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Mad Hedge Fund Trader

April 10, 2023

Jacque's Post

 

Artificial Intelligence is in our present and future

 

Monday, April 10, 2023

Hello everyone,

Easter has been and gone for another year and another week of the markets is upon us. What will it be this week – bullish, bearish, sideways, good news is bad news, bad news is good news or news is just news??

Maybe we just need to turn to our A.I device to find out. Is that the future?

 

So, what is A.I.?

In its broadest sense, A.I. is the capability of machines to simulate human intelligence – to think and act the way that humans do. But we all know that human intelligence incorporates much more than just thinking and acting. Learning is a big part of it. Therefore, for any artificial intelligence to be considered “true” AI, it also needs to be able to learn. After that, it needs to apply what it has learned (by generalizing the knowledge) to solve new problems. After all, humans learn from experience to make better decisions.

 

 

Types of AI

Artificial Intelligence is usually grouped into the following two broad categories:

 

AI Applications or “Narrow” AI

AI Applications are capable of simulating human intelligence in a limited capacity. They can learn or be taught how to perform several specific tasks as efficiently as possible. In fact, it excels when it’s performing a single task, despite being heavily constrained.

AI applications are what we use every day. One of the biggest examples is personal data assistants like Siri and Alexa. These systems are capable of speech recognition and processing of natural language to determine what task you need them to perform.

Artificial General Intelligence (AGI) or “Full” AI

AGI is the type of AI that computer scientists dream of creating. It can simulate human intelligence in the truest sense with the ability to adapt to a multitude of scenarios and solve almost any problems that it encounters. This AI can drive a car, go shopping, balance an accounting book or even fly an airplane.

Currently, this type of AI is rooted in fiction. A good example of AGI would be Data from Star Trek, HAL from 2001: A Space Odyssey and JARVIS from Iron Man. AI analysts believe we are decades away from achieving this level of AI.

If we manage to create AGI, it is predicted that this will give rise to “superintelligence”. This is the type of AI that will surpass human intelligence on every imaginable level, including on the creative and emotional level. One of the downsides of superintelligence is that it will eventually start believing it is better than humans and may try to dominate us. We’ll leave that to future generations to sort out.

 

 

Why Artificial Intelligence is Important

AI has a lot of benefits, and these extend to virtually every industry.

A few are listed here:

 

Making Existing Products More Intelligent

AI is not a standalone product; it is integrated into existing products to make them more intelligent. One area where this is taking off today is the internet of Things (IoT). This is a network of interconnected smart devices that constantly communicate to anticipate human needs with little human intervention.

For example, when driving home, your phone will communicate to your garage that it’s in range so that it opens when you arrive. At the same time, the phone will set the thermostat to a comfortable temperature depending on the weather report it “checked” on the internet. Also, once the phone senses you’re inside your home, it’ll turn on your favourite relaxation music or the TV so you can watch the news.

As AI improves IoT will become better at anticipating your needs to the point human intervention will be completely unnecessary.

 

 

Automating Repetitive Tasks

Humans can only perform a task for so long before it becomes boring due to repetition. Boredom doesn’t register in machines. They can deal with the mundane, while humans focus on more high-level tasks that machines can’t do, yet.

So, get your AI to check documents for errors, bill multiple clients for completed projects, send customer onboarding emails, while you plan your next vacation.

 

Speeding Up Decision Making

Humans can only process so much information at a given time. Stress and tiredness are among the many factors that play a role in our ability to make decisions on time. AI is free from all this reduce and only focuses on what it is programmed to do.

Reduce Human Error

What makes us human affects our decision-making processes and causes us to make mistakes. A well programmed machine will not make mistakes.
For instance, the use of predictive AI has helped reduce human error in forecasting the weather. Businesses and brands have used the same AI to help them identify customers who are most likely to buy them.

 

Always Available

It’s obvious, isn’t it? Machines don’t need rest. Whether it is lunchtime or 2AM Alexa will always be available to process your queries. It’s also why businesses use chatbots to help customers after business hours.

 

 

OK, so, this may sound great, but how do we profit from all these advances in technology?

There is one tech fund capitalizing on the artificial intelligence boom – and beating 90% of its peers this year.

