Economy

Get Ready for 2022’s “Big Short”

Get Ready for 2022’s “Big Short”

On Sunday morning, my wife and I watched The Big Short. It’s about four hedge funds that shorted the U.S. mortgage-backed securities (MBS) market starting in 2005. Everyone else assumed MBS were the safest investment on the planet. As clueless Wall Streeters in the movie kept saying, “Who doesn’t pay their mortgage?” But these guys…

Invest in This Alpha Dog of the Dow

Invest in This Alpha Dog of the Dow

Things are hard to find these days. COVID tests and face masks are in short supply. And a shortage of bus drivers is affecting my local school district. Some things are hard to find in the stock market as well … especially for income investors. The yield on the S&P 500 is a measly 1.3%….

This Is What Bitcoin Is Worth

An old Wall Street adage says that “speculators who die rich, die before their time.” And if you look at the Forbes 400 List, it’s filled with people who achieved great wealth by investing — not speculating. So, why would you ever want to speculate? Before I understood the difference between investing and speculating, I…

Shake It Up With This Leading ETF

Shake It Up With This Leading ETF

“A what?” That’s the response from my 10-year-old when I asked if he’s ever played with an Etch A Sketch. As he toyed with his iPad, I told him it’s the original tablet that you simply shook to start over. Which makes it the perfect tablet for writing a script for this stock market —…

Innovation Will Outlast Inflation

“You paid how much for that turkey?!” I know I wasn’t the only one who heard a question like that at Thanksgiving dinner. We just saw the most expensive Thanksgiving ever. Prices for food have been going through the roof. For example… 16-pound turkeys: +24%. A dozen dinner rolls: +15%.  Pumpkin pie mix: +7%. So,…

Your Guide to Clean Energy’s $550 Billion Windfall

Did you see the big news? The Build Back Better Act passed the House of Representatives on Friday. The $2.2 trillion bill is one of the biggest pieces of legislation in U.S. history. And $550 billion of that will go toward clean energy projects and other initiatives. The House Budget Committee hails it as “the…

2 Plays to Profit on Those Bare Necessities

2 Plays to Profit on Those Bare Necessities

Refresh… Refresh… Refresh… That sums up a couple hours I spent on Walmart’s website the other night. The rumor is that they were restocking Xboxes for online purchases, and I’m hellbent on snatching one as a Christmas gift for my boys. Every time I refreshed my screen, I got the same message: “30 minutes before…

Profit With This Supply-Crisis Solution

Profit With This Supply-Crisis Solution

U.S. supply chains are gridlocked. Prices are rising on short supplies. Warnings abound of delays in Black Friday and Christmas deliveries. “Get your orders in or you won’t get your stuff until 2022!” is the mantra from retailers to wholesalers to factories. At the heart of it all: massive container ships marooned outside American ports….

Inflation? Stagflation?? 3 Plays for the Worst-Case Scenario

Inflation? Stagflation?? 3 Plays for the Worst-Case Scenario

The Fed insists inflation will be short-lived. But … what if that’s not the case? A steepening yield curve means the bond market may be worried about exactly that. If the Fed tightens monetary policy into a weakening global economy, stagflation could become a self-fulling prophecy. Does that mean we’re in for a repeat of…

1 ETF to Play the Energy Crisis

1 ETF to Play the Energy Crisis

For me, one of the more interesting aspects of living through this pandemic is the knock-on effects the virus is having outside the human body. One is how virtual spaces have redefined how we work and receive health care. Another is the breakthroughs in medical technology that deliver vaccines in record time … while opening…