Jacque's Post Archives

July 26, 2024

Jacque's Post

(SUMMARY OF JOHN’S JULY 24, 2024, WEBINAR)

July 26, 2024

Hello everyone

TOPIC

The Great Rotation is On

TRADE ALERT PERFORMANCE

July = +5.17% MTD

Since inception = 701.82%

Average annualized return = +51.62% for 16 years

Trailing one year return = +38.93%

PORTFOLIO REVIEW

Risk on

(GLD) 8/$210-$215 call spread 10%

(CCI) 8/$90-$95 call spread 10% (profits taken on this trade on July 25)

(BRK/B) 8/$405 - $415 call spread 10%

(DE) 8/$330-$340 call spread 10%

(IBKR) 8/$110-$115 call spread 10%

(SLV) 8/$23-$25 call spread 10%

(JPM) 8/$190-$195 call spread 10% (profits taken on this trade on July 25)

(DHI)8/$150-$155 call spread 10% (trade added on July 25)

Profits were taken on (TSLA) and (NVDA) put spreads this week.

METHOD TO MY MADNESS

The cool June CPI was a game changer, according to John, assuring a slower economy and lower interest rates.

Leadership flipped from big tech to industrials, precious metals, financials, and bonds. They will all be active for the rest of 2024.

The first interest rate cut in five years in September is now a certainty.

All interest rate sectors catch huge bids.

US dollar gets dumped and could stay weak for years. (So, you should be looking to go long these plays FXA, FXB, FXE. Scale in by buying small parcels of shares at different prices. You are then building a good position)

Technology stocks will recover after a correction lasting months.

Energy gets dumped on recession fears if the Fed acts too slowly.

Buy stocks and bonds on dips.

THE GLOBAL ECONOMY – SLOWING

Fed Beige Book shows a slowing economy, assuring a September interest rate cut.

Inflation plunges to 3.0%, a new two-year low.

US Manufacturing jumps, up 0.4% in June.

US Retail sales hit a three-month high, up 0.4% last month.

Chinese GDP disappoints at 4.7% in the second quarter, missing their 5.0% target. Inflation comes in weak, at only 0.2%.

PPI rises 0.2%, up 2.6% year over year.

Consumer sentiment is at a three-year low at 66.0%, down from 68.5 as the economic slide continues.

STOCK – SUMMER CORRECTION

Money pours into equities. According to LSEG data, investors bought a net $21.7 billion worth of U.S. equity funds during the week.

Bank earnings beat, and the stocks are rising in expectation of falling interest rates, with (JPM), (BAC), and (C) reporting. Wells Fargo (WFC) was disappointed again. Buy banks on dips which have been on a great run all day.

Small cap stocks poised for major chart breakouts, after underperforming for years. Remember, 60% of these are regional banks which would love to see lower interest rates.

Netflix grows subscribers, following a crackdown on password sharing ebbed and viewer attention moved to summer sporting events including the Euro soccer tournament.

CrowdStrike flaw crashes global transportation cancelling 4,000 flights in the U.S. alone, costing airlines billions.

New China chip bans send Big Tech stocks tumbling.

(Buy NVDA if it gets to $100 and/or deep in the money call spreads/LEAPS. AMZN is cheap – buy. ROM – buy pre-election. CAT, DE, and Home builders – all buys on dips. ITB – a great candidate for a LEAPS trade on a pullback).

BONDS – HOLDING UP

Cold CPI assures September interest rate cut. This sends all fixed-income securities soaring.

Bonds holding gains even in the face of a summer stock correction.

Bonds see the biggest cash inflows since 2021.

The top ticker symbols are (SLRN), (BRLN), (BKLN), and (FFRHN).

Buy (TLT), (JNK), (NLY), (SRRN) and REITS on dips.

FOREIGN CURRENCIES – GOODBYE DOLLAR

Dollar falls against all currencies, including the Japanese Yen.

A coming decade of falling interest rates makes the dollar a big “SELL”.

The prospect of falling interest rates means that the greenback is toast.

It’s all in response to the blockbuster negative CPI.

Buy (FXA), (FXE), (FXB), (FXC).

ENERGY & COMMODITIES – RECESSION FEARS

U.S. Oil production hits an all-time high, as are energy company profits, and is producing more oil than any country in history.

The world record was set by the U.S. in 2023, averaging about 12.9 million barrels per day. And this exceeded the Trump-era record, an average of about 12.3 million barrels per day in 2019.

U.S. production of dry natural gas = new high in 2023, as did U.S. crude oil exports.

Overproduction has crushed prices and made energy the worst-performing stock market sector of 2024.

Gasoline demand has been in long-term secular demand since 2019.

Replacement by EV’s and the shift out of cars into planes are big factors.

PRECIOUS METALS – NEW HIGHS

Gold hits new all-time highs.

Silver takes a break from the economic slowdown and enters a sideways range.

Miners have started to outperform metals for the first time in years, indicating an increase in investor leverage.

A global monetary easing is at hand.

Buy precious metals on the dip because rates have to fall eventually.

Miners are expanding their operations and ramping up production as prices for the precious metal climb to decade highs.

Buy (GLD), (SLV), and (WPM) on dips.

REAL ESTATE – WAITING FOR RATES

Single Family Home starts hit 8 month low, down 2.2%.

Higher mortgage rates hurt, suggesting the housing market was likely a drag on economic growth in the second quarter.

The report from the Commerce Department on Wednesday also showed permits for future construction of single-family houses dropped to a one-year low last month, indicating that any anticipated rebound in activity if the Federal Reserve cuts interest rate in September as expected, could be muted.

This market needs actual lower rates to pick up, not just hopes of one.

Record Prices but Scarce Sales Volume. U.S. housing is unaffordable but aggregate demand continues to push prices higher.

TRADE SHEET

Stocks – buy any dips

Bonds – buy dips

Commodities – buy dips

Currencies – sell dollar rallies, buy currencies

Precious metals – buy dips

Energy – buy dips

Volatility – buy $12

Real estate – buy dips

Cheers

Jacquie

July 24, 2024

Jacque's Post

(CONSUMERS ARE BEING SWINDLED IN THE BANKING WORLD)

July 24, 2024

Hello everyone,

Savings account traps: why billions are disappearing

Research shows that Australian adults are losing an average of $1500 per person every year through using the wrong savings accounts.

The research paper by financial services technology company Upworth says consumers collectively miss out on about $30 billion in interest annually, often because of confusing accounts, information overload, or overconfidence.

