ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
April 14, 2022 | Higher Costs Weighing on Canadian Households
The Bank of Canada doubled its overnight lending rate this week to 1% and is expected to move it above 2.5% by year-end. The interest cost on floating rate loans moves with the BOC rate, so each .50% increase adds about $500 per year for each 100k of floating rate debt. In short, rate hikes […]
April 14, 2022 | Weaponized Dollar May Explode in America’s Face
From Brian McGlinchey’s Stark Realities Substack: There’s much to despise about economic sanctions. Aside from the fundamental immorality of making innocent individuals suffer for the sins of governments, sanctions almost universally fail to achieve the goals of those who inflict them. Nonetheless, sanctions have become the knee-jerk U.S. government response to any real or claimed foreign misdeed. According […]
April 14, 2022 | The Many Uses of Option Delta
In an option chain, the delta for a given option strike price can vary from -1 to +1. Call options have a positive delta for option buyers somewhere between 0 and +1. Calls increase in value when the underlying increases in value. Put options have a negative delta somewhere between 0 and -1 as Put […]
April 14, 2022 | Inflation, Interest Rates, Elon Musk
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April 14, 2022 | Inflation, Real Estate Bubble, Mortgage Rates
Banks, Bonds, Baltic Dry Index
April 14, 2022 | Inflation, Interest Rates, USD, Real Estate
Cryptos, Crude Oil, Copper
April 14, 2022 | American Manganese CTO Discusses Commercial Lithium-ion Battery Recycling Market and Opportunities
RecycLiCo™ Process Focused on the Long-Term Strategy. Watch – Overview of Major Equipment at the RecycLiCo™ Lithium-ion Battery Recycling-Upcycling Demonstration Plant. Read Electrek Article – “Tesla ‘Might’ Now Get Into Lithium Mining Business Due To ‘Insane’ Price Surge Even Though It’s Already Supposed To Be In It“. Read Surrey Now Article – “BC Tops in North […]
April 13, 2022 | The Supply Chain Crisis Will Worsen
The supply chain issues across the world are continually worsening due to government mismanagement. It seems as if there are sinister intentions at play, as these new restrictions seem to be a deliberate attempt to destroy the global economy. California’s far-left politicians only implement laws to hurt the people. The California Air Resources Board (CARB) […]
April 13, 2022 | The Fed Is Scared $h*tless
From Quoth the Raven “Commentary out of the Fed over the last few weeks indicates to me that our central bankers know they are doing far too little, far too late.” The events in monetary policy over the last few weeks have reminded me of an article I wrote almost 4 years ago to the […]
April 13, 2022 | Misery Index, Russia/Ukraine
Inflation, Inverted Yield Curve
April 13, 2022 | Slowing Economy Suggests Bond Sell-Off Overdone
Spikes in agriculture, fossil fuels and housing (housing makes up a third of CPI) pushed inflation (a lagging indicator) in March to the highest reading in 40 years. Amid negative real wages, consumers have less cash for everything, and corporate profit margins are under pressure. Add in a rate shock–the bond market has already sold […]
April 13, 2022 | The Rising Price of a Sandwich
The above illustration shows how much more expensive sandwiches have become in the last 12 months ending March 2022. Those percentages are based on actual price changes that have occurred compared to a year ago. Yet according to the government inflation figures from the Bureau of Labor Statistics, the cost of food in the […]
April 13, 2022 | Front-Running the Fed: Bank of Canada Hikes 50 Basis Points to 1.0%, Starts Official QT. Unofficial QT Already Shrank Assets by 15%
The Bank of Canada, after telegraphing it for weeks, hiked its overnight rate by 50 basis points today, the first 50-basis-point hike since 2000, after having hiked by 25 basis points at its March meeting. This brought its overnight rate to 1.0%. “Interest rates will need to rise further,” governor Tiff Macklem said in the […]
April 12, 2022 | Stop Blaming Putin for Inflation
The Consumer Price Index soared 8.5% in March year-on-year, according to the report released by the Labor Department on Tuesday. Prices have not been this inflated since Reagan was in power in December 1981. Former Fed Chair Ben Bernanke set the target level of inflation at 2% back in 2012. Once the Federal Reserve began […]
April 12, 2022 | Which Leads to Doom, Which Leads to Revival: Free Money or Frugality?
