02-FEBRUARY 23-2021

GuiltyGood morning.
A growing number of analysts are calling the stock market a bubble.  That’s based on a number of factors, such as corporate earnings or sales relative to price.  There’s also the Buffett Indicator, showing that the value of the total stock market is $49.2 trillion, but annualized GDP is $21.9 trillion.  That gives a total stock valuation of 224 percent of the current economy, a level that, historically, is well into overvalued territory.
But the funny thing about bubbles is how much higher they can go.  And with interest rates near zero, the real question is whether the bond market, which has $17 trillion of assets with zero percent or even negative yields, is in worse shape on a valuation basis than the stock market.

What’s the bigger bubble – stocks or bonds?

Hit “Reply” to this email and let us know what you think!

Now here’s the rest of the news:

The Fed Triggered an Insatiable Demand for the Riskiest Corporate Debt –Mike Shedlock
Not only are these purchases illegal, they’re leveraging their equity 7 to 1 for below-investment-grade corporate bonds.  Result?  Investors are buying junk bonds at low yields…

February 23, 2020

Price Alert!  As this post is being finalized, gold & silver are making massive moves higher.

Marketing CampaignGood Morning.
One analyst sees Bitcoin surging more than double in the next few months.  The reason?  For the first time in years, the cryptocurrency 50-day moving average has risen over the 200-day moving average.
That’s a bullish technical indicator called a golden cross.  And if that trend is true (and with cryptocurrencies it is hard to tell), some see Bitcoin heading as high as $26,000.  Why?  Be-cause the last golden cross in Bitcoin led to 170% surge.  The numbers may be optimistic, but Bitcoin is still in an uptrend.

Today is DarrenDaily Recap Sunday.  A collection of the weeks videos from Darren Hardy.  Enjoy!

…and two more fabulous pictures of Newfoundland … A place I soon will live forever!

Newfoundland _7&8

February 23, 2019

Create a WordPress Membership Site with MemberPress

Look what I was taught to do in a manner of minutes with new-found-friend Robert Plank.  Check Robert’s instructional video below … if interested!

I’ve got the biggest smile on my face, right now, ’cause I’m not very techie at all … so if I ever have to watch this again, I just have to come back here and watch it.  I only see one hang-up however!  Should YouTube decide to deny access, or Robert Plant deletes this tutorial, it is gone!  😉

February 23, 2017

Ketchup2

Why Efficiency Sucks!

When it comes to efficiency, well, who doesn’t want that?  Better gas milage, a washing machine that uses less water, light bulbs that use less electricity…

As investors, we are trained to love productivity and efficiency.  On the productivity front, a company that gets more output from its employees is typically a more profitable company.  If you have one person doing the job of two, well, costs are lower, which means profits will be higher, right?

Again, investors always value productivity and efficiency.  But in the bigger picture, is there any way to factor the fate of the 9,500 employee that were fired into the value equation?

Do we really need a Heinz ketchup AND a Kraft Ketchup?  I understand the free market argument here.  Capitalism is all about ownership…

Would YOU have approved the Heinz and Kraft merger?

REW

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Come From Aways, Do You?

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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

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