NewCover with LOGO

10-OCTOBER 06-2023

Economics 101Good morning.  In the past two weeks, bond investors have been selling off, pushing yields higher.  While higher yields may attract investors in time, it could mean trouble for those who have been holding bonds.  One institution holding bonds has been the banks.  They weren’t too happy to lend out money when rates were low, given the potential risks.  But now they’re seeing the pain of investing in “risk-free” Treasuries when rates rise.
One estimate puts the losses close to $700 billion with the current surge in rates.  If banks can hold those bonds to maturity, there’s no problem.  But holding unrealized losses could lead to liquidity issues, which may lead to a credit crunch.  Investors may want to scale back any holdings of bank shares.  Should a panic break out, they can be bought back more cheaply.  And traders may want to look at long-dated put options on regional banks, which may have the most exposure to rising yields, not to mention their exposure to commercial real estate.

Now here’s the rest of the news:

Powell Gets An Earful From Small Businesses
After helping build a floor under the economy during the pandemic only to put a squeeze on it as inflation soared, Federal Reserve Chair Jerome Powell on Monday faced a public he’d warned would go through painful times as the central bank hiked interest rates… [Read Here]

Home Ownership A Thing Of The Past? RFK Jr. Reveals Insider Info
Housing affordability has been a pressing issue in America.  While many people point to supply shortages, rising material costs and stagnant wages as drivers behind the crisis, Democratic presidential candidate Robert F. Kennedy Jr. believes there’s… [Read Here]

October 06, 2022

OptomisticGood morning.
While financial markets move on every whisper that comes out of a Federal Reserve President, the real world runs on energy.  So it’s no surprise that the OPEC+ announcement to cut 2 million barrels of oil per day caused oil prices to rise.
However, that also has real-world impacts.  For most, that starts at the gas pump.  But any thing that’s delivered by a motor vehicle like a truck, from the groceries on your self to your latest online order will cost more with higher fuel prices for shipping.
That’s just one reason why inflation will likely continue running at a faster pace than most are expecting right now.  And why investors should continue to be cautious here, especially after the market’s quick jump higher in the past few days.

Now here’s the rest of the news:

America’s Elite Are Having A Spending Spree With Your Money
In many ways, this is still the most overstimulated economy ever, and it’s not wanting to come down because there is still all this cash from the Fed’s and the government’s stimulus floating around.  So here is an example.  California has…[Read Here]

The Most Inflationary Asset Reaches The Highest Price Ever
Gas prices in Los Angeles County reached a record high Monday as the cost for a gallon of regular increased eight-tenths of a cent overnight to $6.467, according to data from the American Automobile Association.  The previous high was…[Read Here]

October 06, 2021

Happy Birthday 2021Good morning.
It’s hard to pinpoint an exact bottom when the market is declining.  Big rally days like Tuesday can be the start of a recovery, or a pause before the next drop lower.  Technical indicators can help point out what’s likely to happen next.
Following Monday’s drop, a number of indices had broken under short-term trend lines.  While that’s usually a bad sign, the move higher Tuesday undid some of the damage.  More importantly, the longer-term trend line held on the tech-heavy Invesco QQQ Trust (QQQ) right at the 10 percent pullback level.
Holding that trend is a sign that the worst may be over for now.  But given the number of market dangers in the next few weeks, it’ll still be a bumpy ride with no guarantee of a quick move higher.

Now here’s the rest of the news:

Key Inflation Gauge Watched by the Federal Reserve Hits Yet Another 30-Year High –Jeff Cox, CNBC
The highest inflation since 1991 is the result of economic pressures Fed Chairman Jerome Powell called “frustrating,” and it’s not getting better… [Read Here]

October 06, 2020

Actually DoneGood morning.
Many analysts still expect some market volatility ahead of the election.  And chances are it’s still a tight race.
Yes, a WSJ/NBC poll over the weekend gave former Vice President Joe Biden a staggering 14-point lead over President Trump.  However, many have pointed out that the poll methodology appears to be overstating Democratic voters compared to actual results in recent elections.  The real market volatility may not be known until the election is over, but a big drop seems unlikely.

Now here’s the rest of the news:


October 06, 2019

Shared Thoughts…

“You wouldn’t have the dream if you didn’t already have what it takes to make it happen.”
—Marie Forleo

A Whole New WorldSelling future benefits is hard.  No one wants to buy life insurance.  No one wants to exercise for months to get fit.  Humans worry about now.  Tomorrow?  Ah, let’s not worry about that now.

What can we say to change this?  How do we get our prospects to think about the future?  Let’s try some better messages now.

Health: “Getting older?  Yes, it is coming.  And there will be a huge gap between the people with great health, enjoying their lives and those trapped in the medical system of doctor appointments, paper-work, and frustration.”

Saving for retirement: “With our current jobs, it is already too late to save enough for our retirement.  We missed our chance by not saving 20% of our salaries when we were 25 years old.  That means we either work the rest of our lives until we die or, start a small part-time business now, so we will have plenty of money when we want to retire.”

Skin care: “Got wrinkles now?  Then they are our wrinkles for life.  But we can stop new wrinkles from forming with this.  Do you think now is a good time to prevent more wrinkles?”

Utilities: “Still overpaying on those utility bills?  Let’s get online now and stop them from overcharging you again next month.”

It is fun to get prospects to think of the future, but also to act on the future.
We just have to give our prospects a better message…  🙂

Come From Aways, Do You?

More Posts

02-FEBRUARY 26-2024

Today I started another book, “Everything I Know About Success I Learned From Napoleon Hill” by Don M Green. Now here’s the rest of the

02-FEBRUARY 25-2024

Today!         February 25, 2023 Bio-Replenishment is the innate ability of a living organism to continuously refill its expended (depleted) chemicals that

02-FEBRUARY 24-2024

Today!       February 24, 2023 Good morning. The next market downturn may already be here.  This week saw manufacturing data show a continued

02-FEBRUARY 23-2024

Today! Now here’s the rest of the news: IRS Issues Announcement On Tax Refunds Tax refunds so far this year are noticeably smaller than they

02-FEBRUARY 22-2024

Today we are reading “Bio-Replenishment for Bone Health” by AS Naidu which is turning out-to-be a slower technical read. Now here’s the rest of the

02-FEBRUARY 21-2024

Today I start taking iron supplements! Now here’s the rest of the news: More Soaring Costs For Americans Auto insurance is up more than 20

02-FEBRUARY 20-2024

Today is a school day… which means I’m on-the-bus! Now here’s the rest of the news: The American Dream Is Dead. And THIS Is What

Like this article?

Share on Facebook
Share on Twitter
Share on Linkdin
Share on Pinterest

Leave a comment

Send Us A Message