Sunday morning
November 6, 2022
Hello everyone,
I trust your weekend was a good one.
John’s heading for the start of the week: The Fed Giveth and the Fed Taketh Away.
In other words, welcome to volatility, which will be with us for quite some time.
Another .75% rate hike is on the cards in December.
After that, John thinks we may start to see lower rate hikes, but there are no guarantees here.
Going into the mid-term elections, John is now in a 100% cash position. We also have the Consumer Price Index on Thursday.
A great buying opportunity is setting up in the months ahead.
Financials and Healthcare have been doing well, but technology has lagged.
Technology is for the long term – it may be under the weather for months or years, but it always comes back, as John reminds us, so don’t wipe it completely from your portfolios.
Apple has gone on a hiring freeze. Other names in this sector will follow suit. The winter season in tech will bite workers as the Fed hits the rate rise button.
The Fed is targeting a 2% inflation rate. Listen to the language around the next hike to see if we are closer to lower rate hikes soon.
What’s happening in Twitter Kingdom.
Staff have left or been sacked.
Advertisers have abandoned the social media site.
Conspiracy theories have been front and center on the platform, which creates traffic.
Twitter will launch a new subscription service – Twitter Blue. You will pay $7.99 per month.
Updates are listed as available for users in the U.S., Canada, Australia, the UK, and New Zealand.
Japan spends $42 billion to support the Yen. It didn’t work. The Yen will remain weak so long as interest rates remain near zero.
The Russian economy is shrinking as sanctions continue to take their toll. Convicted criminals are now being called up to fight in the war against Ukraine.
John’s stories from his personal life are always interesting. Here is another.
In 1971, John worked for an LA County Coroner, Thomas Noguchi. He was known as the “coroner to the stars” having famously done autopsies on Marilyn Monroe and Jane Mansfield. John did the night shift and there was free housing at the coroner’s department. The work was not for the faint of heart. In one job John writes about, he and his co-worker were asked to go and pick up a 300-pound man who had died of a heart attack and had been undiscovered in his home for a month. As John describes, they each grabbed an arm and a leg and went to move the person on the count of three. On doing so, however, all limbs were severed from the deceased body. When John asked for gloves for health and safety reasons, he was fired.
What an interesting attitude to workers some companies have!!
Wishing you all a fantastic week.
Cheers,
Jacque
"If you cannot do great things, do small things in a great way, " says Napoleon Hill
