Below is a chart and brief excerpt from today's Early Look written by Director of Research Daryl G. Jones
Flipping back to the longer term, yesterday Keith spoke with Liz Ann Sonders (Chief Investment Strategist at Charles Schwab) during our Hedgeye Investing Summit about the relationship between permanent unemployment and temporary unemployment. As always, jobs leave the economy faster than they will come back. We’ve highlighted this in the Chart of the Day. Perhaps not unlike COVID-19, permanent unemployment is likely to be stickier for longer than many people expect.
This obviously has negative connotations for many banks and credit card companies, but is positive for debt collectors - like two of our best idea longs ECPG and PRAA.
But who are we to talk about longer term, structural economic constraints in the era of the 24-hour bullish narrative/sound byte investing cycle?