11-NOVEMBER 12-2021

Strategic Plan_20Good morning.
There’s an old Wall Street adage that a bull market doesn’t die of old age.  What does kill a bull market is when traders are all-in at the top and there aren’t any buyers left at absurd valuations.  Is that the case right now?  Probably not yet, given the amount of cash on the sidelines.
But we’re likely a step closer.  That’s based on the fact that one of the world’s most bearish hedge funds is closing up shop.  Russell Clark Management, a fund based on an overall short position in the market, is closing down.  That’s in spite of a short-term trading record that saw the fund make a profit most months, until the fund lost 35 percent in 2019, when markets had a strong rally.
With one less bearish voice out there, there’s less caution for bullish investors in the months ahead, which may indicate an eventual end to the current market rally next year.

Now here’s the rest of the news:

 

 

November 12, 2020

Yo Yo MarketsGood morning.
Nothing ever moves in a straight line.  After two days of sharply declining, tech stocks rebounded on Wednesday.  The same stay-at-home tech trades that have fared well this year got a breather as news of high virus cases continued to come.  It also didn’t hurt these companies that a number of areas are looking to increase mask mandates and limit operations once again.
This lingering fear, coming so quickly on the heels of the announcement of a successful Covid vaccine, underscores how quick the market is to move on a piece of news — even if that news could take months to play out.

Now here’s the rest of the news:

It’s becoming clearer every day that the next ‘credit collapse’ is just around the corner…
According to credit-ratings agency Standard & Poors (S&P), 124 U.S. companies have defaulted on their debt so far this year.  But it’s going to get much worse… another 240 companies in the U.S. will go bankrupt over the next year.

November 12, 2019

People are not black or white!  No one person is 100% detail-oriented or the “in-a-nutshell” type.
You ask, “Shall we proceed or would you like more details?”

If they answer:

“Let’s get right to it.”  —  This means they want the big picture, and they don’t want to burden them-selves with knowing every specific detail of your product or service.  They think and act quickly, so you can persuade easily by simply emphasizing the main benefits and getting straight to the point.

“I’d like to study your proposal first before making my decision.”  —  This means they want to know all the facts, evidences, instructions, or details before jumping into any conclusion.  They are prone to analyze and be meticulous with details, so you can persuade them by giving them full documentations.

When persuading anyone, remember that you should always state your message in terms of their specific values and mindset.  Remember that they are always asking, “What’s in it for me?”  😉

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