Good morning. When markets appear to be shifting, as we’ve started to see over the past week, it’s important to ask the right questions. The most important, if not only, question is to ask where the best returns are from here.
Is it from stocks following a market-beating return in the first half of the year? Probably not. Typically the summer sees a market pullback going into the fall on a seasonal basis.
Could it come from bonds? Possibly. Interest rates are at their highest levels in over 15 years in the U.S. That’s not helpful for borrowers. But for lenders, parking cash in short-term Treasury bills at a 5 percent yield looks attractive when your bank yields 1-2 percent and the market already had a big run.
Investors may want to take some risky stocks off the table, and take advantage of fixed-income, particularly if we’re just about done with a rate hike cycle. Fixed-income prices will soar the next time interest rates get cut… for whatever reason.
Now here’s the rest of the news:
U.S. Job Market Suffers A Sudden Collapse
U.S. job openings fell to the lowest level in more than two years in June, but remained at levels consistent with tight labor market conditions, which could spur the Federal Reserve to keep interest rates elevated for some time… [Read Here]
August 11, 2022
It finally happened. After months of rising higher and higher on an annualized basis, inflation has finally cracked. While the market liked the read of “only” an 8.5 percent year-over-year increase, it’s still incredibly high by any standard.
And inflation is cumulative. So the longer it’s higher than average, the more destructive it will be for investors over time. While it’s a sign of good news, getting inflation down faster still means the economy will need to see a bigger slowdown from where it’s at now.
So while markets jumped on the news, it’s possible that as the reality of higher inflation than expected for longer could easily lead to another market pullback. That’s just another reason for traders to stay cautious and look for downside opportunities.
Now here’s the rest of the news:
Analyst: Markets Are “Fighting the Fed”
During the money-printing binge and interest rate repression starting in March 2020, the Wall Street hype organs repeated this endlessly, “Don’t fight the Fed.” If the Federal Reserve cuts interest rates and prints money, then asset prices are going to… [Read Here]
Top Investors Say Inflation Is “Just Getting Started”
Nearly half of investors say they’re stressed out over inflation and that it has still not peaked, according to a survey by State Street Global Advisors, signaling low morale as markets digest signals that the US may be headed into a recession… [Read Here]
August 11, 2021
“Fake it ‘til you make it,” is a good way for building confidence when starting out in one’s career. But the truth is, the mentality is a huge part of the economy. That’s seen in a number of economic measures, such as those that look into what’s called confidence.
While consumer confidence is the best-known, small business confidence is pointing to a yellow flag for the economy right now. Rising inflation, sliding profit margins, and a labor shortage are a trifecta of pain for these firms. These businesses were the worst hit by the pandemic lockdowns, but they’re also companies without the same access to capital markets as publicly-traded stocks.
Delta variant or not, big businesses are likely to get bigger, and they’re the ones already traded. So the latest business confidence data shouldn’t shy investors away from the stock market.
Now here’s the rest of the news:
The Folly of Ruling Out a Collapse –Dr. John P. Hussman, Strategic Advisors
Among all the bubbles in economic history, none has so thoroughly embraced the belief that extended losses are impossible than today’s. And no forecasts are required to know what’s coming… [Read Here]
August 11, 2020
Over the past few trading sessions, it’s been clear that the bulls are looking to make a run at value stocks after the trade stalling out in early June. Makes sense as the mega-cap tech stocks are reaching nosebleed territory. That means that industrial, financial and cyclicals may start to catch a bid in the coming weeks. Whether the bulls can continue to run free is unclear, but what is clear is where they’re looking to go.
Here’s the rest of the story:
Silver’s Rally Is Far From Over –Chris Igou,True Wealth
Silver hit its cheapest price in 40 years relative to gold a few months back. The metal was lagging behind gold in a big way. And as I explained to DailyWealth readers in May, this meant one thing… Silver would come back with a vengeance. That’s exactly what happened. Silver is up 58% since I shared that opportunity. Meanwhile, gold is only up 18%.
We Got Fired! … And It’s the Best Thing That Ever Happened to Us
Many people have lost their jobs during this pandemic though no fault of their own.
Pat Mitchell was the first woman president and CEO of PBS at the time. She had been working as a researcher/writer for Look Magazine when it went out of business. Her advice was: “Be determined … I was deter-mined not to give up. I figured it would all come around if I could find a way to survive financially while I stayed focused on what I wanted. It didn’t come easily. If you look at my resume, it seems like one exciting jump from one run to the next. Every one of those moves was somewhat of a risk. Some didn’t work out as I planned or hoped. I didn’t follow a straight line to get where I am, but I never went backward either.” She added: “Seize every chance you have to learn. It’s amazing how many skills we seem to acquire by accident.”
[Pat’s story, like many others are within the pages of this great inspiring book! … a must read.]
August 11, 2019
The concept of the smart factory has been around for quite some time. But technology and connectivity limitations have held back development. Until now.
5G Paves the Way
The Consumer Technology Association says 5G will allow you to download a two-hour movie in just 3.6 seconds, versus six minutes on current networks. But 5G is much bigger than just movie down-loads. It is expected to propel innovation across multiple fields, including transportation, healthcare, defence, consumer electronics and appliances, agriculture, shipping and warehousing, education… the list goes on. Just imagine what knowledge could-be-share and wisdom acknowledged?
Capitalism is best described by the term creative destruction, first described by economist Joseph Schumpeter. The term indicates that new technologies can replace old ones – possibly ones that seem entrenched and incapable of innovation. Of course, not all new technologies work out.
The Hyperloop, an attempt at faster, safer transportation, just set a record 288 mph in a recent test. Some parts were lost along the way – a generous term for an explosion that occurred. This form of creative destruction is certainly both creative and destructive.
We’ll let someone else do the first human tests… 😉
August 11, 2017
Making money online or offline is really simple. Making money with a home business is also simple. If that were true, why do so many of these secondary businesses at home fail to make money?
It’s because the majority of those who try, can’t focus on one thing for long enough to see it work before they’ve moved on to the next. I’m going to meet with (these five people) and show (each one of them) how they can save money on their taxes. Before they know it they’re checking email, posting pictures on Facebook, chatting on the phone, and wasting time watching YouTube. Not because they are bad people! But because there was no clear amount of time allocated to the task. What was the task?
Meeting and showing these specific people “the tax advantages they are missing.” But instead — they’ve been very busy for those three hours, but haven’t been even slightly productive. What you’ll find most difficult is knowing which tasks actually bring in the money. That where we come in…