09-SEPTEMBER 03-2021

Your Account Maybe OverdrawnGood morning.
There’s two ways to improve your wealth quickly.  The first is to cut down on spending.  The second is to earn more.  In today’s economy, both are the easiest they’ve been in years.
For reducing spending, it’s still a great time to refinance a home.  Doing so can save hundreds of dollars per month, and interest rates have come off the higher levels that persisted earlier in the year, a trend that may not last forever.
For earning more, the job market has more openings than unemployed right now, a level still elevated from the pandemic.  Finding a new job paying 20-30 percent more than the old one is a much faster way of earning more than sticking with an employer doling out small “cost of living” increases.  Both moves seem like the best thing to undertake this Labor Day weekend, with an eye towards having more cash flow to put into stocks ahead of the holiday season that is typically a boom for the markets.

Now here’s the rest of the news:

Biden’s Budget Review Ups 2021 Inflation Forecast to 4.8% But Sticks to “Transitory” Definition –Mike Shedlock,MishTalk
This is economic nonsense.  Could a tax on energy imports and demands for 80% clean energy coupled with tax hikes can be anything but stagflationary? [Read Here]

Warning: Fed Stoking Another Real Estate Bubble That Will Wipe Out Home Equity –Stephanie Landsman,CNBC
“I feel bad for the people who bought homes over the past year because they’re the ones that paid the very elevated prices,” Boockvar said.  A 10% correction would… [Read Here]

September 03, 2020

Personal DayGood morning.
Sometimes there can be too much of a good thing.  That’s essentially what Baillie Gifford & Co, Tesla’s largest outside shareholder, said on Wednesday as they reduced their stake in the company from 6.32% to 4.25%.
The company cited the need to take profits as the weight of their tesla holdings had exceeded their guidelines.  Makes sense given the stock is up over 400% this year.
The recognition of the need to take profits is probably hitting a lot of investors right now and if you weren’t thinking it before, you are now.

Now here’s the rest of the news:

Lately, the almighty greenback isn’t looking too indomitable.
The U.S. Dollar Index (“DXY”) is down 10% from its recent high in March.  That peak was just before the Federal Reserve drove down interest rates to a record low.  Now, the U.S. dollar is the weakest it has been since April 2018.  And as an investor, you need to take notice…
When the dollar is weak, everything America imports becomes more expensive.  And we all know America loves to buy stuff made by other countries.
It’s not just stuff made by China, either.  When combined, imports from Canada, Mexico, Japan, and Germany are worth twice the value of goods shipped in from China.  In total, the U.S. imported $1.1 trillion worth of goods in the first six months of 2020.  And it only sold $690 billion to other countries.
If the dollar had held its highest value reached in March, America’s import bill would be smaller by tens of billions…  But it didn’t.  Instead, it fell 10%.  Now, everything that Americans buy abroad is that much more expensive in dollar terms.
It’s also why, despite China’s increasing purchases of U.S. goods, the trade deficit between the two countries isn’t going down nearly as fast.
Like the hot weather, most people will complain about the weak dollar.  But instead of complaining, I recommend that you act.  And I don’t recommend you buy gold…  Sure, gold has been an obvious choice when the dollar falls.  It’s obvious because when the dollar falls, commodities – like gold – see their dollar prices rise to compensate.
Since March, gold has gained roughly 34% in dollar terms – much higher than the 10% drop in the U.S. dollar index.  Silver has done even better, soaring by about 140%.  But there’s another asset that does well when the dollar is falling.  Moreover, unlike gold or silver, this investment’s rally is just getting started.
I’m talking about stocks in emerging markets.  These economies tend to do well when the dollar is trending down – as it is today.  That’s because most emerging market economies export commodities and natural resources.  So a falling dollar means they make more money for exporting things like gold, silver, iron ore, and copper… as these assets rise in price.
These countries also tend to have large debts denominated in U.S. dollars.  In times like these, they can pay less of their own currency to service their dollar debts.
Finally, emerging markets typically don’t have an advanced manufacturing industry.  They buy finished goods – like automobiles, televisions, and laptop computers – from overseas.  And these goods are usually priced in U.S. dollars.  A falling dollar is a win-win-win for emerging markets.  And those benefits can boost their stock markets in a big way.
You can see this by looking at the iShares MSCI Emerging Markets Fund (EEM), an exchange-traded fund that tracks emerging markets.  When DXY lost 17% from March 2009 to April 2011, this fund rallied 136%.  More recently, when the DXY slid almost 10% from the start of 2016 to the start of 2018, EEM leaped 62%.  But these gains in EEM were both outdone when DXY fell 24% from April 2003 to November 2007.  That time, EEM soared 365% during the same period, while gold managed to only double.  Keep in mind, these powerful rallies in the emerging markets took, on average, about three years to play out.  So, even with the dollar down 10% and emerging market stocks up 45% since March… this predictable trend of profits is just in its infancy.  But it won’t be for long.

September 03, 2019

Entrepreneurs and Intrepreneurs

The dictionary defines an entrepreneur as a person who organizes, operates and assumes the risk for a business venture.

Our New Economy demands an entrepreneurial spirit.

back_to_school_bus

It used to be that employers didn’t want entrepreneurs working for them.  They were afraid the entrepreneurial type would leave after being trained up — perhaps even become a competitor.  Today, progressive employers want entrepreneurs on their staff.  They might not refer to them as entrepreneurs, but that’s what they are.