It says cash deposits currently pay between 0% and 5.75%, and almost three-quarters of bonus interest savings accounts do not pay the bonus rate because savers don’t meet the conditions required.

Upworth illustrates the fact that complex product design often makes it hard to compare products. The headline interest rate is a very different concept from the effective interest rate an individual earns. Base rates, bonus rates, and introductory rates all come in the mix.

Upworth co-founder Maxime Chaury said people with deposits were lending money to their banks, and banks were trying to minimize their borrowing costs.

Chaury points out one of the easiest ways to do this is to make their product offering confusing and have as many low-interest-rate savings accounts as possible and as few high-interest-rate savings accounts. And what that does is increase the chances you will end up with a low-interest rate account.

Chaury says that people had psychological biases that resulted in them earning less interest.

This included overconfidence, loss aversion, and preferring the status quo. Information overload also played a role. We all know that when we are faced with too many options and an overload of information, we are typically overwhelmed. And rather than engage with any complexity, we are likely to default to inaction. And the banks are counting on that behaviour.

Chaury said conditions attached to many accounts – such as minimum monthly deposits or limited withdrawals – could drastically reduce interest, while introductory interest rates were only temporary, typically three to six months.

Banks understand many people will never change their savings account, despite the rate dropping significantly after the introductory period.

Savings rates are littered with fine print (that many people never read), designed to limit the amount of interest a bank has to pay its customers, from balance-based rate tiers, age minimums and maximums, and monthly bonus rate conditions.

There are millions of big bank online saver customers who signed up for an introductory rate five or ten years ago, which gave them a higher interest rate for the first few months or so and have now been earning next to nothing for years because they haven’t been bothered to switch to a more competitive account.

Australians aren’t the only ones confused about their Savings Accounts.

The largest cybersecurity breach in Australian history

Cybersecurity experts say the highly sensitive data of 12.9 million Australians, stolen from eScripts provider Medi Secure, has already been sold on the dark web and is up for sale again.

MediSecure confirmed in May it was the victim of a ransomware attack in 2023 and last week revealed the scale of the breach, which puts it among the largest in Australian history.

Data stolen includes names, phone numbers, addresses, and Medicare numbers, as well as sensitive medical information such as which drugs people had been prescribed and why they were taking them. It was previously unclear if the data had been sold, but cyber threat intelligence analysts say there’s a strong indication that at least one sale has taken place.

Cheers,

Jacquie

July 22, 2024

Jacque's Post

(A GLOBAL PORTFOLIO + REAL ASSETS MAY BE THE BEST INVESTMENT FOR THE FUTURE)

July 22, 2024

Hello everyone,

The week ahead calendar

Monday, July 22

8:30 a.m. Chicago Fed National Activity Index (June)

Earnings: Verizon

Tuesday, July 23

10 a.m. Existing Home Sales (June)

10 a.m. Richmond Fed Index (July)

Earnings: Visa, Enphase Energy, Capital One Financial, Texas Instruments, Tesla, Alphabet, Freeport McMoRan, Lockheed Martin, Sherwin-Williams, Comcast, Coco-Cola, Kimberly-Clark, General Motors, United Parcel Service, Philip Morris International, GE Aerospace

Wednesday, July 24

9:45 a.m. PMI Composite preliminary (July)

9:45 a.m. Markit PMI Manufacturing preliminary (July)

9:45 a.m. Markit PMI Services preliminary (July)

Earnings: O’Reilly Automotive, Chipotle Mexican Grill, International Business Machines, Las Vegas Sands, Ford Motor, Align Technology, Lamb Weston, Next Era Energy, AT&T, GE Vernov.

Thursday, July 25

8:30 a.m. Continuing Jobless Claims (07/13)

8:30 a.m. Durable Orders preliminary (June)

8:30 a.m. GDP first preliminary (Q2)

8:30 a.m. Initial Claims (07/20)

8:30 a.m. Wholesale Inventories preliminary (June)

11:00 a.m. Kansas City Fed Manufacturing Index (July)

Earnings: American Airlines, CBRE, Valero Energy, Hasbro, Tractor Supply, RTX, Northrop Grumman, Southwest Airlines, Honeywell International, AbbVie, PG&E, Norfolk Southern

Friday, July 26

8:30 a.m. Personal Consumption Expenditures price index (June)

8:30 a.m. Personal Income (June)

10:00 a.m. Michigan Sentiment final (July)

Earnings: T.Rowe Price Group, Bristol-Myers Squibb, Colgate-Palmolive, 3M

This week we will get insight into the economy from more than half the broad market index. Results from earnings this week should give investors valuable information about the economy, and the consumer.

We have had data showing a slowing economy, and inflation easing, but corporate results and commentary could give investors a very transparent lens into how the consumer is really traveling in this economy.

On the investor side of the fence, that could determine what happens to markets in the short to medium term.

Last week, the S&P 500 and the Nasdaq dropped as we saw investors pivot away from the mega-cap tech leaders into the market laggards, such as small caps, healthcare, and energy. This rotation out of the mega-cap tech stocks has been a long time coming, so expect some volatility as the dust settles from this stampede out of one sector and into several others.

To say that the market is due for a rest would be an understatement. Expect some corrective movement as we digest near-term market antics and political turmoil.

Macroeconomic data is also reported this week, which will give the investors some clarity on how the Fed may act in the near term. Let’s be mindful that there is potential for the economy to deteriorate much faster than most people are expecting right now. If this comes to pass, and the Fed is too slow to act, the market may give an abrupt response.

There have been significant events in the world over the last week or so. The attempted assassination of Mr Trump, an IT outage caused by CrowdStrike, and today, July 21, Mr Biden withdrawing from the Presidential race. Even though it is mostly economic data, company earnings, and Fed policy that moves markets, we must also consider the policies of political parties and their potential effects on equities/sectors and the dollar moving forward.

Let’s look at the classic 60/40 portfolio split.

According to Bank of America (BofA) analysts, over the past decade, the Vanguard Balanced Index Fund (VBINX), which basically follows the classic 60/40 formula, has returned 8.24%.

The 60/40 portfolio provided its classic diversification benefit only when inflation was running at less than 2%. That encompasses much of the two decades of the current century, a limited span on which much of the historical data supporting the 60/40 is based.