Adam Benjamin, manager of the $9.5 billion Fidelity Select Technology Fund (FSPTX) believes that A.I. is probably the largest technology theme, driver, and disrupter in the next 10+ years.

 

 

The mutual fund is up 22% in 2023, outperforming the Nasdaq Composite, which has risen 15%. It also has a solid long-term track record, racking up a 15.7% annualized return over the past 15 years that puts it in the 10th percentile, according to Morningstar.

Companies that rushed to embrace digital transformation during the pandemic continue to seek ways to improve efficiency through large language models like ChatGPT enabled by A.I., Benjamin said. He goes on to say that the biggest facilitator in the industry is no doubt, Nvidia.

Benjamin says that Nvidia is the single largest beneficiary by a wide stretch in terms of A.I. The chip stock is the Fidelity fund’s third largest holding with a more than 8% weighting.

Nvidia shares have rocketed 84% this year, boosted by their biggest quarterly gain since 2001. Benjamin says Investors grew bullish on Nvidia’s A.I. vision, while also viewing the inventor of the graphics processing unit as one of the chip manufacturers best positioned to endure an economic slowdown that’s already hurting personal computer and wider semiconductor sales.

Other semiconductor names among Fidelity Select Tech’s top holdings include Marvell Technology, NXP Semiconductors, ON Semiconductor, and GlobalFoundries.

 

The fund is rated four stars by Morningstar.

A.I. is all around us and improving all the time. Use it wisely.

Have a wonderful week. Don’t forget to do something that doesn’t involve A.I. 

Cheers,

Jacque

 

 

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Mad Hedge Fund Trader

April 7, 2023

Jacque's Post

 

The housing crisis in your future brought to you by climate change.

 

April 7, 2023

Hello everyone,

Most of us know about the changing climate. But few of us realize the implications of these changes on housing over the next 30 years and beyond.

We know about interest rates and the cost of housing, but what about the relationship between climate and the cost of housing.

 

 

It’s another crisis, which is going to spread its tentacles worldwide. No country will escape.

Dave Burt, CEO of investment research firm DeltaTerra Capital believes an overlooked and unpriced climate risk could see a repeat of a financial crisis in housing, albeit on a smaller scale in relation to the 2008 crisis. But still, it’s a damaging real threat to exposed communities.

Dave Burt was one of the few skeptics who recognized the housing market was on the brink of collapse in 2007. He helped two of the protagonist of Michael Lewis’ bestselling book “The Big Short” bet against the mortgage market in the lead-up to the 2008 global financial crisis. As it turned out, they were right and were estimated to have made millions.

Now here in 2023, Burt believes an overlooked climate risk could see history repeating itself.
Burt argues that DeltaTerra Capital’s research suggests that 20% of U.S. homes have “meaningful exposure” to a mispricing issue because of flood risk. If realized, he warned the fallout could resemble the extraordinary correction seen during the global financial crisis.

Even though he says that it could be a quarter the size and magnitude of the GFC, it still would be very damaging to exposed communities. Burt argues that there are cracks starting to appear in terms of the cost of insurance. Think about Hurricane Ian in Florida, for instance. The recovery here was an issue, particularly because this storm surge exposed a flood insurance nightmare for homeowners. We can also think about the people in Lismore, in Australia, where the residents have endured about three major floods in 18 months. Some residents have left, never to return. Others have offered their house to the market for around 200k. The only way people will be able to live in these areas again is if the houses are built on stilts, or if the community is relocated or if major feats of engineering are undertaken to protect the town.

 

 

I would argue that most people do not lose a lot of sleep over the climate crisis in relation to their portfolio. But a recent study has warned the U.S. housing market could be overvalued by around $200 billion due to unpriced flood risks.

This analysis was published in mid-February in the journal Nature Climate Change. Authored by researchers from the Environmental Defence Fund, the First Street Foundation, and the U.S. Federal Reserve, among others, the study modeled property-level changes in flood risk across the U.S. over the next three decades and warned that low-income households were particularly vulnerable to home value devaluation.

 

 

Jeremy Porter, head of climate implications at the First Street Foundation said it is a huge concern because climate risk is not being priced into the housing market. He goes on to say that the costs now or the valuation of homes don’t consider the realization of that actual flood risk, and that’s not taking into account that there seems to be a huge amount of overvaluation attached to properties across the country.

