ALWAYS CONSULT YOUR INVESTMENT PROFESSIONAL BEFORE MAKING ANY INVESTMENT DECISION
November 26, 2021 | The Bank of Canada is Ignoring the Risks
Recently the Deputy Governor of the Bank of Canada, Paul Beaudry, made a speech about the resilience of the Canadian financial system. He discussed several serious vulnerabilities threatening the system but claims that financial institutions will be fine, even if those risks trigger a financial crisis. Is the Bank of Canada ignoring the risks? The speech was […]
November 26, 2021 | Rough Patch in Bubble-Land
International stocks and commodities are tied at the hip in liquidation selling today, as usual, reminding yet again that different coloured jellybeans in different product wrappers do not offer meaningful risk diversification. Cryptos, too: no hold of value here, folks. As expected, risk sellers are heading to government bonds and out of commodity-centric currencies like […]
November 26, 2021 | Historical Trends Suggest A Strengthening Bullish Trend In December
I received many messages and emails asking my opinions related to the recent market volatility and sideways trending in the US markets. Many traders see the recent downward price trend as a warning of a potential shift in trends. Yet, I see it as normal November volatility in price and wanted to share some data […]
November 26, 2021 | Red Friday: A Little Dip and Already the Crybabies on Wall Street are Clamoring for the Fed to Soothe their Pain
Stock markets closed at 1 p.m. today, and there wasn’t enough time to rectify this evil situation that has emerged on Black Friday, when stocks were supposed to be meandering higher on very low volume, driven by a few algos that would make sure stocks meandered higher to easily book another winning day and a […]
November 25, 2021 | Turn off the TV
(Click on image for higher resolution) An image is circulating online that shows how the mainstream media has garnered viewers over the past 20 years. The three pillars of rhetoric are logos (logic), pathos (trust), and ethos (emotions). The media has been using all three of these persuasion tactics so that people are too afraid […]
November 25, 2021 | Interest Rates Do Not Reflect Inflation
We got a string of new data this past week confirming inflation in consumer goods, and housing are proving to be more than transitory. Canada’s consumer price index continued to drift higher with prices hitting an 18 year high, up 4.7% from last October. The recent floods in BC are already creating significant food and […]
November 25, 2021 | Leverage on Leverage on Leverage…
The reckless obsession with maximizing capital risk and indebtedness under the guise of “investing” is sure to end in financial carnage. Historical precedents are unambiguous. When this carbuncle blows, we will be trying to patch financial holes for years to come. Cautionary evidence is everywhere. The recent Calpers decision is just one more egregious example, see: Leverage […]
November 25, 2021 | Global Warning on the Greatest Financial Mania in History
The first step is to identify what the key market action really is. With America’s change from a pro-business to a socialist administration, the popular alarm has been that “Inflation is back!”, as in the 1970s. Even more hysterical is that some “name” hedge fund managers have been calling for “Hyperinflation”, as afflicted Germany in the […]
November 24, 2021 | Shipping Container Price Surge Will Result in Increased Prices on Consumer Goods
The United Nations Conference on Trade and Development (UNCTAD) announced that we should expect consumer prices to rise 1.5% on average over the next year due to the global shipping crisis. Inflation, fuel increases, and labor shortages are among the many factors that have caused shipping costs to spike. “UNCTAD’s analysis shows that the current […]
November 24, 2021 | More Consequences of the Fed’s Actions
BALTIMORE, MARYLAND – A news flash. You’ll recall that it was only 18 months ago that the world had so much oil, its price fell below zero. CNN Business: US crude finished April 20, 2020, at minus-$37 a barrel, blowing past the zero mark that few imagined would ever be crossed. Negative oil is the […]
November 24, 2021 | Erosion Beneath Euphoria
Treasury yields rose initially on news that Fed Chair Powell has the nod for a second term. Apparently, Powell–who’s endlessly sought to boost animal spirits and his portfolio at every market yip–is now a hawk that will raise rates through a global downturn and tanking risk markets in 2022. LOL indeed. With the five most […]
November 24, 2021 | Financial ETF Sector XLF Pullback Sets Up A New $43.60 Upside Target
The recent downward price rotation in the Financial Sector ETF (XLF) may have frightened some traders. My research, however, suggests this move is setting up a future bullish price target near $43.60 – a more than +11% move. The end of the year Christmas Rally phase of the markets should drive spending and Q4:2021 expectations […]
November 23, 2021 | Is Australia Preparing Concentration Camps for the Unvaccinated?
