Jobs are getting scarcer, and bad public policies are making matters worse. The Labor Department reported the economy added 287,000 in June, but that was a bounce from only 11,000 the prior month. Over the last three months, new jobs have averaged only 147,000—about two-thirds the pace from 2013 to 2015. Unemployment increased to 4.9 percent from 4.7 percent in May, and wages were up only 2 cents per hour or less than one-tenth of a percent. The U.S. economy is growing again—about 2.5 percent annually in the second quarter and going forward—but good jobs remain scarce and wage gains lackluster. New technologies are reducing the dema...
The red-hot gold miners’ stocks have continued blasting higher this summer on heavy ETF buying by professional money managers. Funds’ ongoing big capital inflows into this market-leading sector have overcome its usual summer seasonal weakness. While gold stocks’ odds-defying record early-summer surge certainly ramps short-term downside risk, this year’s dazzling new gold-stock bull still remains young. Managing other people’s money is a hard and challenging job. Investors naturally expect and demand healthy returns after entrusting their hard-earned wealth to financial professionals. And if these fund managers fail to deliver, inves...
Interest rates around the world have continued to decline this year. But perhaps a silver-lining for many U.S. homeowners, we’ve seen a wave of mortgage refinancing since the U.K. Brexit vote as interest rates have fallen further. According to the Wall Street Journal, the average 30-year mortgage rate fell to 3.34% on July 6th, down from over 4% at the start of the year, and in line with record lows. And an index put out by the Mortgage Bankers Association shows refinancing activity rose 21% in the week ended July 1st, to its highest level in 18 months. On the other hand, lower mortgage rates are not good news for banks holding a lot of mor...
“The truth is incontrovertible. Malice may attack it, ignorance may deride it, but in the end, there it is.” – Winston Churchill Whether the majority realize it or not now, the crowd will soon enough. We are nearing the end of one of the most incredible intermarket disconnects in modern times as the relationship of bonds to stocks nears a breaking point. I don’t care what you hear in the media. We should all want to see rising rates. Rising rates means growth and inflation expectations are rising in a fiat economy. It signals a healthy demand for money. It signals an environment of expanding profits. Markets rallied strongly last week...
Risky assets including stocks are suffering from a serious case of “Brexit Blues,” which forced investors to park their money in safe-havens such as bonds. Fed Chair Janet Yellen had said that U.K’s decision to leave the EU would “usher in a period of uncertainty” and fuel volatility in world markets. As demand for bonds climbs, yields decline and term premiums are pushed lower. In this scenario, income seeking investors are lured toward funds having exposure to dividend paying stocks. On top of it, diminishing chances of a rate hike have made these bonds more attractive. Low Bond Yields Britain’s vote to leave the EU caught marke...
Initial Reaction Today’s employment report shows an amazing increase of 287,000 jobs. The BLS revised last month from 38,000 down to 11,000. The household survey shows June employment rose by 67,000. In May, employment rose by a mere 26,000 and in April, employment declined by a whopping 316,000. The unemployment rate rose 0.2 percentage points to 4.9% because the labor force rose by 414,000. We have seen divergences between the household survey and the establishment survey before, but not three consecutive months, recently. Let’s dive into the details in the BLS Employment Situation Summary, unofficially called the Jobs Report. BLS Jobs...
According to a report by Global Industry Analysts, the global market for Virtual Reality (VR) in Healthcare is estimated to be worth $3.8 billion by 2020. The United States is expected to be the largest market globally driven by increasing spend on R&D and investments in VR technology by government and private companies. Meanwhile, Asia-Pacific is projected to be the fastest growing market with a growth rate of 23.2% annually. Billion Dollar Unicorn club member MindMaze is a leading player in this market. MindMaze’s Offerings Ecublens, Switzerland-based MindMaze was founded by neuroscientist Tej Tadi. Prior to founding MindMaze, Tej...
TM editors’ note: This article discusses a penny stock and/or microcap. Such stocks are easily manipulated; do your own careful due diligence. Summary Bucha is trading at an 80% discount to fair value. The newly emerged company will be highly profitable, spinning off significant cash. A NASDAQ up listing should push the share is even higher. Congratulations to those who followed my analysis last year and bought Bucha (ABRW), formerly American Brewing, when it was trading under $.30. I liked the company then but the recent merger transformed Bucha to a whole new level. Another trading opportunity was presented following my 5/23/16 Tweet,...
Bubbles are bursting everywhere for the Truman’s of this world today, previously coddled in whatever version of reality TV they resided – waking up to the scary truth we are trapped in a forgotten episode of the Twilight Zone (but never forgotten by Orwell) – the one where psychopath fascists take control of the world and kill us all. That’s what happens when you’re a naïve idiot like Truman, getting all your information from a bankrupt society attempting to preserve itself through lies, script, and authority. This characterization of ‘life’ for increasing numbers of the disenfranchised middle class is much like Truman’s awak...
Bubbles are bursting everywhere for the Truman’s of this world today, previously coddled in whatever version of reality TV they resided – waking up to the scary truth we are trapped in a forgotten episode of the Twilight Zone (but never forgotten by Orwell) – the one where psychopath fascists take control of the world and kill us all. That’s what happens when you’re a naïve idiot like Truman, getting all your information from a bankrupt society attempting to preserve itself through lies, script, and authority. This characterization of ‘life’ for increasing numbers of the disenfranchised middle class is much like Truman’s awak...