Insufficient climate risk information when purchasing a home poses a significant financial hazard as households could lose a large proportion of their property value overnight.
Eventually, Burt argues, there is going to be some sort of national tipping point where there is some type of bubble that bursts.

Presently, the study said that nearly 15 million U.S. properties face a 1% annual likelihood of flooding, with expected annual damages to residential properties forecast to exceed $32 billion.
In addition, the research also warned the increasing frequency and severity of flooding amid the deepening climate emergency could see the number of U.S. properties exposed to flooding increase by 11% and average annual losses jump by at least 26% by 2050.

The vacuum in climate-related information when purchasing property needs to be addressed. People need to understand what the climate-related costs are going to look like and rethink their property location if they cannot meet those costs.

 

 

Lower-income property owners are most at risk and this, in turn, has the potential to widen the wealth gap in the U.S. and exacerbate inequality.

How will local government tax revenues be affected?

They could be hit quite badly, as the total for municipalities typically relies heavily on property taxes. Having that tied to a physical asset that is exposed to climate change introduces a lot of risk to the stability of that revenue stream according to DeltaTerra Capital research.

This is not just a domestic issue. It is a problem for countries worldwide. And it morphs into a humanitarian crisis when you start looking at the issue through a global lens.

Munich Re, the world’s largest reinsurance company, observed steep economic losses in 2022 as the climate crisis drove more extreme weather events, such as Hurricane Ian in the U.S. and apocalyptic flooding in Pakistan. Reinsurance refers to insurance for insurance companies.

It estimated that these losses amounted to $270 billion last year, of which around $120 billion was covered by insurance. The insured loss total continues a trend of high losses in recent years.
Someone must pay in the end. Whether insured or uninsured, it becomes an increasing economic burden.

 

 

So, before you purchase your next property consider the climate cost also.

A very Happy Easter.

Be safe and enjoy time with family and/or friends.

Cheers,

Jacque

“The world is reaching the tipping point beyond which climate change may become irreversible. If this happens, we risk denying present and future generations the right to a healthy and sustainable planet – the whole of humanity stands to lose.” - Kofi Annan, Former Secretary-General of the UN

 

 

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Mad Hedge Fund Trader

April 5, 2023

Jacque's Post

 

A Few Money

Hello everyone and Happy Easter,

The S&P 500 has rallied nicely. Look for this rally to continue and extend onto the 4270-4325 resistance area over the next few days. Once this resistance area is cleared the bullish rally can extend toward the 4,500-level area.

Gold has had a great move lately. We are on the way to the $2300 area, but it could be a bumpy ride up to this area, so if we get reactions back to the $1890-$1850 area, do NOT SELL. Just add more small positions.

Bitcoin may be in the early stages of another bull market. Around the $35,000 area is an initial target, with much higher targets long term. Bitcoin is not for the faint-hearted. Expect volatility to be part and parcel of being in the crypto sector.

The US$ is having a small rally before another move down. Buy the Euro, Pound, Aussie, and Yen on this pullback.

 

Money Myths

Giving up your daily coffee is a financial game changer.

 

 

Going through your entire life without some small joys seems a bit extreme.  Your budget should have discretionary expenses incorporated.  Be disciplined but not too extreme.  Housing and transportation change outcomes, but not your cup of coffee.

 

You don’t need emergency savings.

Yes, you do. 

This fund should be a safety net, which should only be used during emergencies.  For example, like paying a car payment or mortgage if you’re laid off.

These accounts should not be considered a nest egg or part of a long-term savings plan for a car or a vacation or college tuition.

 

You must monitor the stock market daily.

No, you don’t need to do that.  Unless you are a day trader.

Successful investing is boring.  Make goals, set a plan, build a portfolio, and then focus on something else.  If you micromanage and focus on the movements of the market daily, you may make moves you will later regret.

Wishing you all a great week and a happy and safe Easter.

 

Cheers,

Jacque

 

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Mad Hedge Fund Trader

March 29, 2023

Jacque's Post

 

Apple and Customer Behaviour

 

March 29, 2023

 

 

Hello everyone,

On Tuesday Apple will introduce Apple Pay Later, which will allow users to split their purchases into four payments spread over the course of six weeks. Individuals can apply for Apple Pay Later loans between $50 and $1000 and use them for in-app and online purchases made through merchants that accept Apple Pay. Apple said purchases using the software will be authenticated using Face ID, Touch ID or a passcode. Users will be asked to link a debit card as their loan repayment method. Credit cards won’t be accepted.