International diversification makes sense given the strong preference for a weak dollar by both Republican and Democratic parties. Republican policies show that they see a strong dollar as a hindrance to U.S. manufacturers and a subsidy for cheap imported goods for U.S. consumers. The Democrats continue to back tariffs. Neither side has shown support for free trade or a stable dollar.

This landscape means that we are likely to see less stability and diminished purchasing power. And with such a backdrop, it will be important to look at global equities, not just U.S. stocks, and real assets, most notably gold (which we have seen hitting new highs recently) and cryptocurrencies (which are likely to face fewer regulatory constraints), rather than bonds with fixed claims on dollars losing value in real terms.

In other words, regardless of investors’ political preferences, they must accept that the future is unlikely to resemble the past. Inflationary trade and budget policies are favoured by both Democrats and Republicans, differing only in degrees. BofA analysts contend that’s bad for long-term bonds, but favourable for inflation hedges such as commodities.

History draws a telling picture. BofA analysts point to the entire post-World War II period which showed that a 60/40 portfolio hedged with the latter portion in commodities did better than with long-term Treasury bonds. And going back even further to the 1919 era, it was found that bonds were a drag on returns, with a 60/40 portfolio returning 8.8% per annum versus 10.3% for U.S. equities.

However, four decades of falling interest rates and inflation after 1980 resulted in bonds providing a substantial contribution to balanced portfolio returns. Traditional conservative policies promoted by former President Ronald Reagan were part of this era. These have been replaced by progressive or populist policies of the current left and right.

Global diversification should be the catchcry. Let’s not forget to point out that Vanguard’s 60/40 portfolio is globally diversified. The 60% equity portion is 36% in broad U.S. market stocks and 24% in non-U.S. stocks. The 40% bond portion is 28% in broad U.S. fixed income and 12% non-US., nondollar bonds. This mix provides a significant hedge against the decline in the dollar’s value.

Vanguard Balanced Index Fund (VBINX) weekly chart

PSYCHOLOGY CORNER

Balance Trading Risks

It is a common psychology of trading to take positions in the stock market even when there is no meaningful opportunity. Such traders can’t resist the temptation to play in the market and end up losing money.

A successful trader, however, understands that capital protection is a more important objective of trading than profit maximization. Profit maximization can be achieved only after the capital is protected. A successful trader knows when and what to trade as well as he knows when not to trade.

A trader trades mindfully using safety measures like stop loss to protect capital and follows a disciplined trading plan to balance risks while minimizing losses.

WHAT IS…Capital Gains Tax?

Tax on gains(profits) you make from the sale of capital assets, like stocks and other investments. Under U.S. tax laws, if you hold an investment for more than a year before you sell it for a gain, you may qualify for a long-term capital gains tax rate. Gains from investments held for less than a year are usually considered short-term capital gains and are taxed as ordinary income (which is usually a higher tax rate than long-term capital gains).

MARKET UPDATE

S&P500 – The stock market has reached an interesting stage. The S&P500 made a Bearish “Outside Reversal” week which cautions us to prepare for a possible trend change. However, it is too early to call an end to this bull market. From an Elliott Wave perspective, the S&P500 can be interpreted to have completed a Wave 3 advance (from the 3,809 low of February 2023), to signal the start of a Wave 4 correction. Sustained break below 5,440 would confirm this correction is underway.

Wave 4 correction would likely find support between 5,265 -4,954.

There remains a final Wave 5 advance ahead before this bull market is complete. Only a sustained break below 4,954 would frustrate this outlook.

GOLD – Gold’s selloff last week from the $2,484.00 high can be viewed as corrective. In the short term, resistance now lies at $2,420/$2450. There is a risk of a test of the $2350/$2325 support area over the coming days.

BITCOIN- Bitcoin looks to have completed an irregular corrective structure on its July 5 low of $53,500. An advance appears in progress which should target the low $70k area. Support lies around the low $60s.

AUSTRALIAN CORNER

An alarming number of Australian homeowners may be forced to sell their homes, if interest rates stay elevated into next year. According to the Bureau of Statistics, about 3.3 million Australian households have a mortgage. Should rates stay at current levels (4.35%) into 2025, 165,000 households “would have to sell”, a survey found. The unemployment rate nudged up 0.1% to 4.1% in June. Many economists believe unemployment needs to be half a percentage point higher for inflation to cool.

GOOD VIBES CORNER

SOMETHING TO THINK ABOUT…

Cheers

Jacquie

July 19, 2024

Jacque's Post

(AIRSPACE DEVELOPMENT IS GROWING IN AUSTRALIA)

July 19, 2024

Hello everyone,

Adding rooftop units is like making money from air

According to Warren Livesey, Airspace development is growing in Australia. Livesey finds old buildings around Sydney that have the capacity to hold a home or two on top and checks their zoning requirements.

In Sydney alone, the industry is valued at $150bn, with the potential to build homes on top of 90,000 strata buildings. Livesey says that the average strata rooftop is about 300 square metres.

Livesey points out that in Sydney there are about 30 million square metres of unused roof space in urban areas that could be used for housing. He goes on to say that there are about 100 million square metres in Australia above our stratum retail buildings that can be used for new rooftop homes.

Rooftop space is about $2500 per square metre, but in some areas, including Sydney’s eastern suburbs, it could go as high as $10,000.

Livesey explains that if you live in an area where you can build up to 12.5 metres and the building only goes to nine, you have that 3.5 metres of airspace that can actually be sold off and be rebuilt by somebody else.

It’s an industry that is still relatively secretive in Australia. Building owners request buyers’ agents, like Livesey, as well as developers and the new property owner to sign non-disclosure agreements on the deals.

Basically, owners don’t want anyone to know. The fear is that if the neighbours found out they would complain and object to the deal before a development application could be approved by a council.

Livesey has been selling between three and four spaces a month. He runs buyairspace.com.au. He set up the business after he had spent 10 years selling airspace in New York, London, and Paris.

He sees a big opportunity to build thousands of homes on top of existing buildings across Australia and says the fact that the homes are more sustainable is proving popular.

Most projects were for modular homes – homes that are built off-site and often take little to put together once on site – with cranes lifting them on top of properties room by room.

This is what makes them more sustainable – modular homes are built in controlled environments where manufacturers have more control over what products are used and how they are built.

If you want to find investments that are cheap, look abroad.

Europe’s Stoxx 600 index and the Japanese Nikkei 225 hit record highs earlier this year, along with the S&P500. But the Stoxx and Nikkei are trading at much more attractive valuations. FactSet data shows the Stoxx is trading at 15 times trailing 12-month earnings, while the latter has a multiple of 23. The S&P500, meanwhile, has 27 times earnings multiple.

