Responding to Failure, Meek Jobs Report, Strong Appreciation
A story of how two brilliant investors responded to an economic crisis that left them nearly wiped out. Why was John Keynes able to recover? John was able to change his mind and see failure as a learning opportunity. Rates – increased very marginally this week as the price of Mortgage Backed Securities degraded slightly. […]
Short Squeeze, Fed Still Buying, Strong Home Sales
If you are like me your probably read at least 5 stories about Gamestop this week. This is a great example of a ‘short squeeze.’ There has been other speculation about ‘pump and dump’ strategies and whether it really is a David vs. Goliath story (Cleary in runs like this the ones that got in […]
Yellen is Back, Market Euphoria, MBS Follow Technicals
During her confirmation hearing Treasury Secretary Janet Yellen – previous Fed Chair who is supported by all living former Treasury secretaries – told congress it’s time to go big while rates are low. The head of both our fiscal policy (treasury secretary) and our monetary policy (federal reserve) are both quick to open their wallets […]
Necessity Breeds Innovation, Freight Increases, Stimulus Plan Released
One exciting outcome of the pandemic is innovation. This story is a classic example of starting a business out of need for income and demand in the market. According to the census bureau this is happeningaround the country at the fastest pace in a decade. Rates – recovered some of their losses from the previous […]
2021 Indicators, Jobs Report, Rates Increase
Insight for 2021: – Basic needs: Between the end of August and December the number of Americans not getting enough food increased by 5M and is now up to 27M or 1 in every 8 Americans. Hopefully this will drop back down by 5M with new stimulus extending unemployment benefits– Service spending: spending money on […]
Rural Relocation Bonus, Massive Appreciation, Jobs Update
Instead of offering tax incentives to lure corporate headquarters, some rural cities are offering ‘relocation bonuses’ of up to $10,000 & a new bike to draw young professionals working remotely to their towns. Rates – improved slightly this week as Mortgage Backed Securities (MBS) bounced up, breaking outside of the narrow December trading range. This […]
Capitalist Xmas Tree Story, Rates Flat, Jobless Claims Increase
Wanna understand the economics of Christmas Tree sales? Why not drive to the auction house and buy a truckbed full? Spoiler alert – they didn’t end up making a profit but one of their customers was a composer and made a great carol out of it. Rates – the price of Mortgage Back Securities (MBS) […]
Shipping Delays, Rates Mellow, Market Euphoria?
Shipping delays, especially for smaller retails who use the more affordable USPS, are worse than ever this year as online retail volume increased nearly double the expected 20% increase. The retailer in this story experienced 20% of orders delayed up to 4 days (in addition to loss of packages) and had to eat the cost […]
Thanksgiving Dinner 35 Year Low, Homes Appreciate 7% Nationwide
For 2020, the average cost of a Thanksgiving Dinner for 10 people was $46.90. This is a 4% decrease from last year and the lowest level since 2010. If you adjust for inflation, there hasn’t been a cheaper year since the survey started in 1986. Turkey prices dropped 7% year over year to $1.21 per […]
New Construction Demand, Home Sales on Fire
“We have been under producing for the past decade,” – Lawrence Yun, chief Economist of NAR hopes that an infastructure bill will bring high speed internet and public transportation to rural areas increasing the demand to build in places where it is cheaper and quicker to build housing. Rates – improved slightly this week as […]