TOPLEY’S TOP 10 – Feb 20, 2024

1. Earnings Week…22% of Russell Reporting

Dave Lutz Jones Trading Cam notes As we await NVDA’s earnings report keep this in mind: BoA Global Fund Manager Survey shows a possible crowded long in technology positioning, but managers can stay overweight for years.

22% Russell’s weight reports, and 45% of XOP’s – but all eyes on NVDA Wednesday.

2. A $700 Billion Insurance Product Is Powering the US Credit Market Rally-Bloomberg

  • Annuity sales could total about $700 billion in next two years
  • Funds likely to be allocated to corporate and structured debt

By Olivia Raimonde and Alicia Clanton

An insurance product that consumers use to help fund their retirements is selling at record levels, powering demand for corporate debt and commercial mortgage bonds.

Last year, sales of annuities, which allow consumers to effectively buy income for the rest of their lives, reached an all-time record high of $385 billion, according to life insurance trade group Limra. That’s up 23% from the year before. The products grew more attractive as rising interest rates translate into higher potential annual payouts from the products.

Behind the scenes, the life insurers that usually sell annuities are buying bonds to generate income for the products, and in particular, corporate debt and asset-backed securities including mortgage bonds. Their demand might decline a bit this year after bond yields have fallen, but Limra says annuity sales are still expected to remain strong by historic standards.

3. Dividend Payers vs. Non-Payers Long-Term

Motley Fool,correlated%20to%20the%20stock%20market.

4. S&P Vs. REITS 1972-2021

5. Home Depot Chart …Earnings Today

HD did not make it back to previous highs

6. Walmart Did Make New Highs Prior to Today’s Earnings

7. Another Day…Another China Implosion Chart …Foreign Investments in China $350B to $50B

China’s direct investment liabilities in its balance of payments stood at $33 billion last year, according to data from the State Administration of Foreign Exchange released Sunday. That measure of new foreign investment into the country — which records monetary flows connected to foreign-owned entities in China — was 82% lower than the 2022 level and the lowest since 1993.

8. China Solar Panel Overcapacity 

Barrons The country’s overcapacity and overproduction pose risks not just to China but also to rivals in these sectors abroad. Take solar panels. Beijing mandated that state-owned enterprises get half of their energy capacity from renewables by 2025, contributing to strong solar panel growth. But prices for solar inputs and panels have tumbled. Eurasia Group estimates that 60% to 70% of solar firms could face bankruptcy or acquisitions in the next couple of years, potentially saddling Beijing with another debt-laden sector.
By Reshma Kapadia

9. Cutting the Cord on Cable Continues with New Sports Streaming Packages….CHTR Negative 5-Year Return

10. Successful People vs. Unsuccessful People