Do you know how to structure your bond portfolio? When companies issue debt, for example, they put out a spread of maturities and coupons. It reminds me of setting out the spread when sportfishing for sailfish. You have your three lines through the outriggers, for example, on port and starboard with kites keeping them on the surface. You have a couple lines off the stern at high and low depths trying to work the water column. You spread out your options. When it comes to your bond ladder, you want to put a portfolio together that provides income while controlling the two main risks, credit … [Read more...]
Archives for June 2022
DISRUPT TRUCKING? Autonomous Vehicle Pioneer Wants to Change Trucking Forever
With the nation facing a shortage of truckers, solutions to supply chain problems are coming in unfamiliar ways. One answer to the problem is an increase in autonomous trucking, and Gatik, a "pioneer of driverless technology," is working to make that happen. Bloomberg's Brendan Case reports: Self-driving trucks will soon make deliveries to Walmart Inc.’s Sam’s Club stores in the Dallas-Fort Worth area, marking a significant expansion of autonomous vehicles operating in live traffic. Gatik, a pioneer of driverless technology, will partner with Georgia-Pacific to drop off goods such as … [Read more...]
Your Survival Guy’s Champagne Taste on a Beer Budget
What’s Your Survival Guy’s solution to satisfy my Champagne taste on a beer budget? One word: Prosecco. Go for the orange labeled Mionetto for $13.99 or any other comparable bottle. Prosecco costs a fraction of what you’ll pay for some Dom—about the same as a twelve-pack of Bud Light bottles. But you’ll look and feel like a high roller popping this Italian bubbly for friends and family. Cheers! Action Line: Keep some in the fridge to make an ordinary night extraordinary. Click here to subscribe to my free monthly Survive & Thrive letter. Originally posted on Your Survival Guy. … [Read more...]
Guests SHOCKED by Restaurant Surcharge Inflation
If you eat out at restaurants, you have certainly noticed that prices are going up. If you've scanned the receipt at the end of the meal wondering why it exceeds the sum of the menu items you ordered, you may have seen fees and surcharges at the bottom of the bill in varying amounts. The rapid increase in charges is a shock to some diners who did not expect to pay as much as they have. J.J. McCorvey reports: Notice something extra on your restaurant tab? Rather than raise menu prices, restaurants are using new fees and surcharges to stick inflation into the fine print. Fees for a … [Read more...]
WARNING: Private Equity Investing Coming to a Retailer Near You
Don’t look now, but private equity is looking to tap into the retail investor market. Looks like they ran out of money on the institutional side—you know, the pensions for firemen, teachers, and police officers. This is all about the sales pitch. But where do you think they’re investing this “alternative” money? What’s clear as day is the lack of transparency. They lock up your money so you can’t get it, and you basically pay them to make sure you’re a long-term investor. I don’t like it. The best things in life are free. Your Survival Guy is here for you. Stick with me. The WSJ PRO’s Chris … [Read more...]
RAPID REVERSAL: Passive Funds Own More of Market than Active Funds
For the first time ever, passive index funds own more of the U.S. stock market (16%) than actively managed funds (14%). The change represents a rapid reversal from only ten years ago when actively managed funds owned 20% of the market, and passively managed funds owned a mere 8%. Steve Johnson reports for the Financial Times: Passively managed index funds have overtaken actively managed funds’ ownership of the US stock market for the first time, data show. Passive funds accounted for 16 per cent of US stock market capitalisation at the end of 2021, surpassing the 14 per cent held by active … [Read more...]
Your Survival Guy’s Boat Struck by Lighting, Plan B
OK, you read here that Your Survival Guy’s boat got struck by lightning. In my conversations with you, you’re asking if it’s fixed and back in the water. Well, here’s the deal. To make a long story short, I sold the boat as is and ordered the same one from Grady White, a Canyon 306. MAYDAY: Black Smoke Rising from Your Survival Guy’s Boat I’m waiting for delivery, chomping at the bit to get back out on the water. I’ve been told I should be good to go for July 4th, assuming the engines aren’t delayed. You and I know what happens with assumptions. I’ll keep you posted. Your Survival Guy: … [Read more...]
Japan Restricts Who Can Issue Stablecoins
In a long-prepared set of new regulations, Japan has set stricter rules on stablecoins and their issuance in order to protect consumers and the Japanese economy from potential volatility. Leo Lewis and Kana Inagaki report for the Financial Times: Japan has passed a landmark law clarifying the legal status of stablecoins, surging ahead in an international race to construct safety nets around the tokens whose peg to mainstream currencies underpins the broader cryptocurrency market. The move by Japan, part of a five-year effort to protect consumers investing in cryptocurrencies, followed last … [Read more...]
Will the Fed Tighten at Its Next Meeting?
Will the Fed tighten at its next meeting? Listen, I’m Your Survival Guy, not some gambling website. We’ll see what happens, but I’m not betting the ranch on Charlie Brown threading the needle and kicking the field goal. What I do know is the Fed’s talking its book, and the market bid rates higher. What could possibly go wrong? READ: The Dangers of a Federal Reserve Digital Currency When there’s chaos in the markets, you need to be ready to strike as opportunities present themselves to you. When stocks and bonds were tumbling, bond yields all of a sudden looked more attractive. And that’s why … [Read more...]
Sheryl Sandberg Leaves Facebook in Mark Zuckerberg’s Hands
After fourteen years of copiloting the world's largest social media company, Sheryl Sandberg has resigned from Facebook. Hannah Murphy reports for the Financial Times: Sheryl Sandberg is stepping down as the chief operating officer of Facebook’s parent company Meta after 14 years, a major shake-up in which chief executive Mark Zuckerberg will lose one of his closest lieutenants. Sandberg, one of the company’s most high-profile executives, will leave the business “in the fall” after a transition period, while remaining on Meta’s board, she said. In a post on her Facebook page on … [Read more...]