11-NOVEMBER 02-2021

A Minute Please!Good morning.
Billionaires with most of their wealth tied up in a stock are often able to simply borrow against their holdings.  This avoids having to pay taxes on unrealized gains, and provides millions of dollars in “walking around” money while still profiting if those shares rise in value.  It takes a lot to get a billionaire to sell a meaningful amount of their shares.
But that’s the offer made by Tesla Motors (TSLA) CEO Elon Musk over the weekend.  He offered to sell $6 billion in shares and give it to the UN’s World Food Program.  The catch?  The agency would have to detail exactly how that money would be spent to end world hunger, rather than simply indefinitely continue operations as so many agencies created to combat a problem often do.
Anyone betting that Musk will have a tax bill on a $6 billion share sale anytime soon just doesn’t understand how these agencies operate.

Now here’s the rest of the news:

November 02, 2020

Guess WhoGood morning.
October once again proved to be a challenging month for stocks.  For 2020, it came in second to March.  The final drop came as many big-name tech companies reported good earnings.  Great earnings would have been better.  And it also didn’t help that many of these companies can’t offer much in the way of guidance in these uncertain times.
Many traders see that trend continuing.  While the election is tomorrow, a few pundits are pointing to contested elections that may drag out the final results for weeks.  That uncertainty could add additional volatility to stocks until it’s resolved.  Don’t worry, though.  Markets always find something to worry about.  So once the election uncertainty ends, it’ll be something else.  Today’s fear-based moves, however, are enough to make one wish for the China trade war volatility of 2019.

Now here’s the rest of the news:

Since making new highs this September, the Dow is down roughly 10% – just a day before the election.  And if the election is contested … the market could be in turmoil for weeks, maybe even months.
Do the best you can to make hay while the sun is shining.  But be aware that the storm clouds that are building right now are the most serious our ‘country’ has ever seen.

November 02, 2019

We usually like a challenge … a puzzle … and DarrenDaily provides us with one today!

Good or Great!  😉

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