 

 

The incentives to spend leave more and more people living paycheck to paycheck.

 

 

So, while 62% of people are waiting for their next pay to fund their weekly shop, more and more people are getting savvy about finding other ways to make ends meet.  The “side hustle” has become a necessary add-on to the traditional “job”, which enables people to live without difficulty.

 

 

But people are also purging useless services. Many families and individuals are getting rid of subscriptions and memberships and premium movie channels that they may never watch. Can you remember all the subscriptions you have?

Do you have funds sitting in your bank account? Transfer them to a high yielding online savings account to earn a better interest rate. Make sure your bank is not charging monthly maintenance or service fees for overdrafts or insufficient funds. Or you can always put more into your brokerage trading account and be ready to pull the trigger on a great trade.

Dialing down on those impulse purchases.
Are you one of those people who go into a shop and see something and say “I just have to have that item”? Or do you walk past a coffee shop and then turn back, purchase a coffee and something to eat? Or do you see something online and think I have always wanted one of those - and then buy it?

 

 

Solution:  unsubscribe from all those retail newsletters and notifications, stop going into shops to browse (anyway, who has time to do that?).  If you really want/need something, go to the nearest charity shop or second-hand warehouse.  You are helping the charity and getting a great deal yourself.

 

 

So, in conclusion today, below are the takeaways to live well and avoid the debt cycle and Pay Later promotions.

 

 

Have a wonderful week.

 

Cheers,

Jacque

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Mad Hedge Fund Trader

March 28, 2023

Jacque's Post

 

Another Look at Rivian

27 March 2023

Hello everyone,

Welcome to a new week.

Hopefully, the drama surrounding regional banks dies down this week and it’s back to looking at the overall market and digesting some facts.

We hear a lot about EVs now and it’s usually all about Tesla.  But let’s consider Rivian for a moment.

This year Rivian’s shares have been hitting all-time lows, dipping below $13 per share at some point during March.  Its shares are down around 25% year to date.  By way of contrast, rival EV maker, Tesla has soared 56% in the same period.  So, what gives?

 

 

Rivian’s underperformance versus its peers comes after a series of developments this year.  Most recently, it said it was in talks with Amazon to adjust an exclusivity clause to produce 100,000 electric trucks for the e-commerce giant.  That came as Amazon was underwhelmed with its order numbers.

Rivian shares also plunged after it said it planned to raise $1.3 billion in cash via a sale of convertible bonds.

To ignite its upward trajectory, Morgan Stanley estimates Rivian could spend nearly $6 billion on both operational and capital expenditure this year – which is 1.5 times its full-year 2023 revenues, the bank forecast.  Morgan Stanley also highlights Rivian’s aggressive growth rate.  Rivian’s spending levels are higher as the company is targeting a much steeper growth rate compared to Tesla’s trajectory in 2015. 

 

 

Morgan Stanley is giving the stock an overweight rating, and a price target of $26.00 – or nearly 90% upside.

Morgan Stanley’s analysts said Rivian was the only EV start-up name it recommends, apart from Tesla which is also rated overweight.

Chief analyst, Adam Jonas, at Morgan Stanley, says that while the stock offers a rather wide risk/reward skew ($5 bear case to $55 bull case) the firm remains compelled by the company’s differentiated product, scalable end markets, cost-cutting potential, cash balance, and valuation.

Looks like Rivian is a good buy, although the shares may take time to rally.  Be patient.

 

 

“Trust is the coin of the realm. When trust was in the room, whatever room that was – the family room, the schoolroom, the locker room, the office room, the government room or the military room – good things happened,” said my late friend, US Treasury Secretary George Schultz.

 

John Thomas and George Schultz

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Mad Hedge Fund Trader

March 23, 2023

Jacque's Post

 

SUMMARY OF MARCH 22, 2023 WEBINAR

 

Hello everyone,

John has just completed his webinar, so I thought I would provide a summary of the main points for you.

 

Title: Banking Crisis

During the Great Depression, 9,000 banks failed. $7 billion was lost.

Dodd Frank has required banks with over $250 billion to be massively over-capitalized.

