Taking risks is no longer necessary to make a return on your savings. Not long ago, “cash is trash” was a common theme as savings accounts yielded zero. Of course, such was the intent of the Federal Reserve following the “financial crisis” in the hope that inflating asset prices would trickle down into economic growth. […]
Conviction (kan-vik-shan): noun, a strong persuasion or belief; the state of being convinced. In life, there are things that we should be convicted and committed to. For example, the love for our families, spouses, and religious beliefs. We can also be convicted about other things, such as political ideologies, social issues, and environmental causes. With […]
An old adage says investors should “Sell May And Go Away.” The historical analysis suggests summer months of the market tend to be the weakest of the year. The mathematical statistics prove this as $10,000 invested in the market from November to April vastly outperformed that amount invested from May through October. Interestingly, the max […]
What can breakeven inflation rates tell us about oil prices, energy stocks, and market direction? It turns out it’s a lot more than you think. Since 2021, as the impact of an economic shutdown collided with $5 Trillion in artificial, stimulus-driven demand, inflation has consumed everything from headlines to financial markets and the Fed’s monetary […]
The media once again presumes that America’s financial negligence will result in a new global reserve currency. As we wrote in The Dollars Death, Not So Fast Part I, “Don’t hold your breath. Headlines forecasting the dollar’s death as the world’s reserve currency have been around for a long time.” While the case for a […]
The vast “cash hoard of 2023” has the bullish media salivating about what it means for the future of equities. That cash hoard in money market funds now exceeds $5.2 trillion. Such has brought forth the age-old narrative that the “money on the sidelines” is set to come into the markets. However, they don’t tell […]
Recession odds have climbed considerably since Jerome Powell’s testimony before Congress and the latest FOMC meeting. However, the recent failures of Silicon Valley Bank (SVB) and Credit Suisse (CS), as higher rates impact regional bank liquidity, also added to the risks. This isn’t the first time we have warned the aggressive rate hiking campaign would […]
Headlines like the ones below lead some to believe that the U.S. dollar’s death may be coming soon. Don’t hold your breath. Headlines forecasting the dollar’s death as the world’s reserve currency have been around for a long time. For those losing sleep that the Chinese yuan, bitcoin, or some other currency will commandeer the […]
Despite media headlines, podcasts, and broadcasts suggesting “doom and gloom” lurks around the corner, investor bullishness has increased markedly since the October lows. This isn’t the first time we have discussed investor sentiment, which is often wrong at the extremes. “One of the hardest things to do is go “against” the prevailing bias regarding investing. Such is […]