10-OCTOBER 26-2021

Halloween HorrorGood morning.
When it comes to taxation, the government’s vision is based on movement.  It’s not until you make a move and take a gain that your paper profits become real, and therefore taxable.  That’s a key reason why Warren Buffett’s favorite holding period is forever.
But that may soon change, thanks to a proposed billionaire’s tax.  To fund the latest spending programs, the government is looking at taxing billionaires, or those who made more than $100 million in income for three years in a row, on unrealized gains.  Rather than hold forever, these ultra-wealthy may have to start selling off shares to pay taxes they would be charged for not selling off shares.
While that sounds roundabout, it could lead to a wave of selling that would hit everyday Americans in their 401k or IRAs as well.  While wealth inequality is an issue, this top-down approach could kill the markets and make all worse off rather than better redistribute wealth.  Keep an eye on the passage of this tax.  It may not happen this year, but it’s now on the table in future years when it may be more politically viable.

Now here’s the rest of the news:

I’m A Twenty Year Truck Driver, I Will Tell You Why America’s “Shipping Crisis” Will Not End –Ryan Johnson, Medium
I have a simple question for every ‘expert’ who thinks they understand the shipping crisis: Why is there only one crane for every 50–100 trucks at every port in America? [Read Here]

Silver Fuse Is Burning…
“With this, the narrative will change from a we are not worried, it is transitory to a we need to deal with it where inflation is concerned.  Therefore, this could easily be the fire to the fuse of the silver rocket.” –Korbinian Koller [Read More]

October 26, 2020

Get What?Good morning.
For all the predicted election volatility, we’re not seeing it yet.  In fact, the market’s sideways turn in recent sessions looks more like a sailing ship stuck in windless doldrums.
But, again, beyond the headline numbers for stocks, it’s still earnings season.  And companies that have thrived during the pandemic are continuing to do well.  For the rest, it’s really a function of whether or not things have been as bad as expected… or worse.  Chances are we’ll get a stronger market trend after next week’s election.  The real question is how many days it will take for the outcome to be clear.

Now here’s the rest of the news:

 

 

October 26, 2019

How are you doing with those Daily Activities?

Reminding you with repetition … and … connecting with DarrenDaily is essential.

Come on RockStar … move it!  😉

IMG_0712
Come From Aways, Do You?

More Posts

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

Like this article?

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

Leave a comment

Send Us A Message