This creates an opportunity for investors to find attractive investments at a cheaper valuation.

Europe has shown resilience in the face of recessionary concerns over mounting Russia-Ukraine tensions and a potential energy crisis.

The Stoxx 600 has gained nearly 8% in 2024, while the UK’s FTSE 100 is up 6%.

Here are exchange-traded funds to look at:

iShares MSCI Japan ETF (EWJ): The fund is up 11% year to date and charges 0.5% in fees.

iShares Core MSCI Europe ETF (IEUR): The ETF has climbed 6% in 2024. It has an expense ratio of 0.11%.

Franklin FTSE United Kingdom ETF (FLGB): The fund has gained 8% this year and has an expense ratio of 0.09%.

iShares Core MSCI Europe ETF (IEUR) Weekly chart

Franklin FTSE United Kingdom ETF (FLGB) Weekly chart

Portfolio Update

Options:

On the 7^{th of} February, I recommended options and stock buys on Microsoft, Exxon Mobile, and Barrick Gold.

(XOM) 105/110 and 110/115 out of the money LEAPS expiring on January 17, 2025. These are well in the money, so if you would like to take profits on these, do so. I know there is still time left in these positions, but when the market is giving you a gift, why not take it? The profit is only realized when the money is taken off the table.

I recommended 15/17 January 17, 2025, out of the money LEAPS in (GOLD). These are also in the money. It is up to you when you choose to take profits from this position. I do see gold continuing to rally.

LEAPS were also recommended on Microsoft (MSFT), but strikes were not specified. Again, it is up to you, when you take profits here, but just be mindful that the position was created when Microsoft was $403.66, so any position would be well in the money.

Cheers,

Jacquie

July 17, 2024

Jacque's Post

(AUSTRALIA HAS BECOME A “FOOD SUPERPOWER”)

July 17, 2024

Hello everyone,

Australia has quietly become a “food superpower” over the past decade, as local farmers have increased their output by more than 90%, according to billionaire paper, packaging, and recycling magnate Anthony Pratt.

The Australian food production industry now represents 6% of Australia’s gross domestic product (GDP).

Over the past 10 years, 1200 food factories have been built across the nation and food exports have more than doubled from $29 billion to $59 billion.

Beef exports to China over the period have grown 200%.

More than one in four Australian manufacturing jobs are in food and beverage manufacturing – and food is by far the largest manufacturing sector in our economy.

Australia has secured 11 new free-trade agreements (FTA) in recent years, including the landmark Australia-India FTA that came into effect in December 2022.

It now has 18 FTAs in place, which has helped diversify the nation’s food exports at a critical time.

Australian barley exports to ASEAN countries have tripled in the past three years and Australian lobster exports to ASEAN have quadrupled.

$300 million worth of premium wine is now also being sold to ASEAN countries for triple the price Australia would get in the American market.

Cash-free charging trial for EV drivers

One of Australia’s largest electric car-charging networks will test drive cashless technology to remove another barrier to adopting the transport technology.

Evie Networks announced plans to introduce “Auto charge” technology to more than 80% of its network on Wednesday, to be tested by a select group of users before a widespread roll-out in August.

The technology comes in addition to other industry efforts to reduce drivers’ reliance on apps at charging stations, including RFID cards that work across networks.

Evie Networks public charging head Bernhard Conoplia said the company invested in the technology after drivers expressed concerns about the complexity of charging vehicles at public facilities.

Thirty percent of Australian drivers have expressed a lack of confidence about mastering EV charging-related technology, which is why Evie Networks has prioritized activating the Auto charge feature.

The feature, which must be set up in the company’s app, is compatible with electric vehicles from brands including Tesla, BYD, MG, Volvo, and Polestar, and automatically recognizes the vehicle when users plug in a charging cable.

The feature eliminates the need to use the Evie Networks app to identify the location of the charger or an RFID (radio frequency identification) credit card to tap on a reader.

The technology would be made available to all users at 83% of its 255 charging locations in early August.

Electric cars made up eight percent of new vehicles sold in Australia during June, according to the Federal Chamber of Automotive Industries, and represented more than 50,000 vehicle sales in the first six months of the year.

Australian real estate stocks you should be watching as the Fed cuts and bond yields fall

UBS says Australian real estate stocks could benefit from expected US interest rate cuts, despite local rate cuts not anticipated until 2025.

UBS says names like Stockland, Scentre Group, and Goodman Group are attractive amid a falling yield environment.

UBS analysts said that Stockland is currently trading at a price-to-earnings ratio of 13 and is expected to deliver a 3-year EPS compound average growth rate of 7%.

TOP PERFORMING ASX 200 REITS

Ticker Company Name Last 1 Week

Cheers,

Jacquie

July 15, 2024

Jacque's Post

(RESHUFFLING THE SECTOR LANDSCAPE IN READINESS FOR A RATE CUT)

July 15, 2024

Hello everyone,

Week ahead calendar

Monday, July 15

8:30 a.m. Empire State Index (July)

12:30 p.m. US Fed Powell Speech

Earnings: Goldman Sachs, BlackRock

Tuesday, July 16

8:30 a.m. Export Price Index (June)

8:30 a.m. Import Price Index (June)

8:30 a.m. Retail Sales (June)

10 a.m. Business Inventories (May)

10 a.m. NAHB Housing Market Index (July)

8:30 a.m. Canada Inflation Rate

Previous: 2.9%

Forecast: 2.9%

Earnings: J.B. June Transport Services, State Street, Morgan Stanley, Bank of America, PNC Financial Services Group, United Health Group.

Wednesday, July 17

8:30 a.m. Building Permits (Preliminary)

8:30 a.m. Housing Starts

9:15 a.m. Industrial Production

9:15 a.m. Manufacturing Production

2:00 p.m. Fed Beige Book

2:00 a.m. UK Inflation Rate

Previous: 2.0%

Forecast: 2.0%

Earnings: United Airlines, Discover Financial Services, U.S. Bancorp, Johnson & Johnson, Citizens Financial Group, ASML

Thursday, July 18

8:30 a.m. Continuing Jobless Claims (07/06)

8:30 a.m. Initial Claims (07/13)

8:30 a.m. Philadelphia Fed Index (July)

10:00 a.m. Leading Indicators (June)

8:15 a.m. Euro Area Rate Decision

Previous: 4.25%

Forecast: 4.25%

Earnings: Netflix, M&T Bank, KeyCorp, Domino’s Pizza, D.R. Horton, Blackstone, Taiwan Semiconductor.

