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03-MARCH 08-2022

Good morning.
Sanctions, rising inflation, interest rate fears… these are all big-picture issues that operate in both financial markets and the real world.  But the biggest issue for financial markets right now might just be something else: liquidity.
There’s been a bit of a strain on the market, which in turn could lead to wider swings in prices, starting with usually highly liquid markets with lots of players like the Treasury market.  When this market starts to get the volatility of the stock market, it’s usually a sign of big trouble.
For now, traders have been able to meet margin calls with no strain or delay, and overall investors aren’t concerned over big issues, but we could still be in for a lot of volatility in the days ahead, and this problem could worsen before it gets better.  If a hedge fund announces a bankruptcy, or a bank starts reporting massive issues with liquidity, it may be time to prepare for another leg lower for stocks.

Now here’s the rest of the news:

Instead of How Much to Save for Retirement, Ask This
So, how much money do you need to save to enjoy a long and stress-free retirement?  That’s a million-dollar question, or at least it might have been in 2006… [Read Here]

Economic Warfare Against Russia Has These Unintended Consequences
Remember when Canada invoked the Emergencies Act to freeze bank accounts of protestors?  What if that happened to an entire country? [Read Here]

March 08, 2021

Want LeadershipGood morning.
The bank stocks have been one of the top-performing sectors lately, holding up even as tech stocks have been beaten down.  But at the end of the month, that could all change.  That’s because of a rule called the supplementary leverage ratio, or SLR.  It allowed banks to use Treasuries as assets during the worst of the pandemic last year.
If the SLR exemption isn’t continued, banks will have to hold more capital as reserves against their treasury positions and deposits kept with the Fed.  That could lead to a scramble for cash, which could make the recent market weakness extend well beyond the tech space.  Fed Chairman Jerome Powell had a chance to address this on Thursday’s interview, but failed to do so.

Will the financials be the next sector to have wild volatility – or even a bear market?

Hit reply and let us know your thoughts.

Now here’s the rest of the news:

Gold and Bitcoin Can Co-Exist as Inflation Hedges 
Both are used for protection against inflation, and neither is likely to displace the other.  Gold is more liquid and has a larger role in the monetary system.  But the real difference between the two is the types of savers who choose them… [Read Here]

March 08, 2020

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

I’ll leave you with another picture from Gander, NFLD.

Gander, Newfoundland

March 08, 2019

 

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Come From Aways, Do You?

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05-MAY 14-2022

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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

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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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