02-FEBRUARY 25-2022

Accounting PracticesGood morning.
Russia’s invasion of the Ukraine had started to be priced into the stock market in recent days.  That may explain part of yesterday’s wild ride in the markets, where the Nasdaq managed to cross into positive territory late-morning after being down as much as 3 percent pre-market.
That big intra-day swing indicates that traders are looking to reposition into different stocks here, rather than simply cash out and sit on the sidelines.  The invasion also makes it likely that monetary policy won’t tighten up as quickly as stocks have priced in during the past few months.
The takeaway?  There’s still a lot of uncertainty.  But traders can continue to profit on the long side with commodity stocks, particularly for precious metals and oil.  But don’t be surprised if there’s a relief rally in heavily oversold tech stocks in the coming days on top of Thursday’s reversal either.

Now here’s the rest of the news:

Billionaire Investor Warns About Incoming Speculation Bubble Pop
Billionaire investor David Einhorn asserted that the speculative bubble in markets peaked last February, and warned the Federal Reserve might struggle to rein in inflation, speaking in a recent two-part interview.  He also predicted a US economic… [Read Here]

Wall Street Hits Jaw-Dropping Instability Thanks To Putin
With the chaos in Eastern Europe stealing the attention on news networks all day, the S&P 500 gapped into official correction territory this morning, went green, then collapsed.  That is a huge warning sign for anyone willing to pay attention. [Read Here]

February 25, 2021

Business-DemandGood morning.
For years, financial advisors have told investors to hold on tight when markets are dropping – and when possible to add when things are down.  Market fears can sometimes be short-lived, even when valuations and other reasons for fear persist.
That appears to be the case with the latest weakness in the tech space.  MicroStrategy (MSTR) reported that it bought the dip in Bitcoin, picking up $1 billion.  And the much-watched tech fund Ark Invest sold shares of Apple (AAPL) to buy shares of Tesla Motors (TSLA) when the firm dropped 10 percent on Tuesday.

Have you bought the recent dip in tech (or Bitcoin) this week?

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

Now here’s the rest of the news:

Famous Big Short Investor Michael Burry Warns Weimar-Like Hyperinflation Is Coming To America –Dana Sanchez
“Prepare for inflation,” Burry tweeted.  He compares Germany’s 1920s hyperinflation to the U.S.  He suggested he expects a market crash within months…

February 25, 2020

half as good as youGood morning.
While out touting the latest quarterly numbers at Berkshire Hathaway, billionaire investor Warren Buffett stated that he had no plans to buy or sell shares of anything simply because of the coronavirus outbreak.
Of course, Buffett is sitting on over $100 billion in cash at the moment, so a market downturn would allow him to buy up some great companies at more reasonable prices.  We’ll be watching Buffett’s actions, but appreciate his soothing words during this trying time for stocks.

 

February 25, 2019

I’m still working at get my ‘image’ out there!  Hope you don’t mind the musical interruption…

Cleavage Lovers … Enjoy!  😉

IMG_0712
Come From Aways, Do You?

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05-MAY 14-2022

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05-MAY 13-2022

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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

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05-MAY 10-2022

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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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