From Charles Hugh Smith’s Of Two Minds blog: Clinging to delusional fantasies of “free wealth” won’t lead to positive outcomes, any more than swallowing handfuls of meds leads to “free health.” Under various guises, labels and rationalizations, “free money” has now been established as the default policy fix for any problem. Stock market falters? The solution: […]
April 12, 2022 | Utilities Rising & Transporters Sinking – Sector Rotation Is Providing Clues
Historically, investors gravitate toward more defensive and commodity-focused sectors, such as precious metals, energy, commodities, and utilities, in late-cycle bull markets. Recently, the stock market is beginning to show us signs that the bull market may be coming to an end. Commodities such as energy, grains, and precious metals have all experienced nice rallies. Price […]
April 12, 2022 | Will 5% Mortgage Rates Tank the Housing Market?
The average 30-year fixed mortgage rate spiked to 5.02% on April 5th, the highest since November 2018. Rates have gone from 2.73% to over 5% since August 2021. That’s a record percentage rate increase over an eight month period. Monthly mortgage payments have abruptly jumped up by 25.8%. And rates are likely to go […]
April 11, 2022 | Are Democrats Going to Dump Biden?
COMMENT: Marty, I remember that your computer was projecting that the president in this term would not finish. You said that you did not see Trump finishing a second term and I think you said you did not think Trump would win. Tucker is clearly talking now that the Democrats are looking to dump […]
April 11, 2022 | Three Ways to The End of The World
“Green Radicals Claim Humanity Has Only 3 Years Left To Stop ‘Climate Apocalypse’: Fast Track To Disaster”
April 11, 2022 | Fast Price Moves Break Things
Gasoline prices leapt 45% over the past year, and the UN Food and Agriculture food price index, rose 34 percent to an all-time high in March (shown below since 2001). In the process, expectations for central bank rate hikes have triggered an abrupt sell-off in financial markets. As shown below, courtesy of Bloomberg and Lance Roberts, US aggregate bond […]
April 11, 2022 | The Real Lesson of LME Nickel
The recent debacle in LME nickel led to the London Metals Exchange breaking trades and defaulting on contract terms. Press coverage has been detailed and this offering from CNN is among the most comprehensive. The culprit who caused this market debacle was “Mr. Big Shot” – head of the Chinese steel and nickel producer Tsingshan Holding Group […]
April 11, 2022 | Headline Grabbers
The Federal Government unveiled an updated budget this past week, and it included a wide range of housing policies. While many of these were good headline grabbers, some of them will never see the light of day, and others lack any real substance. Let’s dissect some of them further. Foreign Buyer Ban The media took […]
April 11, 2022 | Washington Debates Cryptocurrency Rules, With Sights Set on Stablecoins
From the Wall Street Journal: As Washington attempts to get its arms around the rapidly growing cryptocurrency industry, policy makers in the Biden administration and on Capitol Hill have identified stablecoins as an initial target for tighter regulation. Often billed as one-to-one representations of a currency like the dollar, stablecoins have recently exploded in popularity […]
April 10, 2022 | Why Zelensky is a Neo-Nazi & a Jewish FRAUD
There have been some people who assumed that Zelensky is Jewish and therefore he cannot possibly be a Neo-Nazi. Many in Israel are deeply disturbed by his claims to be Jewish when he married a non-Jew and his children are baptized in the Russian Orthodox Church he wants now banned. Zelensky before the war would […]
April 10, 2022 | The Wizards Cannot Hold Down the Dollar
For more than a year, I’ve recommended what my friend Doug Behnfield calls the ‘barbell strategy’ to secure one’s nest egg against the deflationary hard times that lie ahead. As formulated by Doug, a wealth-management advisor based in Boulder, the barbell portfolio is constructed with gold and bonds as offsets. Try to imagine the […]