Top 20 banks could handle double the 2008 number of defaults.

 

 

Treasury has proven aggressive in putting out fires quickly.

The goal is to protect all depositors.

Now no management walks away with $100 million in bonuses after 2008.

John is 80% long, 20% short, and 0% cash.

VIX is at 30 – this is where you want to be fully invested.

Volatility has nearly doubled in the last two weeks.

It is certain that the Fed will prioritize saving the financial system over fighting inflation today. Yes – Fed has just delivered a .25% rate hike.

There has been a flight to safety – yields are back to the bottom of the range.

Energy is pushing to new lows on new recession fears.

Gold, Silver upside breakout on lower interest rates sooner.

U.S.$ gets a small pop off a one-year low as interest rates stay higher for longer.

Look for S&P 500 at $4,800 by the end of 2023.

VIX rockets to $31 – Everything is now tradeable.

 

Global Economy – Recession Fears

Fed spends $297 billion to bail out the financial system.

 

 

Europe raises interest rates by 50 basis points.

Core inflation at 6.0% YOY rate.

Swiss National Bank bails out Credit Suisse, which has taken pressure off the US market.

PPI down to 0.1%

Non-Farm Report – hot at 311,000.

Unemployment rate rose from 3.5 – 3.6% - a 53-year low.

 

Stocks – Crisis

Banks deliver the biggest sell-off in a decade.

 

 

Many customers flooded out of small banks to jump into the big banks on the coasts.

JPM has been turning down new applications.

First Republic (FRH) and Fifth Third (FITB) take the biggest hit – but even big safe banks are down 20%.

Microsoft adds AI to Word and Excel. AI Co-pilot for Microsoft 365. No doubt we will pay more next year for our renewal.

Meta lays off 10,000 workers.

It’s a great time to do LEAPS – on the banks.

Suggestions: JPM 135/130 March 2024 LEAP

LEAPS could also be done on Morgan Stanley and Goldman Sachs.

Rivian is a long-term hold. Two years LEAPS are possible here.

Suggestion: March 2025, 22/20, LEAP

Freeport McMoran (FCX) LEAP suggestion: March 2024, 36/33, LEAP

LEAPS are possible on all the following: MS, JPM, Citigroup, and Schwab.

Berkshire Hathaway is a great buy and a LEAP opportunity.

 

Bonds – Flight to Safety

Bank crisis brings a record peak in bond prices, drop in yields, which may accelerate Fed interest rate-cutting policies.

 

WHAT TO KNOW:

Big hedge funds trade indexes down and buy individual stocks on the way up.

10-year yields plunge 3.90% to 3.30%.

Crash of TLT from 180 to 92 over 2 1/2 years brought bankruptcy of Silicon Valley Bank.

Looking for 2.50% yield by the end of 2023.

TLT should reach $120 in 2023. Keep buying TLT calls, call spreads, and LEAPS. Junk bond ETFs (JNK & HYG) great high-yield plays.

Currencies

U.S.$ peaking.

Buy AUD, Pound, Euro, and Yen on dips.

Precious Metals

Gold breaks out.

Flight to safety bid kicks in.

The world’s second largest producer of Platinum is Russia, who’s supplies have been cut off.

(Buy GLD, GDX, GOLD, SLV, PPLT, WPM on dips.)

 

Wishing you all a great day.

Cheers,

Jacque

 

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Mad Hedge Fund Trader

March 21, 2023

Jacque's Post

 

Fed Action Dominates the Week
March 18th, 2023

Hello everyone,

How have you dealt with the volatility in the market over the past week?

Have you been frozen to the spot, did you sell bank shares, did you buy the big banks as John told you to, or did you turn everything off and put headphones on to just zone out?

 

 

Poor management doomed Silicon Valley Bank and created a new banking crisis. 
Taxpayers nervously await the cost of the bailout.

 

Banks were not the only sector on sale.  The Technology sector has been really good value of late as well.  But some investors are just too distracted by the ongoing turmoil to see that there are plenty of quality buying opportunities.

Take Apple, for instance.  There is the reaccelerating iPhone and Services growth, record gross margins, two new product launches, and the potential introduction of an iPhone subscription program.  While the present macro backdrop looks rough, patient investors will be rewarded.  Apple shares are up almost 20% since the start of the year.

