E Global Exception

Yesterday I concluded my tables by warning that there would be reversals of the triple-digit rises in several of our positions. Of course, I had no idea which stocks would fall, or I would have told my followers to sell them today. In fact, the dump was general as markets fell sharply over concern about high bond yields and potential inflation. While I know the Fed wants some inflation at around 2%, being the household shopper has made me aware of serious double-digit price hikes on some staples at my local supermarket. We are not talking about 2% but about 10%+. Janet Yellen probably doesn't do the shopping for her family in Washington, but she should look at her bills more closely.

The global exception didn't hold today and even good news from small drug firms did not lead to a rally.

The big selloff was on Q, but the Dow-Jones lost 170 points at the open as bond yields rose some more. The big good exception is gold, which rallied. The big bad exception was Boeing whose stock rose despite another accident with a 777 in Denver Sunday. BA, BA black sheep rose 1.3% despite the close call and grounded 777 planes with a Pratt Whitney engine, but there aren't a lot of them flying.

Off to the news:

Today's Worst Performer, alas, my pick for 2021:

*Brazilian Cosan CZZ, in a restructuring, crashed 10.4% today on concern about its debt, about $5 bn net of cash it has to hand. Most debt is in bucks and the cash and assets are in reais and Argentine pesos, so there is a worry about exchange risk and higher costs for new borrowing. I think this is overdone.

Utes and Energy

*AQNAlgonquin Power & Utitilities of Canada, fell 4.6% at the open after revealing it would lose $45-55 mn in earnings from the Texas energy massacre. It earned 5-6% of its 2019 eps in the Yellow Rose state. We own it for dividends and before I could buy more the share gained half the drop.

*Atlantica Sustainable Infrastructure plc, in which AQN invests, fell 5.3%. AY was tipped by Harry Geisel. I bought more at 25% below its year's high. Remember that to benefit from its tax-free payouts you must continue owning AY. I like it better than Harry's latest idea which may never be posted.

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