Rumors are swirling on the internet that the Australian Army is herding the unvaccinated population into “quarantine camps.” The army is not currently hunting down the vaccinated, yet, but there is a suspicious amount of funds going toward these quarantine facilities. The Guardian has reported that $130 million was recently invested by the Northern Territory […]
November 23, 2021 | McKinsey: Inflated Asset Prices Leave Economy and Net Worth Vulnerable
A McKinsey report published this week examines how productively we are using global ‘wealth,’ and the conclusion is, not very. While global net worth (asset prices- liabilities) has tripled since 2000, the increase mainly reflects financialized gains in assets, especially real estate, rather than investment in productive activities that expand economic momentum and well-being. As financial assets […]
November 22, 2021 | Most Americans Will Die Penniless
It is a depressing reality, but around 73% of Americans will die with debt, according to a 2016 poll by Credit.com. The average amount of outstanding debt at the time of the report was an alarming $61,554.00 per person. Around 68% of those studied had credit card debt, 37% had mortgage debt, and 6% died […]
November 22, 2021 | Congress Passes Biden’s Latest $1.2 Trillion “Infrastructure” Deal
BALTIMORE, MARYLAND – Sit down. Remain calm. Let’s try to figure this out… The big news on Friday was that the House got together and passed Joe Biden’s social spending program. Nancy Pelosi congratulated herself: [The package] is a spectacular agenda for the future, with transformational action on health care, family care and climate that […]
November 22, 2021 | Leland: China Slowing More Than People Think
China’s economy is slowing more than people think and the outlook is for weaker growth going forward as the government is unlikely to step in with significant stimulus, according to Leland Miller, chief executive officer of China Beige Book. “The third quarter was particularly brutal” for China’s economy, Miller said Friday on Bloomberg Television in […]
November 21, 2021 | Millennials Priced Out of Home Ownership
Why do 20% of Millennials (25-40-year-olds) in the US believe homeownership is completely unobtainable? To start, rentals across the US are on the rise. The Fair Market Rents (FMRs) compile data every year to determine the cost of the 40th percentile gross rents for typical, non-substandard rental units. This means that the majority of rental […]
November 21, 2021 | The Emerging Alt-Economy: “Buy Nothing”
Most of us own too much unnecessary stuff and have borrowed waaayyy too much money to buy said stuff. Meanwhile, all that debt is boosting inflation, making things that actually matter harder to afford. But free people have a way of self-organizing solutions to their problems, and one of the more inspiring examples is the […]
November 21, 2021 | The Old ‘Flight to Safety’ Story
Did you notice last week’s tone change? The whole, eternally benighted world of pundits, economists, Bloomberg news producers, forecasters et al. has been disbelieving the bond rally as the Fed’s ultimately unredeemable portfolio of Treasury debt has grown from merely massive to intergalactic in size. Now the talking heads are having to change their […]
November 21, 2021 | Shortages Are Relative
n some simplistic economic theories, shortages never happen. Supply and demand for any particular good are always perfectly balanced in a given time and place. If you can’t get what you demand at that moment, you pay a higher price or you demand something else. But that’s theory. The real world doesn’t respond instantly, so […]
November 20, 2021 | Germany Looking for Full Lockdown
Sources in Germany are all warning that the government intends to impose mandatory vaccines following the ruthless actions of Austra. The Governor of Bavaria, Germany, Markus Soeder, is also for mandatory vaccinations. I have been warning that Schwab is in control of Europe. The central bank is trapped and cannot escape its negative interest rates […]
November 20, 2021 | Trading Desk Notes For November 20, 2021
A handful of BIG cap tech stocks make all the difference The DJIA and the small-cap indices closed lower for two consecutive weeks (the DJIA fell as much as 1,000 points from last week’s high to this week’s low) – but the Nasdaq and the S+P 500 indices hit new All-Time Highs this week. The […]
November 19, 2021 | What to Expect When the Government Ignores Consequences
Fish gotta swim Birds gotta fly Rain gotta fall And it’s gotta go somewhere – Bill Bonner, with apologies to the writers of Showboat BALTIMORE, MARYLAND – When you see someone setting fire to a federal building, shouldn’t you say something? And what if the matches and gas can are in your own hands? The Federal […]
November 19, 2021 | Pending Black Swan?
The traditional analysis keeps calling for the next Black Swan event asserting that massive leveraging of US nonfinancial businesses since 1972 is incompatible with the stock market levels rising from 62% to 204% of GDP. Of course, this analysis is ALWAYS the typical economist view which is the entire problem. The traditional analysis is why we are […]