Record Level Euphoria Always Ends Very Badly! Fed to the Rescue? Watch Out!
As interest rates have moved lower and lower throughout the last few decades, the firepower of the central banks, particularly the Fed has diminished. We are in a time in which the printing presses are running at full blast, globally all central banks are pumping in fiat garbage, and still the economy is horribly weak. Of course, this was already a problem in 2019 and into 2020, it was accelerated rapidly. But the question is, if they’re already maxing out, what level will they go to next time around?
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Zero-fee trading helps Citadel Securities cash in on retail boom | Financial Times
Citadel Securities and its majority owner Ken Griffin are among the big winners from a boom in retail investing, cashing in on the zero-fee trading that has lured huge numbers of first-time investors to the US stock market.
Long-term unemployment is rising toward a Great Recession record
Long-term unemployment is edging toward a historical peak, almost a year into the pandemic-fueled downturn. Workers are deemed to be “long-term unemployed” when their jobless spell is longer than six months. It’s an especially dangerous period of unemployment, according to labor economists. For one, household income may drop significantly.
FOREIGN-BASED BOND CALLS GO OUT TO U.S. – Chicago Tribune
With the dollar in decline, a scenario that could weaken foreign investor confidence, calls are being made for the U.S. government to issue Treasury securities denominated in foreign currencies. Such a move has been made only twice in recent U.S.
Bespoke Capital Acquisition Corp. – Vintage Wine Estates, One of the Fastest Growing U.S. Wine Producers, to Become a Public Company
Bespoke Capital Acquisition Corp. (TSX: BC.U) and Vintage Wine Estates enter into a merger agreement Vintage Wine Estates has a revenue and EBITDA CAGR of over 20% since 2010 Paul Walsh, Executive Chairman of BCAC and former Diageo CEO, to become non-executive Chairman of the combined company.
The financial system is seeing a massive uptick, massive flows of money, cash, debt into equities. More stimulus is on the way. This is in every form. Money printing from the central banks but also stimulus packages from the government itself. The expectation is that this will reflate the economy, pushing more money into stocks for those who have the disposable income.
— APPENDICES —
— The Money GPS: GME and AMC attracted many buyers. Illiquid stocks/micro cap stocks are now trendy. Be careful. (Instagram Feb 4, 2021)
— The Money GPS: Wall Street Bets on Reddit is adding millions of people. Retail traders needed to keep the prices going higher. (Instagram Jan 30, 2021)
— The Money GPS: Jim Cramer says don’t go for grand slam. What do you think? (Instagram Jan 29, 2021)
— The Money GPS: Find a company you thought was no longer in business, buy some shares, get rich quick. Is that what’s seriously happening right now?! (Instagram Jan 29, 2021)
— The Money GPS: Investing legend says bad things are coming because paper printing does not create an economy. (Instagram Jan 22, 2021)
— The Money GPS: The purpose of big tech is to absorb your data. Not to provide a service and later take advantage of you. Look up In Q Tel. (Instagram Jan 21, 2021)
— The Money GPS: To get where you want to be, you have to know where you are now. (Instagram Jan 4, 2021)
— The Money GPS: Master one thing before moving on. Know where you are in the cycle. (Instagram Dec 15, 2020)
— The Money GPS: Be a better investor | How to be a better investor. Window shop! (Instagram Dec 12, 2020)
— FOOTNOTES —
Wake up to the suits and ties. They’re all lying to you. None are your friends. None wish to help you. Wolves in sheep clothing. More distractions than ever before. The magician always makes a spectacle to hide the trick.
UNEMPLOYMENT RATE DROPS TO 6.3%. Of course that’s the seasonally adjusted number they like to show. Of course that doesn’t include all of the people who have left the workforce, the underemployed, the people who have fallen off the statistic. But who cares, right? #unemployed
We live in a fantasy land. More money flowing in than ever before, IPO frenzy, housing skyrocketing. Euphoria never end well. The higher it goes the worse it will be. Slow and steady growth is much safer. #money #investments #debt
IF THEY WILL FIGHT OVER PLAYSTATION…What would they do for food? #ps5 #PlayStation5 #playstation #ps5fight #walmart pic.twitter.com/hbimVKzeta
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The Money GPS is the most active, most informative channel in the financial world. Day after day, breaking down the data and making it easy to understand. This channel is not here to help build a portfolio, give stock picks, or financial advice. It’s simply data that is generally not found through conventional means.
The statements, views and opinions expressed in this column are solely those of the author and do not necessarily represent those of The Duran.