01-JANUARY 20-2021

Won't go away!Good morning.
The big banks have nearly all reported earnings. And while many analysts have been concerned about how the banks can profit when interest rates are zero, those analysts are forgetting one key ingredient: The spread.  When rates are zero, depositors at the bank are getting zero percent returns.  The cost of capital to the bank is free, or nearly free.
On the flip side, when a bank makes a loan, even a mortgage at today’s low rates, they’re still earning a decent spread.  With the yield curve for Treasuries steeply positive, banks are actually doing quite well borrowing near zero and earning a few percent.  Add in the revenues from trading or last year’s record number of IPOs, and this is a sector that could be ripe for outperformance in the year ahead.

Now here’s the rest of the news:

The Unseen Costs of Government ‘Investments’ –Gary M Galles, FEE
About the only real difference from the past was increasing the number of things called investments and the number of zeros at the end of the amounts promised. [Read Here]

January 20, 2020

Mitchell Eye CentreMorning!
The Santa Claus rally was in full swing.  The Nasdaq index broke 9,000 for the first time ever.  More interestingly, that index is up for the last 11 trading days in a row.  What are the odds?  It depends on which market theory you use … If you use the “Random Walk” theory, each day is a coin flip between a gain and a loss.  The odds of flipping heads 11 times are a mere one half of one percent (0.05%).  But markets have a memory, and when things are bullish, heads seem to come up often.  When bearish, tails seem to come up often.  That said, it’s the longest streak of up days in a row since July 2009, so expect one or two off days in the coming week to break it… even with a longer-term bull market in place.

“I hate Monday, Tuesdays, Wednesdays, Thursdays, and half of Fridays…”

Right-eye cataract surgery this afternoon.  Took a bus there, to the Mitchell Eye Centre, waited for 3½ hours until they could get me in.  I was one of the last patience of the day!  Bill Jones drove in from Airdrie to pick me up and drive me home.  Sure is nice to have great friends!  All went very well…

“The Formula for High Performance”

The long and the short is, “we went long and got shorted.” 😉

January 20, 2019

Final Day #14 – Ends officially at 9:59 PM (MST) tonight!

Best Coffee pick me up ever!  Breville® ‘the Milk Café™  [BMF600XL]

  • Larger capacity is great for serving more than one cup-at-a-time.
  • Operation is very quiet… quieter than a Microwave.
  • Makes great Hot Chocolate, or Chai Tea latté, or warm milk for bedtime!
  • Add cinnamon, vanilla extract or Irish Whiskey — to make it extra special.
  • No overheating… EVER!!!
  • Even froths milk without heating.
  • ‘Cold Stir’ for that ice cappuccino.
  • And … [No more ‘heating milk’ on-the-stove], ‘we’ hate burnt milk — or reheating coffee — ‘bubbling it over’ in the microwave.  😉
  • Heats Soy, Almond, Skim & Organic Milk [simply] to the temperate you specify.  (If I was nursing, I’d use it to warm milk for my baby’s bottle).
  • Very easy to switch between Latte Frothing Disc & Cappuccino Frothing Disc,  as the extra disc is magnetic & sticks on/to the back of the machine.
  • The 3_Cup Stainless Steel Pitcher is dishwasher safe, but (with these large hands), very easy to rinse or clean in the sink, or under the tap.
  • Simple and fun to use … ‘my wife brought me my coffee’, just the way I like it, a first…
  • I’ve even taken coffee that has gone cold, and placed into the Breville for a quick warm up…  Simply Delicious… I cannot say enough great things about this machine!!!

PS: I posted a FB Live video: this video found on YouTube is better.

Not a penny goes into my pocket ‘should you decide’ this is something you will check out.  It is certainly an item on my gift-giving-list…  Enjoy!

IMG_0712
Come From Aways, Do You?

More Posts

06-JUNE 19-2021

How To Win The Day With every sunrise comes opportunity.  Each day is a figurative clean slate — another chance at getting it right and moving the ball closer to the goal line.  Regardless of what happened yesterday, we have the chance to start anew each morning. And the morning sets the tone for the entire day.  You own the morning, you win the day.  The happiest, healthiest, and most successful people know this.  They embrace it, and they use it to their advantage.  They build morning rituals to establish the foundation for the day. Here are 6 things they

06-JUNE 18-2021

Good morning. The biggest bombshell from the latest Fed meeting was the acknowledgement that inflation was coming in far higher than expected.  While the Fed continues its policy of trying to talk the market into always going up, some see a tapering of its asset purchases sooner rather than later. While that doesn’t mean higher interest rates right away, what it does mean is a big slowdown in money creation and addition to the central bank’s balance sheet.  That’s likely why both bond yields and gold prices have been dropping.  While tapering might spook the market, the prospect of lower

06-JUNE 17-2021

Good morning. Yesterday’s Federal Reserve meeting minutes kept interest rates at 0 percent, as expected.  And the Fed isn’t ready to taper its asset purchases (money printing) anytime soon.  But in trying to please everyone, the central bank sometimes ends up pleasing no one. The central bank made a big revision in its inflation estimates, from 2.4 percent to 3.4 percent.  While calling higher inflation “transitory,” the market isn’t so sure.  And, after the March meeting indicated no potential for an interest rate hike until 2024, there’s now an increasing possibility of a rate hike in 2023. The only real

06-JUNE 16-2021

Good morning. Michael Burry is a fund manager best known for going against the housing market in the runup to the meltdown.  Today, Burry sees inflation as the biggest threat to the economy.  And with prior stimulus measures boosting the price of everything from stocks to housing, the biggest threat is a nudge into hyperinflation.  Burry sees that happening this year.  Burry also sees the stock market as not only the greatest market bubble of all time, but the biggest by at least “two orders of magnitude.”  As investors adjust their return expectations for inflation, that bubble may burst. Time

06-JUNE 15-2021

Good morning. Most financial news is predicated around the idea that markets are either going up or down.  But sometimes, like now, indices are largely trading sideways.  When that happens, traders will start to look for clues as to what happens when the sideways trend ends. For most market conditions, a sideways trend can last anywhere from 6-12 months in part of a broader bull market.  That looks like the case here, given that most indices are still near all-time highs.  But it’s a time to find companies that have been hit the hardest and look set for the biggest

06-JUNE 14-2021

Good morning. There’s an old Wall Street saying that the cure for high prices is… high prices.  That’s because when prices are high, competition comes into play and customers seek substitutes.  Recent inflation data showing a jump in home and car prices (both new and used), is also leading to potential buyers to hold off on making a purchase. That could reduce demand enough to keep prices from heading higher in those areas.  A slowdown in governmental assistance to the economy in the form of stimulus checks and high spending may also help nip this rising inflation in the bud. 

06-JUNE 13-2021

Here’s to a better YOU … and now … Today’s DarrenDaily Recap Sunday.  A collection of the weeks videos from Darren Hardy.  Enjoy! Naturally beautiful: Newfoundland, Canada. …pink and very colourful! P.S. “In order to succeed, your desire for success should be greater than your fear of failure.” –Cosby Show June 13, 2020 “What you can create will absolutely astound you, but you have to start now.” —Marie Forleo Top 10 Benefits of Using Resistance Exercise Bands 1. ADAPT EASILY FOR MULTIPLE FITNESS LEVELS…  Resistance bands come in multiple resistance levels, usually light, medium or heavy.  You can further adjust

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment

Send Us A Message