How did you feel about your investments while talkin’ turkey this Thanksgiving? Did the story about the cryptocurrency millionaires get under your skin? Did the 900-point drop in the Dow on Black Friday cause indigestion? Because these are the times to understand why you’re reacting the way you are to the events of the day. In a time when people discuss their money with the same breeziness they do the weather, it’s important to remember just how much is at stake. Don’t forget how brutal markets can be, even for investors who are “in the know.” Action Line: A trusted advisor will help … [Read more...]
Archives for November 2021
FOOL ME ONCE: Nissan Wary of EV Projections
In 2010, Nissan took a big leap of faith into the electric vehicle market, spending billions on designing and building battery-powered cars. It didn't turn out as planned, and now the company is wary of projections of growth for the electric vehicle market. Sean McLain reports in The Wall Street Journal: TOKYO— Nissan Motor Co. was once the world’s loudest proponent of electric cars, but these days it is one of the more sober voices. On Monday, the Japanese car maker said it would spend about $17.5 billion on 20 new battery-powered models, aiming to have half its sales come from electric … [Read more...]
Did You Miss the Biggest Market Rally in over Eight Decades?
UPDATE November 30, 2021: Since we first posted this in March, stocks have continued their upward climb rising another 18%. Investors who bailed out at the March 2020 bottom and still haven’t gotten the courage to invest back in the market have forgone a 113% return. Ouch! And that doesn’t even count the capital gains taxes that were likely due when long-held positions were sold. Trying to rush for the exits when everyone else in the building is doing the same and then piling back in when the all-clear signal is given is a good way to get banged up. A long-term balanced approach that properly … [Read more...]
CALLED OUT: Omicron Variant Panic Puts Investors in a Corner
For those of you still working off Thanksgiving dinner, you may have missed the 900-plus-point drop in the Dow Jones Industrial Average. Unfortunately, for some, the decline forced investors to sell their own shares because of margin calls. As the WSJ reports: Markets sold off worldwide on Friday after South Africa raised alarm about the new “variant of concern” that the World Health Organization named Omicron. The panic may be driven more by the fear of new government lockdowns and social distancing than by the variant itself. The Dow fell 2.5% while U.S. crude prices tumbled 13% as the … [Read more...]
Was Friday’s Selloff a Warning of Market Fragility?
Just how fragile are markets? Wellington has done a report, and the results aren't promising. The supply and demand of liquidity are mismatched, and chaos could be right around the corner. Robin Wigglesworth explores the market's fragility in the Financial Times, writing: Investors have been blithely skating into the Christmas period, basking in another remarkable rally across financial markets. But the ice underneath may be thinner and brittler than many realise, as Friday’s violent sell-off showed. The past decade has been characterised by unusually calm, strong and long stock market … [Read more...]
Happy Thanksgiving from Young Research!
GET PAID: How To Invest in Biden’s Inflationary Market
There’re few guarantees in life, but one of them is the destruction of your dollars now that Fed Chairman Powell’s been nominated for a second term. Does this mean gold’s going through the roof? We’ll see. I don’t speculate on gold, especially when there’s a liar standing over every mine telling his story. What I do like is for you to think about gold as an insurance policy where you hope you never need to use it. When gold is surging, times aren’t always great, and vice versa. Stick with me. Make sure you’re being paid to invest in this market much like you are when you own a business. … [Read more...]
Inflation Pricing Driving Higher Sales at Smuckers
The power of strong branding proved itself once again in the last quarter as J.M. Smucker Co. was able to set higher prices for its products and increase sales in this time of inflation. Adriano Marchese reports for The Wall Street Journal: Food manufacturer J.M. Smucker Co. SJM -1.34% said sales in the second quarter rose, as higher prices and demand helped it navigate higher costs and supply chain challenges. On Tuesday, the company behind Jif peanut butter, its namesake jellies and Folgers coffee said net sales were $2.05 billion in its fiscal second quarter, up from $2.03 billion a … [Read more...]
Local and National News Reports: Gas Prices Are Up
Your Survival Guy received an email yesterday from National Grid, my natural gas and electricity provider. The email explained that “you may have heard on local and national news reports, natural gas prices have risen worldwide in recent months due to increased global demand and lagging natural gas production.” Really? And to boot, “Since natural gas plays a major role in generating electricity, there will also be an impact on your electric bill.” Shocker. “While National Grid can’t control this global rise in natural gas prices, we are committed to helping you manage higher energy bills.” … [Read more...]
ELECTRIC VEHICLE EUPHORIA: “Flow, Momentum, Memes and Appetites”
In an interview with The Financial Times, Drew Dickson, chief investment officer at Albert Bridge Capital, explains that in the short and intermediate term, electric vehicle stocks have been dominated not by fundamentals, but by "flow, momentum, memes, and appetites." Robin Wigglesworth reports on the increasing power of electric vehicle makers' over financial markets, writing: An index of EV and electric battery companies compiled by the FT has a combined market capitalisation of almost $1.8tn. In contrast, automotive giants Toyota, Volkswagen and Hyundai, the biggest car manufacturers in … [Read more...]
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