Friday, July 19

2:00 a.m. UK Retail Sales

Previous: 2.9%

Forecast: -0.4%

Earnings: SLB, American Express, Halliburton, Fifth Third Bancorp, Regions Financial, Huntington Bancshares

PREPARING FOR THE INEVITABLE RATE CUT

With interest rates predicted to fall, the bond Universe is looking increasingly attractive.

Falling interest rates tend to be a good thing for the bond market because interest rates and bond prices historically share a strong, inverse correlation.

Three niches of the bond market – government bonds, investment-grade corporate bonds, and high-yield bonds – look more attractive due to the ongoing shift in interest rate expectations for the second half of 2024.

Morningstar recently published its 2024 outlook on interest rates and projected that the federal funds rate could drop as low as 3.75-4.00% by the end of 2024. Morningstar expects that downward trend to persist into the next year, forecasting that interest rates could drop to a range of 2.25-2.50% by the end of 2025. (I have been forecasting this for some time in my Zoom monthly meetings).

Like Morningstar, PIMCO also expects rate cuts this year. It sees 75 basis points of net cuts in 2024, which implies that the federal funds rate will drop to roughly 4.50% by the end of 2024.

So, now we understand that it is almost a done deal that the Fed will cut this year, and maybe more than once, what should we be looking at to capitalize on this landscape?

Bond products to consider in 2024

One that immediately comes to mind is the iShares 20 Plus Year Treasury Bond ET (TLT).

You should be buying the TLT and/or buying LEAPS one or two years out. If you want to be conservative, buy in the money LEAPS, if you want to be more aggressive, buy out of the money LEAPS.

As shown here in this chart, the expected returns for government bonds, aggregate bond funds, corporate bond funds, corporate bonds, and high-yield bonds have trended above their long-term averages.

Source: Morningstar

The current yield-to-worst (YTW) for each of the above-listed bond categories has climbed well above its respective long-term average.

Yield-to-worst is a projection for future returns and represents an estimate of the lowest possible yield for a bond by averaging returns across a wide range of different scenarios. Investors use yield-to-worst as a risk management tool to evaluate the potential downside risk associated with a particular bond investment.

But we always must remember, that no investment is without risk. If you are very risk-averse, look at investment-grade bonds, which are typically issued by financially stable and reputable organizations with access to considerable financial resources.

Two well-known ETFs that focus on high-quality corporate debt include the iShares iBoxx Investment Grade Corporate Bond ETF (LQD), and the iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB). Investors and traders looking for exposure to international corporate bonds can also consider the Invesco International Corporate Bond ETF (PICB).

In addition to high-grade corporate bonds, investors and traders may also consider high-yield bonds. These bonds, often referred to as junk bonds, are a category of corporate bonds that have credit ratings below investment grade. And this means that the companies issuing these bonds have a higher probability of defaulting on their interest rates or failing to repay their principal at maturity.

The potential returns are higher for this category of bonds due to their elevated credit risk. If you are risk-averse, this category might not be your cup of tea.

Two well-known high-yield ETFs include the iShares iBoxx High Yield Corporate Bond ETF (HYG) and the SPDR Bloomberg High Yield Bond ETF (JNK). Investors and traders who are interested in internationally focused high-yield bonds can also consider the iShares International High Yield Bond ETF (HYXU).

Returns for bond ETFs since rate expectations started to shift. (returns from Oct. 19, 2023, through Jan. 3, 2024):

iShares 20 Plus Year Treasury Bond ETF (TLT), +19%
iShares iBoxx Investment Grade Corporate Bond ETF (LQD), +12%
Invesco International Corporate Bond ETF (PICB), +10%
iShares 5-10 Year Investment Grade Corporate Bond ETF (IGIB), +9%
iShares iBoxx High Yield Corporate Bond ETF (HYG), +7%
SPDR Bloomberg High Yield Bond ETF (JNK), +7%
iShares International High Yield Bond ETF (HYXU), +7%

Considering the above returns, TLT’s performance outshines all bond categories. It is theoretically less risky than corporate bonds and high-yield bonds, and arguably the best bet for investors and traders who want exposure to the bond market but also want to minimize risk.

TLT tracks the performance of U.S. Treasury bonds with maturities of 20 years or more. As such, TLT provides investors with exposure to long-term U.S. government debt, which is generally considered one of the safest assets in the fixed-income universe.

Of course, I am not saying that significant rallies in corporate and high-yield niches will not occur. But they carry more risk than TLT. Ultimately, it is up to each investor and trader to choose the product that matches their risk appetite and outlook.

The usual narrative we hear all the time is that you should be weighted 60% in equities and 40% in fixed income. I believe it is a personal choice dependent on many factors, as every person’s situation is unique. Ultimately, as investors, we want capital preservation, but we also have to embrace risk as part of the investing process. Your risk appetite and your goals, as well as many other factors, will determine your weighting of equities and fixed income. Diversification amongst sectors is key.

iShares 20 Plus Year Treasury Bond ETF (TLT) Weekly chart

iShares iBoxx Investment Grade Corporate Bond ETF (LQD) Weekly Chart

iShares iBoxx High-Yield Corporate Bond ETF (HYG) Weekly Chart

MARKET UPDATE

S&P 500

Uptrend closing in on targets. Support lies at 5, 525/5,4440. Only a break of these levels would signal that a correction has started.

GOLD

Uptrend in progress. Support lies around $2,400. Initial target is the mid-400s and then onto upside targets around $2,550.

BITCOIN

It is too soon to say that Bitcoin has completed an irregular corrective structure. At the present time, support lies around $58,000/$57,000. If Bitcoin can hold this level, we should see it continue its upside rally.

US DOLLAR

The dollar may be on the verge of starting its journey south. You want to be scaling into Pound Sterling (FXB), Euro (FXE), and Aussie Dollar (FXA). If you trade FOREX and are experienced, look for a good entry point to go long the Euro and Pound Sterling, either by reading the candlesticks or bar chart price action. The charts tell the story.

RECORDING OF JUNE 2024 JACQUIE’S POST ZOOM MEETING

https://www.madhedgefundtrader.com/jacquie-munro-meeting-replay-june-2024/

PSYCHOLOGY CORNER

ACCEPT THE RISK

How many times have you sold your position before the stock hit your stop loss level? If so, why did you place your stop-loss order to begin with?

