Stocks & Equities

Imagine what a “taper tantrum” might look like

Posted by Bill Blain via Blain's Morning Porridge

on Tuesday, 2 June 2020 6:11

If you think you’re a financial genius because you bought the rally on March 23rd (the bottom of the COVID crash, and incidentally, the day UK lockdown was announced), then you either arbitraged how Central Banks and Governments were going to press the MAX POWER button to juice the market through QE Infinity (QEI), bailouts and nationalising payrolls, (in which case, well done), or you were just a lucky idiot who bought into all the nonsense hype about an oversold opportunity.

Do you perhaps think the liquidity Central Bank have pumped into the market might be related to recent stock and bond gains? (Clue: Yes.)

· The Fed’s balance sheet has expanded by over $3 trillion since March. Stock Market capitalisation has increased by …. about the same amount. $2.9 trillion. And bond market investors found another $1 trillion to put into the busiest corporate new issue market of all time because they saw it was backstopped by QEI and rates were going lower. Thank you Fed! Full Story

Big Fat Idea – Time to Add Copper to Your Portfolio?

Posted by MoneyTalks Editor

on Monday, 1 June 2020 10:18

Kodiak Copper CEO Claudia Tornquist joins Mike to talk about the supply and demand situation for copper, it’s importance to the green technology revolution, and where investors can look for good copper assets and companies in the stock market.

Posted by Steve Breen

on Sunday, 31 May 2020 12:29

Steve Breen https://townhall.com/political-cartoons/2020/05/23/173994

Stocks To Watch As Shale Bounces Back

Posted by David Messler

on Friday, 29 May 2020 13:06

There is no question that as the oil price dropped in the first quarter of 2020, producers reacted strongly curtailing new drilling, and actually shutting in existing production. Markets have taken encouragement from this withdrawal of supply and helped prices for WTI (the key U.S. benchmark) to a rally of historic proportions.

As the price of WTI crested $30/bbl concerns began to mount that this would embolden drillers to put a bunch of rigs in the field and resume their ‘merry’ ways, drilling to soak up as much market share as they can.

Drilling and fracking will of course begin to pick up as prices approach $40, but concerns about a new ‘Black-gold rush’ are over-wrought. The capacity to put hundreds of rigs back to work simply no longer exists.

In this article we will take a look at the fundamentals of providing services related to fracking, and why capacity has been permanently withdrawn from the market… CLICK for complete article

The Fed Is Printing Money At Unprecedented Levels

Posted by Frank Holmes

on Friday, 29 May 2020 13:02

“I think there is a strong likelihood we will need another bill.”

That’s according to Treasury Secretary Steven Mnuchin, who supports additional fiscal stimulus to combat the economic impact of the novel coronavirus—within reason.

The secretary’s statement comes after the House passed a record-shattering $3 trillion relief package, though leaders in the Senate have said they will not put it up for a vote. Senate Majority Leader Mitch McConnell has made it clear that the next coronavirus bill “cannot exceed $1 trillion,” according to reporting by Axios.

Even so, the U.S. government’s response is already massive, dwarfing anything that’s come before it.

Across the pond, Britain’s government is likewise spending like crazy. The U.K. budget deficit widened to a record 62.1 billion pounds ($76 billion) in the month of April, equal to the government’s total borrowing in 2019, according to Bloomberg. CLICK for complete article