You don’t need to save the world in a day to reap the windfall of compounding money. You can read about Your Survival Guy’s 4 Ways to Your Wealth and teach someone you know about becoming a compounding machine. Saving money on a regular basis is a linear event. Mix in time and interest on interest and you quickly see the miracle of geometric growth. Action Line: If you want to talk about how you can put compound interest to work for you, get in touch with me here. Originally posted on Your Survival Guy. Your Survival Guy’s 4 Ways to YOUR Wealth Your Survival Guy’s four ways … [Read more...]
Archives for September 2022
The Fed Should Avoid Volcker’s Credibility Killing Mistake
Though he is well known as an inflation fighter, Paul Volcker made mistakes, suggests Alfred Lerner, a former Federal Reserve Board Governor and a professor at Columbia Business School. Lerner points to Volcker's caving to pressure to lower interest rates before inflation was actually beaten as proof. He writes in the Financial Times: Paul Volcker is considered to be a GOAT (greatest of all time) central banker because he and the US Federal Reserve broke the back of inflation in the early 1980s. However, less talked about is the serious policy mistake that the Volcker Fed made in 1980. The … [Read more...]
American Shale Can’t Save Europe from Winter
European gas customers are facing a winter of uncertainty with the war between Ukraine and Russia putting supplies of natural gas in doubt. Joe Biden has promised America will help supply Europe with gas, but American shale drillers are signaling that they can't ramp up production in time to have a meaningful effect on the gas market. Justin Jacobs, Derek Brower, and Myles McCormick report for the Financial Times, writing: The US shale industry has warned it cannot rescue Europe with increased oil and gas supplies this winter amid fears that a plunge in Russian exports will send crude prices … [Read more...]
Your Survival Guy’s Got Quarters in His Loafers Tryin’ to Fight Inflation
Are we having fun yet? If you’re with me, and I hope you are, I know you don’t love big swings in the stock market. But, at the end of the day, prices are opinions, and based on the state of the world, opinions are in no shortage in the supply chain. Could Railroad Strikes Cripple the Already Suffering Supply Chain? Your Survival Guy’s got quarters in his loafers tryin’ to fight inflation. Inflation at 8.3%? You and I know it’s much higher in many areas of our life. You know that no matter who wins in November, spending in Washington is not going to stop. The executive branch is … [Read more...]
Are You Getting One of These Surprise Inflation Tax Cuts?
Inflation has devastated many Americans' buying power, forcing them to make choices between necessities like food and gasoline. Some Americans though will receive a tax cut thanks to the high levels of inflation. It's counterintuitive, but it may happen to you. Ashlea Ebeling reports on who will be getting a tax cut next year and why in The Wall Street Journal, writing: One ripple effect of the high inflation eating into Americans’ spending power may be lower tax bills. Many workers will get bigger paychecks in January and be able to stash more money in their retirement accounts when the … [Read more...]
Do you remember the 70s? “Like it was Yesterday,” You Tell Me
“Like it was yesterday,” you said in my conversation with you. We were talking about your portfolio and markets and transitioned to Roxbury, Massachusetts of all places, and the Mission Hill neighborhood. I was explaining how, on Tuesday following Labor Day Weekend, Becky and I helped our daughter move to her new apartment where it seems everyone at Northeastern University lives. I said it’s outrageous what they’re getting for rent in these triple-deckers. “Funny, you should mention that,” you said. “I lived around the corner when I was at Northeastern a long time ago,” you … [Read more...]
Instagram Can’t Tik Tok, and It Shows
No matter how hard thy try, the people running Meta just can't seem to clone Tik Tok with their Instagram Reels offering. The problem, according to an internal Meta document reviewed by The Wall Street Journal, is that creators on Reels just aren't making enough content. Salvador Rodriguez, Meghan Bobrowsky and Jeff Horwitz report for the WSJ: Meta Platforms Inc. META -7.66%▼ Chief Executive Mark Zuckerberg is betting the social-media giant’s near-term future on Instagram Reels, the short-video feature he is touting as the company’s answer to TikTok. The company’s internal research shows … [Read more...]
Could Railroad Strikes Cripple the Already Suffering Supply Chain?
Since the outbreak of the Covid-19 pandemic, Americans have been inundated with stories about the country's broken supply chain. Shortages and rising costs for shipping have been an everyday problem for business owners and their customers. Now, railroad employees are preparing to strike for higher wages, and if railroads and their unions can't come to an agreement, the entire supply chain could be upended once again. Freight railroads said they are planning to halt the transport of hazardous materials and sensitive cargoes, such as chemicals used in fertilizer and chlorine for water … [Read more...]
You’re a Compounding Machine: Shop Stocks Like You’re at Walmart
Are you investing like you’re shopping at Walmart? Everyone loves a sale, right? But when it comes to stocks, what’s never surprising to me is how investors run for the hills when prices fall. A few months ago they may have been snapping up shares at full price, but as soon as the rollbacks come, they’re scared to buy even good companies. My hope for you, my valued reader, is to not focus on prices but to focus on income. Prices come and go. Income is forever. I want you to be a compounding machine. REJECT FEAR: You Can Become a Compounding Machine Look at the technology sector. Nasdaq … [Read more...]
Investors Must Survive Volatile New Geopolitical Economic Landscape
Investors are facing many reversals of trends that have been prevalent in markets for decades. Globalization that had a calming effect on markets is turning into reshoring and nearshoring. Fiscal policies that are supposed to suppress inflation are probably going to encourage more of it. Stephen Miran writes at Barron's: Despite the market fireworks, the most important speech at last month’s Jackson Hole conference wasn’t given by Federal Reserve Chairman Jerome Powell. It was delivered by Agustin Carstens, head of the Bank for International Settlements and former governor of the Bank of … [Read more...]