The Federal Reserve soap opera began over a century ago. The never-ending melodrama is fraught with twists and turns, good times and heartbreak and most of all – lies! One constant character, the Fed Chair, plays the role of a carnival barker, hawking the illusion of diligently guiding our country’s banking system through turbulent times – while deceiving the country about their real mission.TalkMarkets Contributor, Bill Bonner, explains Another Bamboozle:“The big bankers wanted to be able to make big bets, but without the risk of going broke. They solved that problem by creating the Fed in 1913. Now, when business is good, they ke...
Image Source: ESG Today The U.S. Securities and Exchange Commission (SEC) announced that it has charged Keurig Dr Pepper Inc. (KDP) over claims by the company that its coffee pods could be recycled, despite not being accepted by major U.S. recycling companies.Alongside the announcement, the SEC said that Keurig has agreed to pay a civil penalty of $1.5 million to settle the charges, without admitting or denying the Commission’s findings. According to the SEC, Keurig had stated in its fiscal year 2019 and 2020 annual reports that testing with recycling facilities indicated that its K-Cup coffee pods “can be effectively recycled,” alth...
Image Source: DepositPhotos Gold prices hit a new all-time high and silver is finally starting to catch up. Platinum and Palladium are also on fire as the backdrop for metals continues to get stronger. A record-breaking trade deficit deflation fears and China as well as increasing odds that the Fed is going to embark on a rate cutting cycle is causing one of the biggest potential moves in precious and industrial metals in decades. The rush to the gold market is happening because people are concerned that the economy is slowing, and consumers are out of money. The U.S. budget deficit reached $1.897 trillion for the first 11 months of the 202...
Factor investing has been in vogue because of institutional and retail investor preferences for smart beta investing strategies. The approach selects stocks for investment based on factors or attributes correlated with higher returns. There are two main types of factors: macroeconomic and style factors. In reality, most investors have been practicing factor investing in some form or another for many years. For instance, ask yourself if you prefer value stocks over momentum stocks or vice-versa. Some people like value, and others prefer momentum stocks. However, both are style factors. You are picking one to enhance your returns and minimiz...
Argentina’s Minister of Economy, Luis Caputo, announced that starting September 2nd, Argentina will reduce the Federal Currency Tax (PAIS tax) on products imported using the official exchange rate from 17.5% to 7.5%. This policy adjustment will directly affect the import costs of automobiles and their components, not only helping to reduce costs within Argentina’s domestic auto industry but also providing new opportunities for Chinese enterprises aiming to enter the Argentine market. More By This Author:The Battle In Thailand: Chinese EVs Break Through In Southeast AsiaChina’s Exports Becoming An Integral Part Of Global Supp...
Image Source: UnsplashLiquidity in the stock market has vanished over the last few days.Video Length: 00:16:06More By This Author:A Steeper Curve May Cause The Technology Sector To Sink Further Stocks Rally Back In A Roller Coaster Session Markets Scream Of Risk-Off Ahead Of August CPI Report...
Photo by Mohamed Nohassi on Unsplash It is fair to assume that any data, from visual to textual, has been used to train AI models since the dawn of the Internet. It is now incumbent on AI companies to clean and fine-tune those datasets to reduce noise and deliver useful products.In the worst-case scenario, even if current AI models don’t budge from their performance ceiling, they would still be massively useful for automating tasks. As of March 2024, AI reporter Maxim Lott rated Claude-3 as the best performing model, achieving an IQ score of 101, with ChatGPT-4 falling behind at an IQ of 85.On September 24th, OpenAI is scheduled to r...
Oh what a tangled web we weave… When first we practice to deceive —Sir Walter Scott Last week brought news that the stock market had gone up… a little. A photo showed a happy face on Wall Street, and a smile on the face of the newscaster. Rising stock prices are always accompanied by smiles. The back of our envelope tells us that investors are about $250 billion richer today than they were yesterday morning. But if they got richer, who got poorer? Where are the un-smiling faces? The winners are almost all in the upper 10% of the population. Now they have, on paper, a quarter of a trillion dollars more. But w...
Image Source: DepositPhotos Up 10.0%, down 12.2%, down 1.3%, up 1.1%, up 9.8%, up 2.2%, down 9.7%, down 3.1% and down 8.8%. The past nine weeks of SOX performance. Nvidia: Up 15.8%, down 13.9%, down 7.7%, up 3.8%, up 19.8%, down 2.3%, down 5.1%, down 4.1%, and down 8.8%. Nasdaq100: Up 5.9%, down 5.9%, down 0.7%, up 1.1%, up 5.4%, up 0.4%, down 3.1%, down 2.6%, and down 4.0%. Small Cap Russell 2000: Up 4.4%, down 5.7%, unchanged, up 3.6%, up 2.9%, down 1.3%, down 6.7%, up 3.5%, and up 1.7%. Benchmark MBS yields are down 38 bps so far in September (9 sessions) – and 120 bps since July 1st (to a 19-month low). Two-year Treasury yields have d...
Image Source: PexelsFord’s (F) CEO, Jim Farley, is very scared of Chinese automakers. He should be. The US trails badly.An ‘Existential Threat’?!Jim Farley labels China’s electric carmakers ‘existential threat’.That’s a term we hear about climate change and nuclear war. But cars?The Wall Street Journal reports What Scared Ford’s CEO in China Jim Farley had just returned from China. What the Ford Motor chief executive found during the May visit made him anxious: The local automakers were pulling away in the electric-vehicle race. In an early-morning call with fellow board member John Thornton, an exasperated Farley unloaded. ...