03-MARCH 04-2022

Jump, for what?Good morning.
Social media platform Reddit came onto the map for investors last year with retail traders using the space to tout stocks like AMC Entertainment (AMC) and GameStop (GME), as well as to post winning or losing options trades.
Now, users on the platform are moving heavily into Ukrainian war bonds.  The besieged country used the first round of war bonds to pay $300 million on the existing sovereign debt, but they’re looking to raise another $1.3 billion in financial assistance from the EU.
While the loss of a war could mean a total wipeout on the bonds, at a current price of about 26 cents on the dollar, a victory could mean a four-fold payoff, in addition to any interest payments.  Of course, that payoff would be in Ukrainian hryvnia, which could also be heavily diluted.  Nevertheless… traders who are interested could get option-like returns from the usually “safe money” bond market right now.

Now here’s the rest of the news:

Officials Get Desperate, Use One Last Strategy To Avoid A Crisis
Oil continued to soar after a decision by major economies to coordinate a last ditch effort to avoid what many experts say is unavoidable.  West Texas Intermediate futures in New York rose 8% to settle above $103 a barrel on Tuesday. [Read Here]

March 04, 2021

We Are AccountantsGood morning.
One of the most popular sectors of the markets lately has been SPACs.  That’s short for special purpose acquisition companies.  That’s a fancy, Wall Street way of describing what has also been known as a “blank check” company.
It works like this: The SPAC goes public, then uses the cash from the proceeds to buy a private business.  That merger creates a new company.  If it sounds a bit like a convoluted IPO-type process, you’re not far off the mark.  But thanks to a robust number of private companies looking for cash, it’s quickly exploded into a $700 billion market.  Time will tell if the SPAC boom has the same dangers of the IPO boom of the late 1990s.

Are you betting big on any SPACs?

Hit reply and let us know how your thoughts on the space.

Now here’s the rest of the news:

Biden’s Trumped-Up Rescue Plan Is a Solution Looking For a Problem –John A Tatom, The Hill
“Never let a crisis go to waste.”  Instead, truly shock voters with the size of the problem and spend a massive $1.9 trillion to wage war on – economic inequality? [Read Here]

March 04, 2020

Life can be a bit of a Chess GameGood morning.
What a day in the markets!  Who’d have thought that the Fed stepping in and cutting 0.5% off the Fed Funds Rate would have caused the market to sell-off so dramatically.
I can only imagine how Jerome and the rest of the FOMC members must have felt seeing the market rally for a couple minutes before selling off.
Well, I guess it’s back to the drawing board with the Fed.

CNBC’s Jim Cramer said that the Federal Reserve’s emergency interest rate cut makes him even more concerned about the possible economic risks from the coronavirus.

March 04, 2019

“Instead of spending your time thinking about how bad things are, think about how good they will be!”

Everything is Relative

There is a famous saying: “The grass is always greener on the other side of the fence.”  At times, human beings are not satisfied with what they have.  People seem to do well until, unfortunately, they experience a loss.  Then, usually, they want to be better — to experience the “green grass.”  It’s human nature to always want to be better, to have more.  Isn’t that what is meant by the phrase “dream big?”  At times, dreaming big might be great; however, at other times one should be thankful for what one has.

Consider the story of the 85 year old grandmother taking her 5 year old grandson, Johnny, to the beach for the first time.  She was so excited.  She bought Johnny a brand new complete outfit for his first time at the beach: new cap, new swimsuit, new t-shirt, new shoes and a new sand bucket with a shovel.

They walked to the beach holding hands.  As they got to the sand, Johnny said, “Grandma, because I can’t swim I won’t go near the water; so I’ll just dig up the sand with my new shovel far from the sea.”

However, Johnny had difficulty digging up the hard sand far from the water. Therefore, he said, “Grandma, this sand is too hard.  Can I get close to the water where the sand is easier to dig?”  Johnny quickly added, “But I promise I won’t go in the water.”

Hesitantly, the grandmother looked into Johnny’s begging big eyes and said, “Okay, but promise you won’t go in the water.”

Johnny screamed with glee, “I promise.”  As he was close to the ocean he was having such a good time, digging and digging with ease in the soft sand.  Unfortunately, a huge wave came on the shore and swallowed up little Johnny, taking him out to sea.

With her vigilant eyes, watching him from afar, his grandmother screamed, “Oh my God!  Oh my God!  Help me God!”

Just then, another huge wave thundered onto the beach from the ocean and “spit forth” little Johnny safely back on the shore.

Elated, the grandmother ran toward the boy and tightly hugged her 5 year old grandson.  Wiping tears from her eyes she cried out as she looked toward the heavens, “Thank you God!  Thank you so much!”

She then looked back down at her little sweet Johnny.  She once again quickly looked back at the heavens and screamed, “Hey… Where’s his new cap!?” 😉

IMG_0712
Come From Aways, Do You?

More Posts

05-MAY 15-2022

Today “small town” in Newfoundland is… Salt Harbour. May 15, 2021 Struggling … how to break bad habits? “Nothing is impossible.  The word itself say, ‘I’m possible.’” –Audrey Hepburn There’s no one single reason why we struggle — to break bad habits, achieve our goals, or excel in our desired domain — but more often than not, the biggest challenge is sitting between your two ears. Yes, your mind is incredibly powerful, and quite frankly, it’s a double-edge sword.  The stories you tell yourself, the things you believe about yourself, and the way you talk to yourself can either be

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

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Leave a comment

Send Us A Message