We have the Fed meeting on March 22.  After the recent volatility, the Fed may stand still or raise only .25%.  The comments after the announcement also tell an important story as to what we can expect going forward – dovish or hawkish.

 

 

Mr Trump is expected to be arrested on Tuesday as a New York grand jury investigates his connection with a hush-money payment to a porn star.  If he is indicted, Trump, a 2024 Republican presidential candidate, would become the first former president ever to face criminal charges.

Bitcoin rallies 60% as investors rediscover its appeal as an alternative to the banking system.

 

 

Bitcoin’s outperformance amid a crisis in the traditional banking system had some wondering if the price rallied on a potential narrative shift.  Though Bitcoin was initially designed to be digital cash and an alternative financial system, it spent much of last year trading like a speculative asset. Last week, it even fell with risk markets and bank stocks amid the uncertainty surrounding Silvergate Bank.

That shifted this past week however, following the closures of Silicon Valley Bank and Signature Bank, giving the appearance that investors were trading it on its core value proposition, the ability to “be your own bank.”

Investors will continue to monitor the banking crisis and the regulatory landscape in the week ahead.  Bitcoin’s rally could remain in place if the Fed opts to end its tightening cycle and wait and see what happens next with banking turmoil.  It seems that traders are pricing in rate cuts this summer already, so we will see what happens if the Fed opts to remain focused on inflation and deliver another quarter-point rise.  A pause and Bitcoin could have the potential to make a run towards the $30,000 level.

 

 

Wishing you all a wonderful week.

Cheers,

Jacque

 

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Mad Hedge Fund Trader

March 13, 2023

Jacque's Post

 

The Silicon Valley Bank debacle

March 13th, 2023

Oh no! This is a financial shock the economy just does not need. It only took 48 hours for Silicon Valley to blow up. Financial regulators are discussing two different facilities to manage the fallout from the closure of Silicon Valley Bank if no buyer materializes.

One way that the regulators may step in would be to create a backstop for uninsured deposits at Silicon Valley Bank, using an authority from the Federal Deposit Insurance Act. The move would also touch the systemic risk exception that allows the Fed to take extraordinary action to stem contagion fears.

Silicon Valley Bank sowed the seeds of its own downfall. It was a key player for venture capital-capital backed companies in technology and related industries and this appears to have played a major role in its demise, according to J.P. Morgan Asset Management. Michael Cembalest, chairman of the firm, said in a note to clients over the weekend that SVB’s heavy reliance on corporate deposits, (rather than retail) and a high percentage of assets held in loans and securities made it unusually risky compared with other banks. In other words, SVB carved out a distinct status for itself in riskier assets and this set itself up for large potential capital shortfalls in case of rising interest rates, deposit outflows and forced asset sales.

The chart below shows how unique Silicon Valley really was… it sits in the lower right far away from the other regional banks:

 

The concentrated mix of deposits appears to have contributed to a massive bank run.  There were $42 billion in withdraws initiated last Thursday, according to a regulatory filing.  SVB’s demise was also accelerated since it had to sell longer-dated fixed-income securities at a loss – from where they were held on the balance sheet in order to meet withdrawals.

While SVB was unique, there is some concern about these fears spreading to other regional banks.  So, it should be an interesting day on Monday.

 

Economic Calendar this week

Monday            UK Employment Data          Time: 3.00am ET (Tues) Market: GBP/USD

Tuesday           US Inflation Rate                   Time: 08:30am ET       Market: USD pairs

Wednesday     US Retail Sales                        Time: 08:30am ET       Market: USD pairs

Thursday         Euro Area Interest Rate

                          Decision                                    Time:  09:15am ET      Market: EUR/USD

Friday              Euro Area Inflation Rate       Time: 06:00am ET       Market: EUR/USD

 

The Money Supply

Nick Geril, Founder and CEO of Reventure Consulting has presented a chart that looks a little disturbing.  He has used M2 accounts (all money in your pocket at your immediate disposal and savings accounts, certificates of deposit, and money market funds) and U.S. inflation rate data from the Federal Reserve Bank of St. Louis and the U.S. Census Bureau and has plotted out how the money supply and inflationary/deflationary pressures can sometimes correlate.

The U.S. Money Supply is a leading economic indicator with an extensive track record of success within certain parameters.