I could also ask the question; how many times have you sold a position before your TP (Take Profit level)?

Did you think the stock was not acting as you anticipated? Your wise decision to cut the trade often happens right before the market takes off. If this has happened to you, it is one of the most frustrating events that can occur in the market.

Your analysis was correct. In the end, the market gave you what you expected. Why did you second guess it? It seems likely that you were not willing to accept the randomness of the market and the fact you could lose money.

Until you truly learn to accept the risk, you will interpret the noise of the market as a potential threat and will find some way of rationalizing to yourself that you must exit the trade now.

QI CORNER

Tesla originally purchased $1.5 billion worth of #BTC in January 20221, just weeks after this exchange below, and after a few rounds of selling it now holds roughly 10,000 of the original 43,000 bitcoin purchased.

This single formula in the image represents the entire monetary policy of Bitcoin, now and forever. You don’t need to fully understand it to use it. You can easily create a private wallet and buy Bitcoin and receive Bitcoin in exchange for your goods and services. Bitcoin is a vehicle which highlights the flaws in our financial system. What does it mean to you?

MY CORNER

Alex and I played pool quite recently. He beat me 4 games to 0. My only consolation was the games were close. (I will have to keep practicing).

SOMETHING TO THINK ABOUT

GOOD VIBES CORNER

Have a great week.

Cheers,

Jacquie

July 12, 2024

Jacque's Post

(SUMMARY OF JOHN’S JULY 10, 2024, WEBINAR)

July 12, 2024

Hello everyone.

TOPIC

Back from Alaska

PERFORMANCE

July MTD +0.00%

Average Annualized Return: +51.53% for 16 years.

Trailing one Year Return: +34.63%

PORTFOLIO REVIEW

No Positions

THE METHOD TO MY MADNESS

The cool June Nonfarm Payroll Report was a game changer, and the three–year Unemployment rate high at 4.1% was even more important.

The first interest rate cut in five years in September is now a certainty, according to John. July 30-31 Fed meeting will tell all.

All interest rate sectors catch huge bids.

Technology stocks remain hot as bad news is good and good news is even better.

Gold and Silver catch bids on rate cut prospects.

Energy gets dumped on recession fears if the Fed acts too slowly.

Buy stocks and bonds on dips.

THE GLOBAL ECONOMY – FADING

Nonfarm Payroll Report comes in weak for June at 206,000.

The Headline Unemployment rate rose to a three-year high at 4.1%.

If the Fed doesn’t cut soon, we are going into recession.

Trade War between China and the E.U. heating up. China will investigate European brandy imports after the E.U. slapped tariffs on Chinese-trade electric vehicles.

US Venture Capitalists flood into AI Investments. U.S. venture capital funding surged to $55.6 billion in the second quarter, marking the highest quarterly total in two years.

The core personal consumption expenditures price index increased just a seasonally adjusted 0.1% for the month and was up 2.6% from a year ago.

STOCKS – RATE CUTS

All interest rates plays rocketed as a September interest rate came back on the table.

Bank of America said U.S. large-cap equities – the largest companies in the American market – received their biggest inflow in 16 weeks at $16.6 billion.

Saks Fifth Avenue buys Nieman Marcus for $2.65 billion, as consolidation of retail continues.

Walgreens shares crushed 25% on poor outlook

Micron shares plummet on weak earnings.

Fisker, the next Tesla just went bankrupt. It’s the second EV maker to go under this year, following the ill-fated Lords Town Motors.

BONDS – SIGNS OF LIFE

Cool Nonfarm payroll report sends bonds soaring, confirming earlier rallies based on weak economic data.

Bonds see the biggest cash inflows since 2021, some $19 billion, as investors position for interest rate cuts.

Funds are pouring into Corporate Bonds at four-year highs.

Bonds are becoming respectable again after an extra-long winter.

U.S. Budget Deficit jumps from $1.6 to $1.9 trillion for fiscal 2024, the Congressional Budget Office said on Tuesday, citing increased spending for a 27% increase over its previous forecast.

Do you want a safe 8.48% yield?

BB bank loans will soar in value with even just one quarter-point rate cut. The top ticker symbols are (SLRN), (BRLN), (BKLN), and (FFRHX). Check them out.

Buy (TLT), (JNK), (NLY), and REITS on dips.

FOREIGN CURRENCIES – DOLLAR IS TOAST

Cool hot May Nonfarm Payroll Report gives dollar spikes currencies except yen.

The U.K.’s opposition Labour Party secured a massive parliamentary majority in the country’s general election, demolishing the Conservative Party.

The Bank of Japan debated in June the chance of a near-term interest rate hike.

Inflation has crushed Japanese purchasing power, but the debt levels are so high that institutions fear raising rates could bring on even more problems.

Buy all short dollar, long currency plays on dips.

ENERGY & COMMODITIES – DOWNTREND

Energy has been the worst-performing asset class of 2024.

Energy stocks have been worse, underperforming crude.

Gasoline demand has been in long-term secular demand since 2019.

Replacement by EV’s and a shift out of cars into planes are big factors.

Hurricane seasons bringing a short-term pop in prices which John says you should sell.

Buffet buy Occidental for 9 straight days – betting that global economic recovery takes Texas tea back to $100. It’s the cheapest oil company out there. Buy (OXY) on dips.

A Trump presidential win will cause all energy plays to rocket as environmental regulations are rolled back and subsidies renewed, and federal lands opened to new drilling.

PRECIOUS METALS

The gold rush will continue throughout 2024, as much of Asia is still accumulating the yellow metal.

Asia lacks the stock markets we here in the U.S. enjoy.

A global monetary easing is at hand.

Cool May Nonfarm Payroll Report boosts the gold trade.

Buy precious metals on the dip because rates must fall eventually.

Miners are expanding their operations and ramping up production as prices for the precious metal climb to decade highs.

Buy (GLD), (SLV), and (WPM) on dips.

REAL ESTATE – FOREVER BID

Record prices but scarce sales volume.

U.S. housing is unaffordable but aggregate demand continues to push prices higher.

U.S. home sales fall, down 1.7% month-over-month in May on a seasonally adjusted basis and dropped 2.9% from a year earlier. Median home sale price rose to a record high of $439,716, up 1.6% month-over-month and 5.1% year-over-year.

The median price of an existing home sold in May was $419,300, up 5.8% year-over-year.