I call them intrepreneurs — men and women who harbor the entrepreneurial spirit while working in a larger organization.  As more and more good people leave the W-2 world to become free agents, talent, ambition and experience will be that much more in demand.  The wise employer will encourage an independent entrepreneurial spirit.

The employer of the next century will look for ways to attract and nurture their existence.  He or she will set up win-win relationships that allow for independent contracts.  What we really want to do is treat our job like it was our own business.  In doing so, we maximize our value to our employer and at the same time maximize our individual value.

Michael Gerber would remind us of the 5 essential entrepreneurial skills for success, as children head-off to school todayConcentration, Discrimination, Organization, Innovation and Communication.

Learn your lessons well… 😉

September 03, 2018

(zip)

September 03, 2017

Our first full day as we wake up for our FREE hot breakfast at the Best Western (Chocolate Lake Hotel) Halifax, NS.

We went down to the waterfront to look around as we awaited Dione and Cameron to arrive via the Dartmouth/Halifax ferry.

Later WE ALL enjoyed a fabulous lunch before Dione and Cameron returned home!

That evening we toured the Citadel, Towne Clock, and drove to Dartmouth by bridge to view Halifax by night.

We completed the night out at II Trullo Ristorante for an authentic Italian meal.

Got back to the hotel relatively late, knowing we were checking out to go to Liverpool, NS via Peggy’s Cove, Chester, and Lundenburg.  (but that’s for another day!)

REW

IMG_0712
Come From Aways, Do You?

More Posts

01-JANUARY 26-2022

Good morning. In spite of 7 percent inflation rates right now, consumers are continuing to spend.  While their overall confidence has dropped, the actual spending itself shows that the economy, largely dominated by such spending, is likely to continue moving higher this year. If inflation rates start to decline in the coming months, the market could be setting up for a solid return as the current fears abate.  Given the latest data showing that consumers continue to be interested in buying homes, automobiles, and appliances this year, even a small change higher in interest rates will unlikely derail the economy’s

01-JANUARY 25-2022

Good morning. On Friday, the stock market broke its 200-day moving average lower for the first time since July 2020.  Stocks are looking at oversold levels going into the weekend, with many names down much further than the overall stock market index.  But yesterday’s wild trading saw a massive drop reverse into a gain at the close. This reversal could be a sign of capitulation by sellers, and that the worst of the current decline is over.  With leveraged traders already wiped out, and plenty of cash from retail and institutional investors on the sidelines, the market could see a

01-JANUARY 24-2022

Good morning. Markets had $3.3 trillion reasons to be volatile last week.  That was based on the notational value of options expiring on Friday.  That included $1.3 trillion for individual stock positions alone, the second-highest on record.  Traders repositioning those trades ahead of expiration last week may have contributed to the big selloff, which finally started reversing on Friday as Treasury yields started coming back down. Given the growth of options trading, this phenomenon of added volatility into options expiration weeks may continue for the foreseeable future.  While February’s contracts are far lower in value, the next big hump will

01-JANUARY 23-2022

Today! January 23, 2021 “Creativity is an action, not a feeling.  Your work is too important to be left to how you feel today.”  –Seth Godin Power Thought That Raises Awareness Whenever we’re talking about personal transformation — whether it’s physical (lose weight), financial (get out of debt), mental (overcome anxiety), spiritual, relational (repair a broken relationship), etc. — what we’re really talking about is change.  And for most, that can be scary.  In fact, many people don’t even entertain the idea of change until the pain of not changing becomes unbearable. In other words, you have to be ready and willing

01-JANUARY 22-2022

Today! January 22, 2021 Good morning. The trade war.  The pandemic.  The election.  All the big catalysts that can move markets up or down are now off the table.  So what’s next?  Until a new catalyst emerges, expect markets to drift. With markets in a long-term uptrend, the drift will likely be higher.  Individual names can still have some big news on corporate announcements and earnings reports.  And look for potential catalysts that could provide the market’s next big move, whether higher (stimulus) or lower (war, pandemic, today’s high valuations). Now here’s the rest of the news: A “Cash Panic”

01-JANUARY 21-2022

Good morning. Fears of rising inflation are likely to peak this year.  That’s good news.  And with news that major spending bills would be broken up, the likelihood of further fiscal stimulus to drive inflation higher is also likely to help there. In other areas, however, the economy is showing signs of a slowdown.  Jobless claims have risen to a three-month high.  Home sales have slowed after a massive boom in the past 18 months.  And now, expectations are that the trans-Pacific cargo trade are now rising to a three month wait time on average.  With a longer wait time

01-JANUARY 20-2022

Good morning. While the stock market has largely been focused on rising interest rates in the past few weeks, the start to earnings season this week has been subdued.  Many of the big banks have started to report numbers.  And banks should be faring well even with higher rates of inflation going on right now. However, bank earnings have overall been lacklustre, as many banks have reported trading losses that have offset the gains made from a big year for mergers and IPOs. If bank earnings aren’t enough to get the markets excited and moving higher, chances are we’re in

Like this article?

Share on facebook
Share on Facebook
Share on twitter
Share on Twitter
Share on linkedin
Share on Linkdin
Share on pinterest
Share on Pinterest

Leave a comment

Send Us A Message