Only in this Fed-driven Bizarro World equity market would a company (Robinhood, ticker: HOOD), that generates revenue by selling customer order flow be rewarded by many of those customers in the form of a 50% stock pop in one day and a 100% stock price gain in one week. The irony is thick. HOOD's nosebleed … Continue reading Robinhood – Thank You May I Have Another?
Tag: monetary policy
TEK2day Spotlights are sponsored reports that focus on a particular industry and/or technologies. M&A Activity & Low Interest Rates, Product & Process Innovation and Digital Transformation & Advanced Automation are some of the catalysts driving change within the global insurance industry. Click HERE to access the full report. Reach us at email@example.com with any questions.
Federal Reserve Chairman Jerome Powell has spearheaded the most radical monetary policy in American history. From zero percent interest rates to Quantitative Easing to Corporate Security Asset Purchases to various lending facilities, to subsidizing fiscal spending programs and deficits - The Fed's resume is not one to be proud of. Under Powell the Fed has … Continue reading The Most Radical, Irresponsible Monetary Policy In U.S. History
Amidst the talk of the Fed potentially tightening monetary policy in 2023 or even next year, the Fed expanded its Balance Sheet at its fastest pace since March 17th of this year, growing assets 1.4% from the week prior. This narrative of the Fed potentially becoming more hawkish needs to be put into perspective. With … Continue reading The Fed Expanded Its Balance Sheet Amidst Tightening Chatter
A byproduct of the Pandemic Emergency Unemployment Compensation (“PEUC”) program is the job interview "no show", which has become all too common across the Retail sector. The "no show" is where a job candidate skips the job interview because the candidate never intended to obtain a job. Rather, the candidate simply needed to show proof … Continue reading The Job Interview “No Show”
One of the great distortions caused by the joint fiscal and monetary policy of 2020 and 2021 is that equities and the lowest-rated non-investment grade credits are two of the all too rare places where investors may earn a return. Savers and Fixed Income investors be damned. Many companies are enjoying their stocks trading at … Continue reading Investors Should Ask More of Their Management Teams
Powell's Fed will continue to run its ultra-loose monetary policy for as long as possible in an effort to inflate the debt away. On Wednesday Powell will say more time is needed for the economy to recover before the Fed considers tightening interest rates. Powell will talk of transitory inflation. Powell will quote May's poor … Continue reading The Fed Won’t Change Its Position On Wednesday
More bogus CPI numbers reported yesterday (HERE). The CPI itself is a poor price inflation measure given it excludes so many asset classes such as equities, art and crypto. Let's focus on one CPI line item - "food at home" which was up 0.7% over the past 12 months ended May. Sorry, that's a bogus … Continue reading Inflating The Debt Away. Higher Prices Are Here To Stay.
The best management teams know to plan for the worst and hope for the best. COVID was a reminder to many business leaders that anything can come out of left field and blind side a business. Despite the COVID lesson we believe that many CEOs and CFOs take certain financial conditions for granted as if … Continue reading Plan for the Worst. Hope for the Best.
Make no mistake, Biden's $2.3 Trillion "infrastructure" spending program and $1.8 Trillion "American Families" spending program will pass Congress. That's bad news for Americans and small business and good news for Amazon (AMZN) and Walmart (WMT). **Purchase our Amazon Kindle book "Stagflation Is Imminent": HERE First: we would not be having this conversation if the Federal … Continue reading A Tale of Two Cities