Enough with all the talk of Jackson Hole already.
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Takeaway: We are adding LVS to the long side today.
Editor's Note: Please note that Gaming, Lodging & Leisure analyst Todd Jordan will send out a full report outlining our high-conviction long thesis. In the meantime, below is a brief summary written by Hedgeye CEO Keith McCullough earlier this afternoon.
With the SP500 sucking back to the low-end of my immediate-term risk range, I'm back in buy/cover mode where single securities are signaling immediate-term TRADE oversold.
One of those is Las Vegas Sands (LVS) which is -1.3% on the day after correcting within our Ace, Todd Jordan's, bullish intermediate-term TREND view. Per TJ in one of his recent Institutional Research notes:
"At the end of the day, we’re talking about a company that generates less than 9% of its Macau EBITDA from VIP (and even less from junkets), so if mass growth is turning positive this is a huge inflection point. We agree with management (we don’t always) that there is little reason to believe that mass growth will be negative again (The Last Time?). The implications of positive mass growth have a long tail. Mass growth prior to the opening of Wynn Palace and LVS’s own The Parisian Macao suggests that supply absorption may be quicker than anticipated. Moreover, as the largest mass player, LVS Street Macau estimates now look achievable and, dare we say, beatable. Finally, if estimates look reasonable then so does LVS’s hefty 6% dividend yield. At this point, it doesn’t appear that the company will have to raise its already low relative leverage to pay the dividend. So now it’s finally safe to say that the big dividend yield is real, sustainable and growing. A MLP, LVS is not…"
Hedgeye Chief Political Strategist JT Taylor walks through some of the key factors and developments in the fiery 2016 Election battle between Hillary Clinton and Donald Trump.
This indispensable trading tool is based on a risk management signaling process Hedgeye CEO Keith McCullough developed during his years as a hedge fund manager and continues to refine. Nearly every trading day, you’ll receive Keith’s latest signals - buy, sell, short or cover.
Takeaway: Rate hike fears are crushing Bond Bears.
Do you remember what happened when the Fed hiked interest rates on December 15th?
So yields are falling despite all the rate hike talk...
Here's what you need to know about a potential Fed rate hike via Hedgeye CEO Keith McCullough on The Macro Show yesterday:
Wall Street likens Fed head Janet Yellen to the all knowing Oracle of Delphi. So who exactly is the Oracle of Delphi? Via Wikipedia:
"The Pythia commonly known as the Oracle of Delphi, was the name given to the priestess of the Temple of Apollo at Delphi who served as the oracle.
The Pythia was established in the 8th century BC, and was widely credited for her prophecies inspired by being filled by the spirit of the god (or enthusiasmos), in this case Apollo. The Pythian priestess emerged pre-eminent by the end of 7th century BC and would continue to be consulted until the 4th century AD. During this period the Delphic Oracle was the most prestigious and authoritative oracle among the Greeks, and she was without doubt the most powerful woman of the classical world. The oracle is one of the best-documented religious institutions of the classical Greeks.
The name "Pythia" is derived from Pytho, which in myth was the original name of Delphi. In etymology the Greeks derived this place name from the verb, pythein(πύθειν, "to rot"), which refers to the sickly sweet smell of the decomposition of the body of the monstrous Python after he was slain by Apollo. Pythia was the House of Snakes.
One of the main stories was that the Pythia delivered oracles in a frenzied state induced by vapours rising from a chasm in the rock, and that she spoke gibberish which priests interpreted as the enigmatic prophecies preserved in Greek literature."
Janet Yellen certainly spouts her fair share of economic gibberish.
***The Fed's rosy economic outlook is undoubtedly pie in the sky. Here's what we think would happen if the Fed raises interest rates... It ain't good.
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