02-FEBRUARY 23-2022

Attention GetterGood morning.
News headlines have flipped from an imminent Russian “invasion” of the Ukraine to something a bit softer.  President Biden used the term “minor incursion,” after Russian troops moved to secure two independent regions of the Ukraine that declared their independence.
Given that these regions have allied with Russia, the word invasion now seems inappropriate.  News headlines have dropped things down to a “crisis” or a “situation.”  Both words suggest a more peaceful outcome than last week.
The good news?  Going from a hard invasion to a geopolitical transition, even a tense one, greatly reduces the risk of a shooting war.  That should allow markets to complete retesting the January bottom, and move on after a significant correction that started in November.

Now here’s the rest of the news:

What Investors Get Wrong About Gold’s True Value
Wharton finance professor Urban Jermann proposed that investors and market participants have been misinterpreting the true value of gold as an investment asset.  In particular, more attention should… [Read Here]

Expert Wan That Oil Prices And War Could Mean Economic Disaster
As escalating tensions between Russia and Ukraine pushed oil prices to seven-year highs Tuesday, the threat of military conflict in the region also fueled strong price gains for a slew of other commodities, prompting some analysts to warn that… [Read Here]

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

IMG_0712
Come From Aways, Do You?

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05-MAY 14-2022

Today! May 14, 2021 Good morning. One year ago, oil prices went negative as traders feared that the pandemic would lead to prolonged drops in oil use and got caught in trades they couldn’t get out of.  Today, oil and gasoline prices have held up well in inventory reports.  However, supply issues remain in the South and up and down the East Coast, even as Colonial pipeline paid a $5 million ransom to the hackers who shut down their system.  A number of states have declared emergencies as supplies have run low. It just goes to show that oil, one

05-MAY 13-2022

Good morning. Meme stocks are back!  Well, sort of. A spike in companies like AMC Entertainment (AMC) and GameStop (GME) occurred yesterday.  GameStop was even halted multiple times on the way up (but not on the way down).  Oddly, this may be an early sign that markets are looking for a short-term bottom, given the sharp reversals higher. On CNBC, analyst Jim Cramer came out against the traders of meme stocks using sites like Reddit’s Wall Street Bets, to find the meme stock opportunities in the first place.  Tough words for someone whose television show features sound effects.  But for

05-MAY 12-2022

Good morning. The good news?  Inflation has slightly slowed on a year-over-year basis, for the first time in seven months.  The bad news?  It’s still high at 8.3 percent.  And it came in higher than expectations. Looking at the data shows some reasons for the unexpected strength.  Most components of CPI still rose more than 6 percent in April.  But soaring food prices – which we’ve warned about fairly often — were a big contributor.  Another big move higher was record airfare prices, as high fuel costs and a reopened economy drove prices up. The data doesn’t give too much

05-MAY 11-2022

Good morning. Typically, growth stocks lead the market.  That’s because these companies have the ability to scale up rapidly, and one of the best signs of a stock heading higher over the long haul is increased earnings. Yet every few years, value stocks have their time to shine.  A year ago, Warren Buffett’s performance as being derided.  Yet he’s buying stocks now.  In contrast, Ark Innovation, the hypergrowth fund managed by Cathie Wood, is now not just down relative to Buffett — but it’s underperforming the S&P 500 since its inception. Can these trends reverse in time?  Yes.  Will they

05-MAY 10-2022

Good morning. Any econ 101 student can tell you that there’s a lag effect between something like, say, the creation of trillions of dollars in spending, and inflation rates reflecting that.  We’re seeing that trend play out today, with the highest inflation levels in decades. The good news?  Some of that new money first went to financial markets, rather than in goods and services.  That helped keep many things affordable, especially during the initial lockdown phase of the pandemic.  But today, we’re seeing the impacts of those past lockdowns (and current ones).  And we’re seeing that handing out money directly

05-MAY 09-2022

Good morning. People don’t mind inflation when it hits things like assets.  When stocks and home prices are rising, consumers feel wealthier.  This “wealth effect” tends to be beneficial to spending, which then become a self-fulfilling prophecy. The 2009-2020 market rally started with this effect.  The bank bailouts propped up the banks, but didn’t cause inflation on Main Street.  Today, thanks to the stimulus measures during the pandemic, Main Street went on a spending binge.  That’s caused a reverse wealth effect as the prices of goods like food and utilities are rising at a rapid rate — but now asset

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