Month: September 2022

  • Another blow to the US housing market

    Quick take from me, as I’ve been thoroughly exhausted the past couple days… 1: Another blow to the US housing market, 30 year fixed mortgage rates are quickly approaching 7%. Affordability is getting wrecked and new buyers are likely to remain on the sidelines. Many renters will keep renting and young adults will remain living with […]

  • Investors: You Better Buckle Up

    Markets have a way of making a fool of most investors. On June 16th, 2022 the current bear market made an interim low and started rallying. On June 22, as the market began to rise, I warned readers to beware of the sucker’s rally. Sucker’s rallies trick people into thinking the worst is over, drawing investors […]

  • Fed driving full speed towards a cliff

    Jay Powell is pushing the economy to recession. He has made it clear that inflation is his number 1 priority and yesterday he stated that “inflation has not really come down”. Today, the market is still digesting the news and strategists are revising their forecasts. The fact that Powell publicly stated he believes the Fed hasn’t made […]

  • 5 Reasons I Could Never be a Landlord

    Many people have built wealth with real estate. Not me. I get it. The idea of buying a property, holding it for many years while it appreciates and spits out monthly cashflow is appealing. Over the long run, real estate has been a great investment. Particularly unique to real estate is the ability to get […]

  • Try Being a Bull

    “We’re seeing that volume decline in every segment around the world.” — FedEx CEO Raj Subramaniam I’m a glass half empty kind of person. I’ve seen so many blow-ups that I’m always on the lookout for the next one. I recognize my mindset, so I fight hard to find reasons for optimism. This mental tug […]

  • Real Pain

    Inflation-Adjusted Earnings Yield Lowest Since 1970s The image quality of the chart below is garbage, but I felt the information is so important that I must share it with you. The inflation-adjusted earnings yield on the S&P 500 is at its lowest point since the 1970s! The earnings yield (which happens to be the inverse […]

  • Demand Must Be Destroyed

    There is a narrative out there that when prices are high, we can happily resolve the issue by producing more. After all, inflation occurs when too much money is chasing too few goods. So increasing supply is an intuitive solution. But it’s largely incorrect. The premise ignores the cost of increasing supply. Unless unutilized capacity is already […]