02-FEBRUARY 28-2022

Stay In ShapeGood morning.
Last week saw natural gas futures prices in Europe soar 40 percent the morning after Russia invaded Ukraine.  And tanker rates on routes that service Russian oil soared six-fold in the space of a day.
These kinds of events are extreme, but they do happen.  However, most investors aren’t prepared for extreme swings, instead expecting a more orderly move in the markets.  That’s why traders may want to consider hedging any position that could be susceptible to a large downswing.  Or look to buy an inexpensive insurance, such as a put option on a market index.
That doesn’t mean completely changing a trading outlook… but it does reflect that uncertainty can cause big swings, and being able to leverage a small position into a big win while other trades are floundering may be a solid strategy for these tumultuous times.

Precious Metals 02-25-2022

Now here’s the rest of the news:

Could the Fed Kill Gold with Rate Hikes?  History Gives Us the Answer
Why does gold face a supposed headwind when interest rate hiking cycles happen?  Is it fundamentals?  As Adam Hamilton notes, it is little more than panic… [Read Here]

February 28, 2021

“Yesterday’s home runs don’t win today’s games.” –Babe Ruth

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: Lots of things to-do in and see, such as a Humpback Whale off the coast of Newfoundland, Canada.

Newfoundland-is-the-sight-of-many-whales

Our sea neighbour!

February 28, 2020

GeniusGood morning.
The coronavirus fears have led to one of the fastest market declines in history.  In the span of one week, the market has slid nearly 12 percent, hitting correction territory.
On a technical basis, things look even worse.  Shares have gone from trading over their 50-day moving average to testing the 200-day moving average.  We expect the market decline to slow after the recent beating, and start to trade in a range until the fears subside.  But if the market closes materially lower from that average, stocks could be in for a painful time.

February 28, 2017

Life

In 1939, a young trader named John Templeton bought a bunch of stocks trading around $1 a share.

Four years later, he didn’t just become a millionaire…

He became a billionaire, even though some of the companies barely budged.

And he spent the rest of his life living in the sunny, carefree Bahamas.

REW

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Come From Aways, Do You?

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05-MAY 15-2022

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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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