Your Survival Guy's wondering about farming, city living, Trump, midterms, and Sen. Joe Manchin. Let's get into this. What we need more of from West Virginia is less Joe Manchin and more Riley Moore. State Treasurer Riley Moore is fighting ESG (See here, here, and here to get an idea about the ESG threat) with a Restricted Financial Institutions list saying, "Any institution with policies aimed at weakening our energy industries, tax base and job market has a clear conflict of interest in handling taxpayer dollars." The list so far: BlackRock, Goldman Sachs, JPMorgan, Morgan Stanley, and … [Read more...]
Archives for July 2022
SCHUMER-MANCHIN: An “Inflation” Bill that Doesn’t Fight Inflation
While millions of Americans are suffering from the effects of inflation, it's disingenuous and a bit insulting to call a run-of-the-mill tax and spending bill out of Washington, D.C. the "Inflation Reduction Act of 2022." It has almost no chance of reducing inflation and has much more potential of making it worse. But, leave it the Senate Majority Leader Chuck Schumer and Sen. Joe Manchin (D-WV) to do just that. It's the classic D.C. tactic of putting lipstick on a pig. The Wall Street Journal's editorial board writes: Talk about bad timing. As the economy slouches near recession, Majority … [Read more...]
Do Governments Cause Recessions On Purpose?
That’s a question I put to readers back in 1988, and which is now relevant to today’s economy. The Federal Reserve is rapidly raising rates, and that is good news for savers who want to invest in bonds with decent interest rates, but the implications for the greater economy are also noteworthy. Here’s what I wrote in response to that question then: Do Governments Cause Recessions On Purpose? A recession is a prospect in the second half of 1989 because smart presidents realize that it’s tough to get re-elected if the public is dealt a recession before a presidential election year. It’s wise … [Read more...]
The Bond Market Is Alive and Well
With the Fed raising rates by 0.75% yesterday, all of a sudden, the bond game is cookin’. We needed this move. And some more down the road just like it would be exactly what the doctor ordered. I’d like to see a continued pace of rate increases like this until “savers” can get some return on their money. The “risk free” rate of return has been far too low for far too long. Will the Fed have the conviction to see it through? I feel like I’m watching Lucy hold the football for Charlie Brown when I get excited about future moves. We’ll see. Stay tuned. Action Line: Until then, the bond … [Read more...]
DISLIKE: Investors Give Meta a Thumbs Down After Disastrous Report
Investors are not happy with Meta, the parent company of Facebook, Instagram, WhatsApp, and other ventures. The report showed that Meta suffered its first-ever revenue drop in a quarter during the Second Quarter of 2022. Salvador Rodriguez reports for The Wall Street Journal: Facebook parent Meta Platforms Inc. posted its first decline in revenue and issued a muted outlook on digital advertising as it contends with growing competition from rival TikTok. The company reported quarterly revenue of $28.8 billion, down almost 1% from a year earlier and slightly below the $28.9 billion Wall … [Read more...]
Is a Housing Market Crash Next?
With the Fed raising rates fast, homeowners are watching as demand for their homes begins to dry up. Pending home sales fell by 8.6% in June. That was much further than forecast, reports Aarthi Swaminathan at MarketWatch: U.S. pending-home sales fell in June by 8.6%, according to the monthly index released Wednesday by the National Association of Realtors. Analysts polled by the Wall Street Journal had forecast the pending home sales index to drop by 1%. The drop in pending home sales is the biggest since the depths of the pandemic in April and March 2020. It also follows gloomy data on … [Read more...]
YOUR RETIREMENT LIFE: Investing in the 70s, a Remembrance
Did you invest in stocks in the 70s? Do you remember the 70s? Like they say about Woodstock, if you do, “you weren’t there, man!” Look at my chart below to see why it was so forgettable. Imagine retiring in the late 60s and spending your retirement years investing in stocks. Not much fun. But, if you went into retirement with a plan, there’s a good chance you could weather the storm by owning a mix of diversified assets. When I say plan, I mean preparing before retirement with answers to questions like: How much can I “afford” to spend? What kind of yield can I get on blue-chip … [Read more...]
What’s Amazon Worth?
At the Financial Times, Robert Armstrong delves into valuing Amazon, a complex company with multiples that are still high, despite them coming down from their peaks. He writes: Amazon reports tomorrow, and some observers are a little worried that the results might disappoint. Amazon’s cloud computing business, Amazon Web Services, likely kept roaring ahead in the June quarter. But the retail operation has been reeling a bit. Now that the coronavirus pandemic-driven online shopping boom has blown over, it has been left with excess capacity, falling margins and little growth. Retail sales … [Read more...]
FERTILIZER SHORTAGE: German Manufacturer Cuts Ammonia Production
In response to reduced supplies of natural gas in Germany, chemical manufacturer BASF is reducing its production of ammonia, a fertilizer feedstock produced from natural gas. Reuters's Ludwig Burger reports: Germany's BASF (BASFn.DE), the world's largest chemical company, is cutting ammonia production further due to soaring natural gas prices, it said on Wednesday, with potential ramifications from farming to fizzy drinks. Germany's biggest ammonia maker SKW Piesteritz and number four Ineos also said they could not rule out production cuts as the country grapples with disruption to Russian … [Read more...]
“Watch This Boat off Our Stern,” My Dad Said “He’s Coming in HOT”
“Watch this boat off our stern,” my dad said. “He’s coming in hot.” “He’s throwing off a huge wake. You’ve got another one coming at us up ahead off port bow. Watch your channel markers. Keep this red to your left. Remember, we’re leaving, it’s not ‘Red Right Return.’ Pick a side up ahead. Looks like starboard passage is clear.” How to Buy a Boat: Part I Such was the reality check for our sailing trips, clearing any cobwebs from our eyes while navigating Woods Hole, a narrow channel where water funnels into Vineyard Sound from Buzzards Bay or, depending on the tide, vice versa. Just … [Read more...]
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