Most definitely a better performance this evening than was opening night. The stage was occupied by Eric and Tiffany Trump, Secretary of State, Mike Pompeo, economic advisor, Larry Kudlow, and of course several others, but the keynote speaker this evening was that of First Lady, Melania Trump. Her speech was on point, as was her delivery and message. Of course there was some irony involved, but nevertheless, it was in the right direction. The First Lady wanted to stress unity over division and wanted to highlight her tenure and travels while being in the White House. She touched upon several key issues facing the United States and countries abroad, and how her experiences as First Lady have given her a different perspective on many topics. The Kapital News believes there is a genuineness to the First Lady, especially when it comes to the importance of family and her concern and interest pertaining to children. The Trump campaign may be wise to use the First Lady’s speech as a pivot, so as to adopt a message that is centered more about unity as opposed to division and party politics. Stay diversified, stay vigilant, and stay with The Kapital News. #RNC #DNC #Politics #USA #Congress #Economy #Recession #Depression #Gold #Silver #Liberty #Revolution #BananaRepublic #EndTheFed
A brief discussion on some of this week’s events as well as some of the news from today. A general discussion of market performance, the first White House press briefing in a year, a follow up to the initial jobless claims figures, and some thoughts on global protests. Enjoy the weekend! Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Bailouts #Debt #Recession #USA #Oil #Gold #Depression #Protests
Another bumpy day for global markets and given the time of this podcast, it appears a choppy day in Asia and in the futures markets. A lot of this continued downside may be on the back of President Donald Trump’s Oval Office address this evening, where he is placing a restriction on all human travel from Europe into the US for 30 days. This will, however, exclude the UK and is limited to people and not goods. So trade between the USA and Europe will continue. The President also laid out some of his plans for attacking COVID19 as well as some measures to be taken to provide economic “stimulus.” The true stimulus is to allow markets to correct to fair value, the liquidation of malinvestments, and the subsequent restructurings that need to follow suit to occur. Will this be painful? Yes. But it is necessary and would set the path forward from a solid foundation. However, this would require great leadership, which is unfortunately, in very short supply.
On the corporate side, big names such as Boeing, Wynn Resorts, and Hilton Hotels, have all tapped out their respective credit lines. Over the past few weeks, the share prices of these companies have also taken a considerable beating. In essence, these companies are on life support. How much longer can they last? Also, how many other companies, small, mid, and large have tapped out their credit limits? With additional travel bans the world over, airlines continue to be negatively effected. With low margins and high debts loads to begin with, this places the entire industry in dire straits. Will all of these companies be able to weather the storm? Unfortunately, most likely not.
Add this to the cracks in the corporate debt markets and we’re likely to see many companies with BBB rated debt downgraded to junk. If and when this happens, we will truly begin to see what companies have foundations of concrete and those of sand. The dominoes are set, this bubble has likely been pricked, and once the air is let out, you cannot put it back in, the only question that remains is which dominoes fall first? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #COVID19 #Recession #Politics #Oil #Gold #Bonds #Silver #Debt
The Fed to the rescue! Injecting $100 Billion into the overnight markets and cutting interest rates by 50bps – an “emergency cut” – and stocks still fell nearly 3% across the board and the US 10-year note fell below 1.00% for the first time in history!
Are markets finally waking up to the fact that diminishing marginal returns have more than kicked in and monetary and fiscal stimulus is not a panacea? COVID19 is being used as the cover to justify such an emergency cut by the Fed and other central banks and despite the large sell-off today – the futures markets are expecting the Fed to cut further during their upcoming March meeting. Expectations are for another cut of at least 25bps, but some say they may even take the Fed Funds Rate all the way down to zero! And don’t forget folks, this is the greatest economy of all-time and COVID19 is completely under control here in the USA and there’s nothing to see. Huge eyeroll!
There is no leadership. There is no accountability. There is no credibility. And the hits just keep on coming. Monetary policy cannot remedy the kind of supply and demand shock(s) we are witnessing. Nor can such policies always pack the same punch that markets have grown accustomed to over the last decade. Add to all of this the structural issues that plague country after country and you have yourself a nice recipe for disaster. Disaster on multiple fronts – political, societal, economic, financial, and even public health. A little leadership and truth telling would go a long way, but don’t hold your breath. No one knows the future, but the stage is set for some very rough waters ahead. Are your ready? Stay diversified, stay vigilant, and stay with The Kapital News. #Economy #Recession #COVID19 #Coronavirus #Gold #Silver #Bonds #Oil #Politics #Truth #EndTheFed
