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11-NOVEMBER 17-2021

non-comprehensive nodsGood morning.
In the late 1990s, investors couldn’t get enough of Internet stocks.  The technology was transformative.  But the market priced in a 20-year trend too quickly, resulting in the tech bubble.  The peak happened around the time that Pets.com, a website designed around pet food shopping, went public years before the company was likely to ever earn a profit.  In the ensuing crash, it went bankrupt.
Today’s most bubble-like trend?  Electric vehicle stocks.  Rivian (RIVN), which went public just last week, now has a market cap greater than Volkswagen (VWAGY).  Sure, Rivian has some great products on the drawing board.  But it’s now become the world’s largest company to have zero sales.
In a market crash or any tech uncertainty, it could become the next Pets.com.  If they can to the Tesla Motors (TSLA) route and ramp up production, today’s current market valuation will be justified in time.  But at the moment, the stock looks like a sign of how heated the market has become.

Now here’s the rest of the news:

Bidenflation Is the Next Pandemic –Alfredo Ortiz, MSNBCTV
This painful inflation is a result of Biden and Democratic spending of trillions of dollars.  To top it off, the $1.2 trillion infrastructure-in-name-only bill only makes matters worse… [Read Here]

November 17, 2020

Say-YES-to-ChangeGood morning.
So far, the market is shrugging off a rising number of cities and states looking to lock down their economies again.  Why?  Because markets are forward-looking.  And with not just one, but now two potential vaccines underway, markets are looking forward to the spring.  That’s when the vaccines should be widely available.
Don’t expect smooth sailing.  With many proclaiming a “second wave,” expect some turbulence in the markets before any vaccine can come to market.  Fortunately, turbulence just means more trading opportunities.

Now here’s the rest of the news:

 

 

November 17, 2019

                                                                               Good morning.
We're ExcitedIn a year of failed IPOs that saw a decline in valuation from the first day of trading, a number of bankers went to Saudi Arabia to discuss their concerns that Saudi Aramco’s IPO would be nowhere near the $2 trillion valuation the Kingdom expects.

But here’s the kicker: The bankers, who had a 10-minute meeting with company leaders, were first kept waiting for five hours.  That’s hardly conducive to building a good working relationship, and we wouldn’t be surprised if the Aramco IPO was, once again, pulled or otherwise further cut back.

Saying ‘No’ to a client can be uncomfortable, and so says Darren Hardy in today’s post…

Good, or good?  😉

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Come From Aways, Do You?

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05-MAY 13-2022

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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

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05-MAY 10-2022

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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

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