VEGAS: A HOT SUMMER (FOR CUSTOMERS)

Judging by the new room promotion at The Venetian, demand for Las Vegas has cooled considerably. The Venetian is offering a room rate based on the forecasted temperature. I guess a Las Vegas hotel makes more money with that promo than say one in Thunder Bay, Ontario. However, a $100 room at one of the nicest hotels in Las Vegas is a hot deal for customers but chilling for investors. For patrons looking for a step up in quality, the Four Seasons is offering a free room with a 2 night stay. Hopefully, the Four Seasons Hotel Macao, Cotai Strip will do a little better when it opens on October 1st.

I've written extensively on the coming margin compression from room rate pressure so I won't rehash much here. See Mean Margin Reversion... posted on 6/22/08 and More Margin Context... also posted on 6/22. Suffice it to say that most of the big expansion in property level margins over the past 15 years was driven by room rate increases. The Las Vegas model aims to hold occupancies to drive casino visits. Not good for room rates and margins in this environment.

SECTOR SPOTLIGHT | Live Q&A with Healthcare Analyst Tom Tobin Today at 2:30PM ET

Join us for this edition of Sector Spotlight with Healthcare analyst Tom Tobin and Healthcare Policy analyst Emily Evans.

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Cartoon of the Day: Bulls Leading the People

Investors rejoiced as centrist Emmanuel Macron edged out far-right Marine Le Pen in France's election day voting. European equities were up as much as 4.7% on the news.

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McCullough: ‘This Crazy Stat Drives Stock Market Bears Nuts’

If you’re short the stock market today, and your boss asks why is the Nasdaq at an all-time high, here’s the only honest answer: So far, Nasdaq company earnings are up 46% year-over-year.

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Who's Right? The Stock Market or the Bond Market?

"As I see it, bonds look like they have further to fall, while stocks look tenuous at these levels," writes Peter Atwater, founder of Financial Insyghts.

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Poll of the Day: If You Could Have Lunch with One Fed Chair...

What do you think? Cast your vote. Let us know.

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Are Millennials Actually Lazy, Narcissists? An Interview with Neil Howe (Part 2)

An interview with Neil Howe on why Boomers and Xers get it all wrong.

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6 Charts: The French Election, Nasdaq All-Time Highs & An Earnings Scorecard

We've been telling investors for some time that global growth is picking up, get long stocks.

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Another French Revolution?

"Don't be complacent," writes Hedgeye Managing Director Neil Howe. "Tectonic shifts are underway in France. Is there the prospect of the new Sixth Republic? C'est vraiment possible."

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Cartoon of the Day: The Trend is Your Friend

"All of the key trending macro data suggests the U.S. economy is accelerating," Hedgeye CEO Keith McCullough says.

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A Sneak Peek At Hedgeye's 2017 GDP Estimates

Here's an inside look at our GDP estimates versus Wall Street consensus.

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Cartoon of the Day: Green Thumb

So far, 64 of 498 companies in the S&P 500 have reported aggregate sales and earnings growth of 6.1% and 16.8% respectively.

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