02-FEBRUARY 12-2021

Wait A MinuteGood morning.
2021 is shaping up to be the year of the gamma squeeze.  After moving on from heavily-shorted names like GameStop (GME), traders have turned to the pot stocks.  The marijuana stocks have seen massive moves higher in recent days, largely as options trading has exploded.
With a big drop on Thursday, no doubt many of the professional players in the space have taken some profits and are looking to move on.  What’s next for traders?  Commodity-related plays have been performing strongly and are ripe for a squeeze (see our Unusual Options Activity trade of the day below).  And Special Purpose Acquisition Companies, or SPACs have made the IPO market even hotter by being positioned as a pre-IPO trade.

Now here’s the rest of the news:

One-third of Small Businesses Say They Won’t Survive Without More COVID Aid –Megan Henney
Six months into the pandemic, debt mounted and business owners plowed their personal savings into their firms to keep them afloat.  And they’re even more fragile now…

February 12, 2020

Only ten techGood morning.
It’s important to be mindful of the fact that the stock market and the economy are two different things.  As often as they’re in agreement, they’re just as often not.
Case in point: The Baltic Dry Index.  A rough measure of global trade — at least in physical goods — the index continues to hit new lows on global economic uncertainty.  Set against a back-drop of near-record-high stock prices, it’s a stark contrast.  It’s also a good reminder that the current market could see further, seemingly unsuspected, drops ahead.

Annie Lowrey: February 7, 2020 [Staff writer at The Atlantic]

In the 2010s, the national unemployment rate dropped from a high of 9.9% to its current rate of just 3.5 percent. The economy expanded each and every year.  Wages picked up for high-income workers as soon as the Great Recession ended, and picked up for lower-income workers in the second half of the decade.  Americans’ confidence in the economy hit its highest point since 2000, right before the dot-com bubble burst.  The headline economic numbers looked good, if not great.
Treading WaterBut beyond the headline economic numbers, a multifarious and strangely invisible economic crisis metastasized: Let’s call it the Great Afford-ability Crisis.  This crisis involved not just what families earned but the other half of the ledger, too — how they spent their earnings.  In one of the best decades the American economy has ever recorded, families were bled dry by landlords, hospital administrators, university bursars, and child-care centers.  For millions, a roaring economy felt precarious or downright terrible.
Barrack Obama quoteViewing the economy through a cost-of-living paradigm helps explain why roughly two in five American adults would struggle to come up with $400 in an emergency so many years after the Great Recession ended.  It helps explain why one in five adults is unable to pay the current month’s bills in full.  It demonstrates why a surprise furnace-repair bill, parking ticket, court fee, or medical expense remains ruinous for so many American families, despite all the wealth this country has generated.  Fully one in three households is classified as “financially fragile.”
Valerie Harper quoteAlong with the rise of inequality, the slowdown in productivity growth, and the shrinking of the middle class, the spiraling cost of living has become a central facet of American economic life.  It is a crisis amenable to policy solutions at the state, local, and federal levels — with all of the 2020 candidates, President Donald Trump included, teasing or pushing sweeping solutions for the problem.  But absent those solutions, it looks certain to get worse for the foreseeable future — leaving households fragile, exacerbating the country’s inequality, slowing down growth, smothering productivity, and putting families’ dreams of security out of reach.

“Is there anything that can be done?”  … 😉

February 12, 2019

My day in the shade!  😎

By investing the time and energy to get clear on our values and life purpose, by defining and articulating what we really want from all areas of our life, and then consistently acting on our objectives, we will live a successful life.   This kind of work isn’t easy.  It requires deep thinking and honest soul-searching. It’s not something you do in an afternoon.  It demands constant focus and attention.  Unless you are the architect of your life, you are at the effect of everything and everyone you encounter.  It’s something with which we all need help.

IMG_0712
Come From Aways, Do You?

More Posts

09-SEPTEMBER 18-2021

Ten Ways To Foster Innovation In order to compete effectively, we must look for new and better ways to accomplish our mission.  We must find creative methods to delight our customers.  And we must find innovative strategies for getting more done with fewer resources. With things changing as rapidly as they are, doing things the old way won’t be profitable for very long.  To grow, we must be constantly innovating. An innovative company attracts and keeps better employees.  People want to be part of something creative.  It’s stimulating and it’s fun. Here are ten things you can do to foster

09-SEPTEMBER 17-2021

Good morning. We’re fans of following company insiders when they buy their own shares.  That’s because they only buy if they see a good value going forward.  Most company insiders are partially compensated in shares, so they have plenty of reasons to sell, from portfolio diversification to big spending bills like a second house or divorce. Overall, buying with company insiders produces excess returns compared to the market.  But they’re not the only insider group out there. Consider Congress.  Last year, two senators sold off stocks after an early hearing on Covid and before the big crash.  House Speaker Nancy

09-SEPTEMBER 16-2021

Good morning. Yesterday marked the 13th anniversary of the collapse of Lehman Brothers, a “victim” of over leverage on the US housing market.  Yesterday also marked the day when Evergrande, a Chinese real estate firm, stated that it wouldn’t pay interest on its already-collapsing bonds. For years, many have warned about the size and rate of China’s real estate buildup, from empty cities to investment homes that sit unused (one of the few places where citizens can park cash).  While we’re optimistic that the damage can be contained to China and not impact global growth too much, we also can’t

09-SEPTEMBER 15-2021

Good morning. We’ve warned for weeks that stocks are at elevated levels, and that a modest pullback would be likely.  Now, however, investor sentiment has gotten heavily bearish, for more than just a small pullback. That’s somewhat concerning, as fears of a market pullback could lead to enough profit-taking and cash-raising that it becomes a self-fulfilling prophecy.  However, a market so quick to get so bearish could also be a sign that there’s still a major rally ahead.  Bull markets don’t die when investors get fearful.  Rather, it’s when investors get so bullish that they go all-in at record highs.

09-SEPTEMBER 14-2021

Good morning. With Labor Day weekend over, oil prices should be trending down.  The summer driving season in North America is over, and it’s largely an American phenomenon.  However, expectations for a potentially colder-than-average winter are keeping a bid under oil prices right now. At a time when traders typically expect lower prices going forward, oil is now at a 5-week high and trending higher.  And Bank of America analysts see crude oil pumping as much as $100 per barrel under an exceptionally cold winter scenario.  It’s likely that gas prices may remain higher for longer than expected, and can

09-SEPTEMBER 13-2021

Good morning. Last week, Treasury Secretary Janet Yellen warned that the measures underway to preserve cash at the US Treasury were likely to run out in mid-October.  Unless Congress acts to raise the debt ceiling, there could be a potentially debt cliff where a number of government programs simply don’t get paid. That’s a scenario that nearly unfolded in 2011. 10 years ago, it also provided the stock market with a flat return for the year and a closest thing to a selloff since the housing crisis two years before that.  Last week’s market weakness may be starting to reflect

09-SEPTEMBER 12-2021

Here’s to a better YOU … and now … Today’s DarrenDaily Recap Sunday.  A collection of the weeks videos from Darren Hardy.  Enjoy! Describing its beauty!!!  Fishing boats on the River Gwaun at Lower Town in Fishguard on the Pembrokeshire coast in Wales,U.K. It doesn’t matter how you get there … only that you come to visit! September 12, 2020 Whew! This year has definitely been one for the books. Between the “illness”, unrest, and just general uncertainty 2020 can move anytime! But, you know what really helps me when things get super overwhelming? Gratitude. Staying focused on the things

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