07-JULY 16-2021

LawGood morning.
It’s easy to bash the Federal Reserve.  They have a dual mandate, to keep unemployment down and prices stable.  That’s usually a trade-off in the best of times.  With the unique challenges of a pandemic, it’s no surprise that it’s an even bigger challenge than usual.
When testifying before Congress on Thursday, Fed Chairman Jerome Powell stated that he’s “not concerned” with the rising costs of living.  In a world where inflation in transitory, that’s no surprise.  In the real world, where people have to put food on the table, though, such statements come off as elitist and out of touch with the needs of average, everyday Americans.  Given the central bank’s “say anything to keep markets going” attitude, traders should continue to expect some volatility this earnings season.

Now here’s the rest of the news:

Dear President Biden, You Need an Education, Starting With the Meaning of “Free” –Mike Shedlock,Mish Talk
Many of us are tired of paying for government-sponsored “free” stuff with our tax dollars.  I graciously volunteer my time for free (no cost to anyone) to teach you the true meaning of “free”… [Read Here]

July 16, 2020

Executive Order of the President

Good morning.
It’s been four days of the big names of Tech failing to lead the way.  The Nasdaq must be feeling unloved.
With vaccine news dominating the headlines on Wednesday and last Friday’s Gilead news, it’s provided the one-two punch that has lifted value names led by the Industrials and Material sectors.  We’ve seen this same story play out, but does the addition of banks provide staying power to lift stocks through the rest of summer without the Big 5?  Only time will tell.

Now here’s the rest of the news:

Don’t Give Up on Gold, Silver and Platinum
“I would recommend investors to hold at least a part of their money in precious metals.” –Marc Faber

July 16, 2019

Gain A Competitive Advantage

Hope you enjoyed Darren’s message as much as I did!  😉

Come From Aways, Do You?

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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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