Good morning.
Throughout 2021 and 2022, we mentioned that one of the best financial moves to make would be to refinance your home mortgage while they were near historic rates. Rates have moved closer to their historic average over the past 50 years, but still aren’t there yet… even after doubling off of the lows.
Meanwhile, banks are tightening lending standards across the board. It’s not just the family home, but car loans, business loans, and all sorts of other activity. Typically, in a tight market, only those who don’t need a loan can get it. This move is at odds with the Fed’s “soft landing” scenario. We still seem to be moving towards a slowing economy, with still-high inflation.
Traders may want to look at overpriced financial stocks for some cheap put options to buy in the weeks ahead. Any trouble in the credit markets could lead to a quick drop for bank and other financial stocks.
Now here’s the rest of the news:
Is The Service Sector Weak Or Strong?
There are hugely conflicting reports on the strength of U.S. services. For example, the ISM and S&P reports are diffusion indexes, signaling direction not amount. And a firm hiring 10 workers combined with a firm laying off 200 workers balances out… [Read Here]
Goldman Sachs Gets Desperate For New Customers
Goldman Sachs’ online bank, Marcus, is offering an interest rate on its savings accounts that is 350 times the interest rate being offered by its competitors, JPMorgan Chase and Bank of America. That’s not normal. Not normal at all… [Read Here]
February 09, 2022
Good morning.
Most stock investors or options traders pay little attention to the credit markets. But that’s an area where a large amount of capital is parked, and where investors tend to be more cautious. That can create a number of warning signals ahead of a big market drop.
The recent rise in Treasury yields, particularly the 10-year note, has been about all the news from the credit market hitting the overall news cycle. However, overall yield curves are flatting and potentially inverting, with longer-dated Treasuries yielding lower than shorter-term Treasuries. That’s been one of the best signs of a market drop a few months in advance.
While it’s not there quite yet, the last time this signaled was in late 2019, just before a sharp (but short) bear market in early 2020. When the next yield curve inversion does hit, it’s a sign that markets have more downside potential than upside potential ahead.
Now here’s the rest of the news:
A Total Economic Collapse Could Happen This Month And Here’s The Proof
Teetering on a precipice can seem exciting until something comes along that knocks you over the edge. Unfortunately, the events of the past two years have perfectly set the stage for a global economic collapse of unprecedented size. [Read Here]
War Possibility Causes Investors To Rush For Safety
Unnerved by the saber-rattling between about Ukraine, traders are scouring global markets for investments that could provide them with protection against losses in case the conflict escalates. Any conflict risks triggering a… [Read Here]
February 09, 2021
Good morning.
After a few days of Elon Musk posting about meme cryptocurrency Dogecoin on Twitter, Tesla Motors (TSLA) filed with the SEC that it has invested $1.5 billion in Bitcoin. That caused Bitcoin, not Dogecoin, to rally over 12 percent, to $43,000 per coin.
Tesla joins a number of companies that have moved to embrace Bitcoin in the past few months. It’s this rising institutional and corporate demand that makes the cryptocurrency, like all currencies, an accepted medium of exchange. And, oddly enough, that’s also why cryptocurrencies are becoming less risky. The more parties that accept them, the easier it is to buy and sell. That’s why crypto-related stocks have also been exceptional market performers lately, and why that trend is likely to continue. It’s still an early trend, but with big companies and institutions getting on board, now’s the time to take a closer look at crypto if you haven’t yet.
Now here’s the rest of the news:
Near-Zero Rates Might Sound Good (Until This Happens)
Low interest rates are a hidden-in-plain-sight tax on savers. Many “safe”assets trusted for decades, including bonds, CDs, annuities and savings accounts can’t preserve your purchasing power any more. So you have a choice… [Read Here]
February 09, 2020
Today is DarrenDaily Recap Sunday. A collection of the weeks videos from Darren Hardy. Enjoy!
…and two more great pictures of Newfoundland … A place I soon to be living!
February 09, 2019
Habit #6 — Become Reward-Conscious
[Tomorrow — Habit #7] Day seven, and the last of our Seven Habits of Recovering Procrastinators. 🙂
