05-MAY 05-2023

Good morning.
Raising interest rates can tighten economic conditions.  But nothing will tighten conditions faster than bank failures.  After a few quiet weeks, we’re seeing a resurgence in bank shares collapsing, largely focusing on banks based out in the West Coast… with the latest issues coming right after the Fed stated that our banking system was safe and secure.
We’re now entering a point in the crisis where trust is being lost in banks – and that’s usually a bank’s most valuable asset.  Companies that have reported normal operations continue to see depositor outflows.  And even if false news reports come out about potential asset sales, a later retraction will be too little, too late.
Investors should bear in mind that their deposits remain safe in any FDIC-insured bank up to $250,000.  But it may be prudent to open or shift capital towards a larger bank to avoid any inconvenience from a bank failure.  And from a trading perspective, bank failures in the headlines will move the market down.  Buying a put option against the market is safer than betting against a weak bank ahead of a sharp move higher, even if such a rally is just temporary.

Now here’s the rest of the news:

Biden Pushes The Dollar Closer To Death
The U.S. government is in danger of running out of money.  Without Congress’s go-ahead for borrowing more, this is likely to happen by July at the latest.  In the past, this has always been resolved.  But how many near scrapes can you survive before your luck runs out? [Read Here]

May 05, 2022

Good morning.
The Federal Reserve has raised interest rates again – essentially pumping the brakes on the economy by raising the cost to borrow.  Yet the economy has already been slowing.  The combination of today’s slowing growth and rising inflation is looking increasingly like stagflation.
If the 1970s are any guide – and history only rhymes – it’s clear that commodities will continue to rise in price.  Investors can likely wait out rising inflation with commodities, but should look to cash out as prices rise.  But the 1970s also saw the rise of companies like Intel (INTC), Walmart (WMT), and Microsoft (MSFT).
So investors should still look for young, fast-growing companies that don’t seem affected by the overall macro environment for the best returns in the years ahead.

Now here’s the rest of the news:

CBO Releases A Shocking National Debt Report
A new CBO report shows that the longer Congress waits to deal with the debt, the bigger the problem becomes.  Getting a handle on America’s massive debt will only be more difficult if lawmakers keep postponing the effort.  In a new report, the CBO said… [Read Here]

Another Household Necessity Is About To Skyrocket In Price
While inflation, which hit 8.5 percent in March, gets more attention, the financial markets are also suffering.  With the Nasdaq having its worst month since 2008 and the S&P 500 having its worst start to a year since the Great Depression… [Read Here]

May 05, 2021

Good morning.
It’s been a great earnings season.  But companies like Amazon (AMZN) are now in correction territory, down 10 percent, since reporting record blowout numbers.  Other big tech names are in the same spot.  And smaller tech plays?  They’re likely already in a bear market.
It’s a combination of factors at work.  The first is rising inflation numbers. The second is the prospect of higher interest rates to curb inflation.  And finally there’s the fact that companies are coming off of earnings that look great compared to a year ago at the start of the pandemic.  All these factors suggest some caution, as a further selloff may be ahead.  But if history is any guide, a modest correction in the 10 percent range is likely the maximum.

Now here’s the rest of the news:

Politicians Invent New Retirement “Solutions” That Don’t Make Any Sense
If the Social Security Trust’s shortfalls aren’t addressed, it’ll be in big trouble just over a decade from now.  Pensions are at risk, too.  Here’s how you can protect your retirement from a committee cancelation… [Read Here]

Inflation Outpacing Economic Growth, Threatens to Strangle Fledgling Recovery
Across the board, companies are raising prices.  Their costs are higher.  That means we pay higher prices, getting less for every dollar we spend.  Based on the numbers, it’s likely to get a lot worse very soon… [Read Here]

May 05, 2020

Turning the “Lock Down” into freedom for life.                                

Good Morning.
After wilting into the end of last week, it was the big cap tech names that held prices up early until other sectors could come around.
Financial were weak early being down nearly 3%, but only finished off less than 1% by the end of the session.
Was it the “force” of May the 4th that shone through, or is this a tone that’s being set for a rally the rest of the week?  Probably the latter, as the market seems poised to retest last week’s high.
Question: “Would you hire you?”

May 05, 2019

How I Do Anything is How I Do Everything
(Say this 3 times today)

Often, when students first come to us, they are disappointed with the current results they are getting in their lives.  I get it.  That constant feeling of taking one step forward and then two steps back sucks.  It’s frustrating when we don’t reach the goals we set or to watch other people succeed while we aren’t.
So, what makes the difference?  What I have found with people either becoming “successful” or not comes down to 3 factors… and NONE of them have to do with tactics, tools, or strategies for success.  If you can embrace these 3 factors, then progress towards your goals and dreams becomes natural and almost effortless.

So, what 3 factors were we talking about?  Well,  WATCH ABOVE and take notes!