08-AUGUST 18-2021

Summer Fun_79Good morning.
Every few years, some big names on Wall Street disclose that they’re on opposite sides of a big trade.  One of the last such clashes involved billionaires Carl Icahn and Bill Ackman over Herbalife (HLF). While usually focused on one stock, these clashes can sometimes be bigger…
Case in point: “Big short” investor Michael Burry has decided to go short ARK Funds, run by Cathie Wood.  ARK looks for innovation and big-picture trends that can lead to massive returns, but likely has a lot of volatility behind it.  Wood tweeted that she respects Burry’s views on the disconnect on the housing market back in the day, but that innovative technologies are another matter than the housing market.  Time will tell who is right, and given the way the market fluctuates, both titans will likely have multiple opportunities to declare victory.

Now here’s the rest of the news:

U.S. Economic Growth Suddenly Collapses –Tyler Durden,ZeroHedge
Goldman Sachs strategist Chris Hussey provided a particularly brutal assessment in a market research note titled simply “not good.”  Here’s why… [Read Here]

August 18, 2020

Cut-cut-cut...Good morning.
It was John Maynard Keynes that referred to the gold standard as a “barbarous relic.”  For someone that was profoundly interested in printing money, the thought of having a run on gold reserves was too restrictive.
Another critical investor of gold, Warren Buffett, just bought shares of Barrick Gold Corp (NYSE: GOLD) through Berkshire Hathaway.  This doesn’t exactly mean that he suddenly sees value in owning gold as an investment, but it does indicate the potential value of gold stocks in an age of massive spending, monetization and a weaker U.S. dollar.

Now here’s the rest of the news:

This Rare Market Event Points to More Stock Gains
Multiple breakouts like this rarely happen at the time…
In the past month, we saw new highs in stocks, bonds, and gold.  And if you’re like most investors, this probably has you puzzled.
Stocks and bonds tend to move opposite each other, afier all.  And gold is always a wild card.  Sometimes it moves higher when stocks fall, and sometimes it doesn’t.
So, to have a situation like this… with all three hitting new highs together… is dam rare.  It’s also a good sign for all three assets — and for stocks in particular

Let me explain…

It’s true that when you find a market in a strong uptrend, it often goes on to make even higher highs.  That’s the power of what investors call “trend following.”
Still, when you see multiple assets break out, you need to further examine what’s going on.  And that’s the case today, as gold, bonds, and the Nasdaq all hit new 12-month highs last month.
This is not a common occurrence.  You’ll usually see bonds rally while stocks fall… or gold jump higher as bonds go nowhere.
Rarely do gold, bonds, and stocks all break out to new highs at the same time.
These are very different asset classes, after all.  Today is different, though.  These three assets recently broke out together.  And the synchronized move led to new highs for each one in July.

August 18, 2019

“Action that springs from a beautiful state leaves ripples across the planet.” @pkconsciousness

I’ve always been fascinated by stories of spectacular achievement.  My library is filled with books about people of great accomplishment.  It’s easy to admire those who have overcome difficult circumstances — people who have taken great risks and won.

“Most people look to avoid risk; the greater risk is not going for it.”

Going For It

Sharpen the AxeIf there is so much veneration for those who go for the brass ring, why are there so few people willing to take the risk?  One of the reasons is that we care too much about what others think.

The I-told-you-sos and knew-it-wouldn’t-works are always going to be around.  I call them dream killers.  Perhaps they’re placed here to test whether or not we’re really serious about our goals.  There’s often great risk and pain involved in going for your dreams.  But if it were easy, then everyone would do it.  It wouldn’t be exceptional.  There’s risk either way.  And I think there’s even greater risk and suffering in not going for it.

No doubt about it, putting yourself out there and telling the world what you’re going to do is scary!  What if you don’t succeed and everyone sees you fail?  What then?  The truth is, most people don’t think about you anywhere near as much as you might think.  Most people think of themselves.  And, oftentimes, the people who are the most critical are actually secretly wishing they had the guts to do what you’re doing.  “Today, you have 100% of your life left!” — Tom Hopkins

Don’t wait for the perfect time.  It won’t ever come.  😉

IMG_0712
Come From Aways, Do You?

More Posts

08-AUGUST 17-2022

Good morning. The pandemic and ongoing supply chain issues that stemmed from it have reversed a 40-year trend of globalization.  That trend created a level of efficiency that arguably acted deflationary by keeping prices from rising as much as they would have otherwise. Today, the trend is de-globalization as supply chains return home.  These forces are inflationary, as they result in many supply chains instead of one large global one.  That can benefit some, such as those who would not have had a job in their home country otherwise.  But it also means higher prices for goods and services.  That’s

08-AUGUST 16-2022

Good morning. Last year, we cautioned that low interest rates and historically low mortgage rates wouldn’t last.  If you timed the bottom in rates last year perfectly, mortgage rates were about half of what they are today.  As that trend looks to continue higher, housing is starting to show signs of slowing down as well. For those who own their homes, that may mean a drop in the home’s value.  If you’re not looking to sell anytime soon, that’s not a problem.  But for investors, this can mean an opportunity to get into the housing market in the next few

08-AUGUST 15-2022

Good morning. The market rally of the past few weeks has helped take stocks off their recent lows.  On Friday, stocks recovered a full 50 percent of their losses from the market top. Many traders view a 50 percent retracement as a sign that a market rally is sustainable, and not just a bear market rally that could end up leading stocks lower.  In short, this is the strongest “all clear” signal yet following weeks of the market trending higher. While this is usually a bullish sign… such signals also tend to occur when interest rates are falling or flat,

08-AUGUST 14-2022

We can almost taste the sea air… St. John’s, NFLD. August 14, 2021 10 Benefits of Helping Others “Be helpful.  If you see a person without a smile, give him one of yours.” –Zig Ziglar Volunteering your time, money, or energy to help others doesn’t just make the world better – it also makes you better.  Studies indicate that the very act of giving back to the community boosts your happiness, health, and sense of well-being. Here are 10 benefits of lending a helping hand.  1. Helping others feels good.  There is some evidence to suggest that when you help

08-AUGUST 13-2022

Today! August 13, 2021 Good morning. The latest jobs numbers are looking good, with fewer new claims being filed and unemployment dropping.  But there’s a critical mismatch: There are still over 10 million job openings and as many as 12 million still receiving some kind of unemployment benefit. The Fed has committed to keeping the monetary spigot open while the labor market is under full employment, but some will always be between work or unable to work.  This mismatch may start to resolve itself later in the year, as extended federal unemployment benefits end in states that didn’t end the

08-AUGUST 12-2022

Good morning. Oil prices have been driven by an imbalance between supply and demand for the past few years.  While OPEC has looked to gradually raise output, the cartel is now expecting markets to move into surplus this year.  That’s in contrast to other estimates right now. OPEC’s research may be the first step towards moving to cut its total output, potentially later in the year by likely some time in 2023.  That could help put a floor under oil, which has ranged as low as $90 recently after getting as high as $120 earlier in the year. While oil

08-AUGUST 11-2022

Good morning. It finally happened.  After months of rising higher and higher on an annualized basis, inflation has finally cracked.  While the market liked the read of “only” an 8.5 percent year-over-year increase, it’s still incredibly high by any standard. And inflation is cumulative.  So the longer it’s higher than average, the more destructive it will be for investors over time.  While it’s a sign of good news, getting inflation down faster still means the economy will need to see a bigger slowdown from where it’s at now. So while markets jumped on the news, it’s possible that as the

Like this article?

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

Leave a comment

Send Us A Message