a few things this morning:
1. New lows are outweighing new highs again, both in US Equities and US Fixed Income. This is a key indicator for us on the breadth of the decline in stocks. Don't catch falling knives.
2. Interest rates are falling today, into the end of the quarter. We think this may be window dressing, and may not last. The FED is raising rates, right?
3. We discuss, again, our logic for betting against Lakeland Financial $LKFN and Bank of Hawaii $BOH. We go to the 10-Qs. What we didn't realize is how poorly they treat their depositors! These companies are not very kind to their depositors financially. You will see it in the videos. We also show how much money they lost in Q1 and likely the same thing happens in Q2, but you won't see it in the income statement or net income. However, those losses show up in the balance sheet and banks trade at a multiple of common stock equity.
4. Not surprising is that the US equity futures are red today. What is surprising is how badly the European markets did, and the Japanese Nikkei. They surpassed the US Equities market performance yesterday. The tail is wagging much harder than the dog today.
Good luck to all.