 

On that cheery note, I will wish you all an excellent week and much joy.

Take care.

Cheers,

Jacque

 

"There is nothing impossible to him who will try." - Alexander the Great

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Mad Hedge Fund Trader

May 10, 2023

Jacque's Post

 

International Women’s Day

March 8, 2023

Hello everyone,

International Women’s Day has rolled around again. Women across the world use this day to come together to celebrate and rally for equal treatment and representation. It is also a day to celebrate female achievement, to encourage and inspire one another, and to thank the women in our lives for their contribution to society.

The day’s origins date back to 1908, when thousands of women marched through New York City, demanding better working hours and pay. A year later, the Socialist party of America declared a Women’s Day.

While some glass ceilings have been shattered, others remain.

Let’s look at the achievements of women in U.S. history.

March 31, 1776: In a letter to her husband, Founding Father John Adams, future first lady, Abigail Adams makes a plea to him and the Continental Congress to “remember the ladies and be more generous and favourable to them than your ancestors…”

July 19-20, 1848: In the first women’s rights convention organized by women, the Seneca Falls Convention is held in New York, with 300 attendees, including organizers Elizabeth Cady Stanton and Lucretia Mott. Sixty-eight women and 32 men sign the Declaration of Sentiments, which sparked decades of activism, eventually leading to the passage of the 19th Amendment granting women the right to vote.

January 23, 1849: Elizabeth Blackwell becomes the first woman to graduate from medical school and become a doctor in the U.S. Born in Bristol, England, she graduated from Geneva College in New York with the highest grades in her entire class.

Dec 10, 1869: The legislature of the territory of Wyoming passes America’s first woman suffrage law, granting women the right to vote and hold office. In 1890, Wyoming is the 44th state admitted to the Union and becomes the first state to allow women the right to vote.

October 16, 1916: Margaret Sanger opens the first birth control clinic in the United States. Located in Brownsville, Brooklyn, her clinic was deemed illegal under the “Comstock Laws” forbidding birth control, and the clinic was raided on October 26, 1916. She closed the clinic eventually after further threats and eventually founded the American Birth Control League in 1921 – the precursor to today’s Planned Parenthood.

April 2, 1917: Jeanette Rankin of Montana, a longtime activist with the National Woman Suffrage Association, is sworn in as the first woman elected to Congress as a member of the House of Representatives.

August 18, 1920: Ratification of the 19th Amendment to the U.S. Constitution is completed, declaring “the right of citizens of the United States to vote shall not be denied or abridged by the United States or by any State on account of sex.”

May 20-21, 1932: Amelia Earhart becomes the first woman, and second pilot ever to fly solo nonstop across the Atlantic.

December 1, 1955: Black seamstress Rosa Parks refuses to give up her seat to a white man on a bus in Montgomery, Alabama. The move helps launch the civil rights movement.

May 9, 1960: The Food and Drug Administration (FDA) approves the first commercially produced birth control pill in the world, allowing women to control when and if they have children.

June 10, 1963: President John F. Kennedy signs into law the Equal Pay Act, prohibiting sex-based wage discrimination between men and women performing the same job in the same workplace.

July 2, 1964: President Lyndon B. Johnson, signs the Civil Rights Act into law; Title VII bans employment discrimination based on race, religion, national origin, or sex.

June 30, 1966: Betty Friedan, author of 1963’s The Feminine Mystique, helps found the National Organisation for Women (NOW), using grassroots activism to promote feminist ideals, lead societal change, eliminate discrimination, and achieve and protect the equal rights of all women and girls in all aspects of social, political and economic life.

January 22, 1973: In its landmark 7-2 Roe v. Wade decision, the U.S. Supreme Court declares that the Constitution protects a woman’s legal right to an abortion. In June 2022, the Supreme Court overturned the ruling.

July 7, 1981: Sandra Day O’Connor is sworn in by President Ronald Reagan as the first woman to serve on the U.S. Supreme Court. She retires in 2006, after serving for 24 years.

June 18, 1983: Flying on the Space Shuttle Challenger, Sally Ride becomes the first American woman in space.

July 12, 1984: Democratic presidential nominee Walter Mondale names U.S. Rep. Geraldine Ferraro (N.Y) as his running mate, making her the first woman vice presidential nominee by a major party.