Rents are up 27% since 2020.

Bankrupt Forever 21 is asking some landlords for rent concessions as high as 50% as liquidity pressures commercial real estate.

Beachfront Property Prices are Washing out to Sea, with dramatic price drops visible on all three coasts.

Prices are further eroding thanks to the complete disappearance of the home insurance policies, forcing buyers to pay all cash.

TRADE SHEET

STOCKS – buy any dips.

BONDS – buy dips.

COMMODITIES – buy dips.

CURRENCIES – sell dollar rallies, buy currencies.

PRECIOUS METALS – buy dips.

ENERGY – buy dips.

VOLATILITY – buy $12

REAL ESTATE – buy dips

NEXT STRATEGY WEBINAR

12:00 EST Wednesday, July 24 from Zermatt, Switzerland

=========================================================================

UPDATE

Data has shown a slowing economy, and as a result rate cuts are well and truly back on the table.

If you look back at a Post I wrote on March 18, 2024, entitled, Slowing Economic Data May Shift the Fed into Reactionary Mode, this appears to be what is certain to happen.

Except, I anticipated rate cuts to happen toward the end of the year. Now, we could get one in September with others to follow before the year's end.

No rate cuts in the U.S. would see the country barrelling toward a deep recession.

A broader market rally should happen in the second half of the year.

Investors jumping out of tech into other sectors, such as Energy, and Healthcare, and REITS does not mean that tech is dead. It just means it’s resting. Please do not sell your big tech holdings. They are a long-term hold. (If you sell now, will you be able to enter at the same price you originally bought?) Timing the markets is a fool’s errand; sit with the market movements as it is the institutions that scoop up the retail investors’ holdings that sell out for short-term gains).

Cheers

Jacquie

July 10, 2024

Jacque's Post

(AVOID THESE INVESTING MISTAKES)

July 10, 2024

Hello everyone,

We all make mistakes, right?

But if you can avoid making very painful mistakes, you can save yourselves a lot of time and money.

So, let’s look at the most common ones to avoid.

Buying overlapping ETFs

Many people like to buy a basket of stocks, which are nicely packed into an exchange-traded fund (ETF). That’s all well and good, but what happens is sometimes investors buy several ETFs without checking which stocks are held in each one. The result can often be you are buying overlapping ETFs, which have a higher allocation to a particular region or industry than you originally thought. Your vision for the long term should be a diversified portfolio, not a concentrated focus in one area.

Buying what you don’t understand

Investing in things that are beyond your understanding can be like stepping into a minefield.

If you cannot understand the asset, you will find it difficult to consider the risks, and possible returns, how to mitigate these, and whether they fit into your investing plan.

You will be vulnerable to scams. Sharks are always lurking in the investment world. They have malicious intent and show no empathy for their potential victims. A lack of understanding of any investment will make you easy fodder for dark knights who are marketing their too-good-to-be-true schemes.

Investing decisions should not be ruled by your emotions. Ask yourself - Why are you investing? Are the expected returns reasonable? Am I being rushed to decide? Step back and take time to consider your choices and make sure they are based on a solid understanding.

All we like sheep – don’t be caught up in panic selling. Understand why you are investing, so you won’t be influenced by the crowd.

Not rebalancing your portfolio

Leaving a portfolio to its own devices can be a mistake. Over time you will find there are assets that no longer align with your intended investment strategy, risk tolerance, and financial goals.

It can result in a portfolio overweighted to an industry that is doing well in the short term, but that may not serve you in the longer term.

Rebalancing your portfolio will bring it back on track to your desired target allocation. Typically, this is done by buying and selling assets within the portfolio.

Of course, it must be remembered, that transaction costs (brokerage fees) and CGT (capital gains tax) implications will apply when you rebalance.

Having unrealistic expectations

Unrealistic expectations can come from a lack of understanding, overconfidence, or being influenced by stories from friends, family, or social media.

Expecting high returns in the short term is unrealistic.

An assumption is that there will only be positive returns. Underestimating risk and the possibility of a downturn can see many people unprepared for it.

Overconfidence. Many believe they can time the market and pick the perfect stocks at the perfect time. Even professionals are burnt by this notion.

Investing is for the long term. It’s not a get-rich-quick scheme. People who want to invest in the market must understand the realistic returns and must be able to sit comfortably with the volatility in the market. Your risk tolerance and appetite to stomach volatility will certainly influence your decisions when choosing your allocation of assets.

Not talking about money

Does it really need to be pointed out that the more you discuss money and financial tools, instruments, and investments, the more educated you become? It should be a compulsory subject in school, and financial institutions should do more to educate the public. (It was only after the 1987 crash that stock market investing and the financial industry started to become more transparent. My family was invested in the stock market at this time and didn’t sell despite the panic. I was also invested in a gold fund, which I have held).

Not understanding the tax implications of selling

We are all familiar with the saying “buy low and sell high”. But are we all familiar with the tax implications of selling out at the highs? Although you receive a 50% capital gains discount on shares held longer than 12 months, there is still planning that needs to be done around when you sell and how that will affect your taxes.

Returns earned from selling shares will be included in your taxable income, which may affect the tax bracket you’re in or any subsidy you might be receiving from the government (such as paid parental leave or childcare subsidies). Any profit or losses from options must also be reported in your tax statement.

It can be prudent to look at what structures you have in place. Do you have a retirement account, a superannuation, a trust? All of these can be used to minimize tax.

Not starting to invest because you think it’s too hard and complicated

Every day you are not invested is an opportunity lost. Time is something you cannot get back. Take small steps and stop procrastinating.

QI CORNER

Queensland researchers unlock secrets of aging in massive breakthroughs paving the way to extending the quality of life and to reduce the impacts of serious diseases.

https://apple.news/A4jRS4ZMSRReey47UXWKMag

Implantable LED device uses light to treat deep-seated cancers

https://apple.news/A3p1IvS9_T3eOM0KEbAQB7w

Something to think about…

Cheers,

Jacquie

July 8, 2024

Jacque's Post

(INFLATION DATA WILL GUIDE MARKET ACTION THIS WEEK)

July 8, 2024

Hello everyone,

Week ahead calendar

Monday, July 8

3:00 p.m. Consumer Credit (May)

8:30 p.m. Australia Consumer Confidence change

Previous: 1.7%

Tuesday, July 9

6:00 a.m. NFIB Small Business Index (June)

9:30 p.m. China Inflation Rate

Previous: 0.3%

Forecast: 0.4%

Wednesday, July 10

10:00 a.m. Wholesale Inventories final (May)

10:00 a.m. US Fed Powell Speech

Thursday, July 11

8:30 a.m. Consumer Price Index (June)

Previous: 3.3%

Forecast: 3.1%

8:30 a.m. Initial Claims (07/06)

2:00 p.m. Treasury Budget (June)

Earnings: Delta Airlines, PepsiCo, Conagra.

