05-MAY 05-2022

Really Big IdeaGood morning.
The Federal Reserve has raised interest rates again – essentially pumping the brakes on the economy by raising the cost to borrow.  Yet the economy has already been slowing.  The combination of today’s slowing growth and rising inflation is looking increasingly like stagflation.
If the 1970s are any guide – and history only rhymes – it’s clear that commodities will continue to rise in price.  Investors can likely wait out rising inflation with commodities, but should look to cash out as prices rise.  But the 1970s also saw the rise of companies like Intel (INTC), Walmart (WMT), and Microsoft (MSFT).
So investors should still look for young, fast-growing companies that don’t seem affected by the overall macro environment for the best returns in the years ahead.

Now here’s the rest of the news:

CBO Releases A Shocking National Debt Report
A new CBO report shows that the longer Congress waits to deal with the debt, the bigger the problem becomes.  Getting a handle on America’s massive debt will only be more difficult if lawmakers keep postponing the effort.  In a new report, the CBO said… [Read Here]

Another Household Necessity Is About To Skyrocket In Price
While inflation, which hit 8.5 percent in March, gets more attention, the financial markets are also suffering.  With the Nasdaq having its worst month since 2008 and the S&P 500 having its worst start to a year since the Great Depression… [Read Here]

May 05, 2021

MessagesGood morning.
It’s been a great earnings season.  But companies like Amazon (AMZN) are now in correction territory, down 10 percent, since reporting record blowout numbers.  Other big tech names are in the same spot.  And smaller tech plays?  They’re likely already in a bear market.
It’s a combination of factors at work.  The first is rising inflation numbers. The second is the prospect of higher interest rates to curb inflation.  And finally there’s the fact that companies are coming off of earnings that look great compared to a year ago at the start of the pandemic.  All these factors suggest some caution, as a further selloff may be ahead.  But if history is any guide, a modest correction in the 10 percent range is likely the maximum.

Now here’s the rest of the news:

Politicians Invent New Retirement “Solutions” That Don’t Make Any Sense
If the Social Security Trust’s shortfalls aren’t addressed, it’ll be in big trouble just over a decade from now.  Pensions are at risk, too.  Here’s how you can protect your retirement from a committee cancelation… [Read Here]

Inflation Outpacing Economic Growth, Threatens to Strangle Fledgling Recovery
Across the board, companies are raising prices.  Their costs are higher.  That means we pay higher prices, getting less for every dollar we spend.  Based on the numbers, it’s likely to get a lot worse very soon… [Read Here]

May 05, 2020

Turning the “Lock Down” into freedom for life.                                

Shingles doesn't care
“But on the positive side, money can’t buy happiness — so who cares?”

Good Morning.
After wilting into the end of last week, it was the big cap tech names that held prices up early until other sectors could come around.
Financial were weak early being down nearly 3%, but only finished off less than 1% by the end of the session.
Was it the “force” of May the 4th that shone through, or is this a tone that’s being set for a rally the rest of the week?  Probably the latter, as the market seems poised to retest last week’s high.
Question: “Would you hire you?”

May 05, 2019

How I Do Anything is How I Do Everything
(Say this 3 times today)

Often, when students first come to us, they are disappointed with the current results they are getting in their lives.  I get it.  That constant feeling of taking one step forward and then two steps back sucks.  It’s frustrating when we don’t reach the goals we set or to watch other people succeed while we aren’t.
So, what makes the difference?  What I have found with people either becoming “successful” or not comes down to 3 factors… and NONE of them have to do with tactics, tools, or strategies for success.  If you can embrace these 3 factors, then progress towards your goals and dreams becomes natural and almost effortless.

So, what 3 factors were we talking about?  Well,  WATCH ABOVE and take notes!

IMG_0712
Come From Aways, Do You?

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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

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