You may think that a rural farm community would jump at the chance to have a major new customer locate a processing facility right in their backyard. Throughout the farm belt though, farmers are fighting back against having meat processing facilities located in their towns. Some communities just don't want to live near the plants that promise noxious odors, immigrant labor forces, and the increased use of infrastructure. Jacob Bunge reports at The Wall Street Journal about Tonganoxie, a small Kansas town currently fighting against the location of a new Tyson plant there. He writes: Residents … [Read more...]
Archives for December 2017
Is the Fed the Biggest Risk to the Economy?
Phil Gramm and Thomas Saving write in the Wall Street Journal on the challenges the Fed will be faced with as economic growth returns to normal. To compensate for stifling regulation and misguided economic policies that held back growth during the Obama years, the Fed went full-bore on monetary stimulus. And it didn’t just stimulate during the depths of the last recession. Short-term rates were effectively held at zero until 2016, there were three quantitative easing programs, a twist program to force down long-term rates, and regular jawboning. What does the Fed have to show for its … [Read more...]
You’ve Read the Last Issue of Intelligence Report: MTI and RAGE Gauge
In case you missed it, here’s what Dick Young wrote in his December 2016 issue of Intelligence Report: My Revitalized Market Tension Index (MTI) When will we know that the economy has entered recession? This month, I am reintroducing my Market Tension Index (MTI) to help you and I determine whether the economy is in recession. This will be the first of what are likely to be many more proprietary indicators and tools I plan to roll out to help you become a more comfortable, confident, informed investor. My revitalized MTI is a composite index of indicators that have historically peaked … [Read more...]
Ranching in Wyoming, Slow Money, and Finding the Key to Your Success
You know, there’s nothing wrong with making money slowly. With all the hype surrounding bitcoin and making money fast, there’s virtue in making it over time—you appreciate what you have when you finally get it. Respect for money was an important lesson I learned, of all places, as an intern at a start-up company while at Babson College. One morning in the conference room the founder told me, “Always remember, most investors don’t respect money. They don’t appreciate the hard-work it takes to earn it. They’re looking for a quick buck. We’re trying to create something. We’re builders. We … [Read more...]
Household Net Worth Hits a Record High: Is that a Good Thing?
We have run this chart before, but a recent update from the Federal Reserve shows that the ratio of household net worth to income is now at a record high. On the surface, higher net worth would seem to be a plus for the economy. Consumers don’t have to save as much which should boost growth and there is an equity cushion to soften the blow of a recession. But increasing net worth is only a positive when it is supported by greater underlying cash flows. The record high in the ratio of net worth to income is an indication that the underlying cash flows of financial assets aren’t keeping pace … [Read more...]
Could a Startup Beat Tesla to the Semi Market?
Crash!
I have been investing since the spring of 1964, and I do not remember being as uncomfortable with the health of the financial markets as I am today. Given that unpleasant prelude, I also want to advise all investors that my own investing position has not changed since I began investing 53 years ago. I do not market time, i.g., moving in and out of the markets. I pay zero attention to daily, weekly or monthly price movements and have never made an earnings projection in my life. I do not keep tabs on the exact value of my own account. My assets are spread around with custodial friends … [Read more...]
Can Apple Ever Catch Up in Streaming Music?
Spinning Christmas tunes last night through our Sonos made me wonder how Apple missed this huge opportunity. Looks like they’re trying to pick up their game with the acquisition of Shazam. Too little too late? Spotify, a small company that seemingly came out of nowhere has been able to amass 60 million streaming subscribers. Meanwhile, Apple, creator of the iPod and the unrivaled master of MP3s sat on its hands while streaming music proliferated. Now it's playing catch up, with 30 million subscribers, Apple is well behind. Tripp Mickle writes that Apple may be able to use Shazam to close the … [Read more...]
Is the GOP Tax Plan as bad as You’ve Heard?
If you listen to the mainstream media, you might get the impression that the GOP tax plan is a disaster. Yes, there are some problems with the bill, but none outweigh the awesome benefit of slashing the corporate tax rate to 20% and lowering the rate on pass-through businesses. Small businesses seem to be ecstatic about the GOP tax plan. The NFIB Small-Business Optimism Survey just hit its highest level in over three decades, and only once in the survey’s 44-year history has it been this high. The hiring plans sub-component of the survey also hit a record high. A net 24% of small … [Read more...]
Are Futures a Good or Bad Evolution for Bitcoin?
Bitcoin futures began trading on Sunday. In a maniacal market like the one for bitcoin has become, no one is sure what to expect. On the first day, the contract's trading became so volatile that its trading was halted twice. Web traffic was so heavy that the CBOE website was slow or unavailable at times. While many are cheering the potential of these futures contracts, others are worried about threats to bitcoin and the cryptocurrency's market stability. Alexander Osipovich and Gabriel T. Rubin report: The launch of the bitcoin futures represents a milestone for the digital currency. But the … [Read more...]