Friday, July 12

8:30 a.m. Producer Price Index (June)

10 a.m. Michigan Sentiment preliminary (July)

Earnings: Citigroup, Wells Fargo, JPMorgan Chase, Fastenal, Bank of New York Mellon

This week we see US data releases, such as CPI inflation, alongside a speech from Fed Chair Powell. Following last week’s June employment report – which revealed the highest unemployment rate since 2021 – the US dollar weakened against several major currencies. Will this weakness continue?

If the CPI and PPI due out Thursday and Friday, respectively, continue to show easing pricing pressures, this cooling trend may be the data the central bank locks in to start to ease up on monetary policy.

And that would certainly be a bullish development for investors who are on edge about the stock market rally and its ability to power on. A CPI under 3% would be a real risk-on moment for the markets.

Noise abounds on the airwaves at the present time. With the S&P500 at all-time highs, many are questioning how long the run can last and are constantly speculating on the timing of a giant retracement. Should we take profits? Should we diversify into other sectors? Will the mega-caps stand their ground and steadily move ahead?

What you do going forward all depends on your philosophy towards trading and investing. If you are long-term focused, hold. If you are short to medium-term focused, you can pyramid out of some of your holdings. In other words, take some profits off the top, but let the remaining stock run. By doing so you have your seed capital returned. You can also purchase protection (insurance) against a large downside move by buying puts, although here you must consider the value of the option is quickly wiped away as time marches on.

I trade alongside investing for the long term, so I am always pocketing income, while my portfolio continues to grow. Expect pullbacks in the market. It’s part of being an investor in the market.

PSYCHOLOGY CORNER

How to avoid emotional trading

Understand your emotions and control them.

To achieve this, a trader must:

1/ Have a solid trading plan

Every trader should have a clearly defined plan – which system you will use – fundamental analysis, technical analysis, or a mixture of both, its advantages and disadvantages, how you will identify trades, and how you will manage them.

Keep a trading journal on your desk, where you can write down your observations, identify your weaknesses, and build on your strengths which can help you avoid common trading mistakes and put you on the path to becoming a profitable trader. Constantly shifting from strategy to strategy will not do any good and will eventually lead to emotional trading taking over.

2/ Understand your risk appetite

When you are first starting out, it is wise to be conservative in your trading. Of course, every trader is different, so you need to identify your risk tolerance or risk appetite and plan accordingly.

3/ Know when to take a break

You should not trade if you are feeling stressed and exhausted. If you have had a string of consecutive losing trades, stop and take a break until you have reviewed and understood what happened.

External factors can also have a negative impact on your mental state. When these events occur, it is sometimes better to take a break and work through the situation before you return to your trading.

QI CORNER

Green roofs at car parks in Japan provide crucial habitats for bees and other pollinators, essential for biodiversity…

MARKET UPDATE

S&P500 – there is still no sign of upside exhaustion yet. Support lies around the 5,400’s. From an Elliott Wave perspective, the S&P500 is still interpreted as progressing within a bullish 5^th wave. Target is around the 5,700’s.

Gold- uptrend in progress. Further upside is anticipated. Support lies at around $2,350. Upside targets include $2,530.00. Be conscious of the possibility of a pullback to the $2,270-250 level before gold commits to a firm rally ahead.

Bitcoin- we have seen weakness in Bitcoin which was not unexpected on the back of Mt. Gox beginning to pay creditors. Mt. Gox went into bankruptcy after a hack that saw members’ Bitcoin stolen. Support lies around $50,000. Expect some messy price action before a well-defined bullish move.

Cheers,

Jacquie

July 5, 2024

Jacque's Post

(AUSTRALIA DOES DEAL WITH AMAZON TO MOVE TOP-SECRET INTELLIGENCE TO THE CLOUD)

July 5, 2024

Hello everyone,

Hope you all had a great July 4th.

We have the Jobs Report today. Slowing payroll gains are expected.

Data is showing a slowing economy. It takes some time before the high interest rates are felt throughout the economy. Talk of interest rate cuts is now back on the table in the second half of the year. The earliest possible time is probably September.

By the end of this decade, a “top-secret” cloud service will be built for Australia’s intelligence agencies to share information with one another, as part of a $2bn deal with US technology giant Amazon.

The investment is expected to generate about 2,000 jobs and ensure Australia “maintains” pace with the world’s leading defense forces while it increases its interoperability with US agencies.

Three data centers will be built in Australia to house the country’s most secretive and valuable intelligence, the locations of which will remain secret.

The Australian Signals Directorate’s director general, Rachel Noble, said partnering with a private company meant intelligence agencies would have access to “the best staff the private sector has to offer in terms of technology capabilities, services, and tools”.

The developments in artificial technology will be able to help collect and sift through massive amounts of data. The cloud would also support the country’s “Redspice” intelligence program, which aims to counter the growing risk of cyber-attacks.

Noble also argues that “modern defense forces and …modern conflict is more reliant upon information technology, upon computing infrastructure than ever before.”

PORTFOLIO UPDATE

If you own any of the following, I suggest you:

Exit out of:

Ovid Therapeutics (OVID) $0.7517

Biomea Fusion (BMEA) $4.35

Rocket Pharmaceuticals (RCKT) $20.03

Big Pharma is dominating at the present time.

Take some profits on

CrowdStrike (CRWD) $387.18 as at close 07/03/24

I recommended (CRWD) on January 6 this year when the stock was trading at $280.

Long term this is a great stock.

In the short term, you may want to pyramid out a % of your holdings.

Lock in some profits.

You could consider between 5%-20%.

NEWS UPDATES

UK Elections - a landslide victory to the Labour Party. Keir Starmer is the new leader of Britain.

QI CORNER

The UK is expected to lose 9,500 millionaires this year, only second to China with 15,200. This is an interesting and telling reversal in fortune, since historically, the UK has drawn wealth from Europe, Africa, Asia, and the Middle East. If this trend continues over the next two decades, what could be the long-term consequences?

Cheers,

Jacquie