March 12, 1993: Nominated by President Bill Clinton, Janet Reno is sworn in as the first female attorney general of the United States.

January 23, 1997: Also nominated by Clinton, Madeleine Albright is sworn in as the nation’s first female secretary of state.

January 4, 2007: U.S. Rep. Nancy Pelosi becomes the first female speaker of the House. In 2019, she reclaims the title, becoming the first lawmaker to hold the office two times in more than 50 years. She stepped down from the leadership role in 2022.

January 24, 2013: The U.S. military removes a ban against women serving in combat positions.

July 26, 2016: Hillary Clinton becomes the first woman to receive a presidential nomination from a major political party.

January 20, 2021: Kamala Harris is sworn in as the first woman and first woman of colour vice president of the United States.

I think we have come a long way, but there is still a long journey ahead.

Challenges are many, and change will be incremental.

Women need to stay the course.

Enjoy your week.

Cheers,

Jacque

 

 

 

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Mad Hedge Fund Trader

March 2, 2023

Jacque's Post

 

Ladies & Gents - Start preparing now for Sadie Hawkins Day.

March 1, 2023

 

Hello everyone,

Today, I am going to delve into the history and meaning behind Sadie Hawkins Day.  If you haven’t heard of it, it will be an interesting bit of trivia to remember and file.   It is usually celebrated on November 13th, but it can be on different days in different states.  Sadie Hawkins Day was created by Al Capp in his cartoon comic strip, “Li’l Abner”. It is set in the fictional mountain village of Dogpatch, Kentucky.   It publicly debuted on November 15, 1937. 

 

 

The story goes that Sadie’s father, Hekzebiah Hawkins, a wealthy and prominent person in Dogpatch, was frantically worried that his homely daughter would be left on the shelf and remain a spinster, so he created Sadie Hawkins Day, where unmarried women could literally chase after the town’s bachelors – ask them out on dates, ask them to dances and ask them to marry them.  The comic strip took on a life of its own, and as often happens, life imitated art. In the late 1930s, on college campuses and in high schools across the U.S., Sadie Hawkins Day dances became an annual tradition.

 

 

SHD in its day was seen as an empowering rite of passage for women.  In the modern age, women confidently assert their right to ask a man they like out on a date.  “Let’s meet up”, is a common texting term across an iPhone screen.  What happened to the old-fashioned tradition of ringing someone up and verbally asking them out on a date?  Is that seen as too aggressive now?  Or is it easy to hide behind a text?   Today, the whole idea of Sadie Hawkins Day is anachronistic and even a bit insulting.  Al Capp asserts that any homely lady would have trouble attracting a mate – I can hear everyone yelling at this opinion and rightly so.  Hence, the comic strip’s controversial nature.

What became of the protagonist, Li’l Abner?   Daisy Mae eventually caught him, after he spent around two decades attempting to escape her clutches.  He finally married her in 1952. 

But there is a darker side to this story.  Al Capp, the man that created the idea was said to be a womanizer, a misogynist, and an accused rapist.  He had a reputation for seducing and sexually assaulting aspiring actresses, including a young Goldie Hawn and Grace Kelly, and sleeping with the college girls he met on his Sadie Hawkins Day tours.  (Does that behaviour remind you of anyone?)

What has all this got to do with the markets, the economy, and finance in general?

Nothing.

Nobody can spend 24 hours every day digesting market gyrations and info.  Everybody needs light relief.

Anyway, you all know what the market is going to do.

In general, and in brief:

S&P -  rally and then fall next year.

Nasdaq - fall, rally, and then fall next year.

Gold - fall, rally, and then fall.

Natural Gas - rally to around $5.00 by August 2023.

Crude - fall, then rally and then fall.

U.S.$ - rally a little, then fall, and then rally.

And let’s not forget interest rates - higher for longer.

To make the most of these moves and get access to detailed trades, sign up for John’s service, and/or sign up for my newsletter, and/or join me and Gloria Hartney as we present The MunroHartneyReport once a fortnight.   First meeting is this Friday at 5:00 pm QLD/6:00 pm VIC/NSW time.  If you do not have a link and would like to join us, please email me.

Many blessings.

Have a great week.

Cheers,

Jacque

 

 

What a great way to see your team – as human beings.

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