Economic Outlook

Technically Speaking: 4-Risks To The Bullish View

Posted by Lance Roberts

on Tuesday, 29 October 2019 8:58

When I was growing up, my father, probably much like yours, had pearls of wisdom that he would drop along the way. It wasn’t until much later in life that I learned that such knowledge did not come from books but through experience. One of my favorite pieces of “wisdom” was:

“A sure-fire ‘no lose’ proposition is doing exactly the opposite of whatever ‘no lose’ proposition is being proposed.”

Of course, back then, he was mostly giving me “life advice” about not following along with my stupid-ass friends who were always up elbows deep in mischief.

However, that advice also holds true with the financial markets currently. As I have noted over the last couple of weeks (read this and this) the “bulls” certainly seem to regained control of the markets as new highs were reached on Monday. As I stated, between the Fed cutting rates, reigniting “not-QE,” and the President following our script of putting the “trade war” to rest, “what is there NOT to love if you are a bull.”

While we have begun to opportunistically increase our the equity exposures in our portfolios, we are cognizant there are currently several warning signs investors should consider before buying into the “bullish view.”

Here are four to consider….CLICK for complete article

Is The Internet Killing The Planet?

Posted by Alex Kimani

on Tuesday, 29 October 2019 8:47

Beyond the painfully obvious plight of a planet addicted to fossil fuels, climate change has another bogeyman that few–with the possible exception of Keanu Reeves–would be willing to give up.

Yet, it’s responsible for a huge chunk of our global greenhouse gas emissions.

In fact, by 2025, it could be responsible for a staggering 20 percent of global electricity consumption and up to 5.5 percent of all carbon emissions.

And you’re doing it right now.

That bogeyman is the Internet of Things (IoT) and the tsunami of data it must power.

Academics are challenging the notion that we can considerably reduce carbon emissions by increasing efficiency and cutting down on waste.

In fact, they warn that the internet explosion and increasing connectivity via the IoT and smart devices could increase global emissions by 3.5 percent by 2020 and up to 14 percent by 2040.

In an update to a 2016 peer-reviewed study, Swedish researcher Anders Andrae says the ICT industry’s power demand is likely to increase from 200-300 terawatt hours (TWh) of electricity a year in 2017, to 1,200-3,000TWh by 2025…CLICK for complete article

Tesla’s Tipping Point: Breaking Into China

Posted by Jon LeSage

on Monday, 28 October 2019 10:26

Tesla chief Elon Musk believes China be the tipping point that will lead to his company’s global domination of the electric vehicle stage, but it’s become a very tough sell.

China has had close to two-thirds of the booming global EV sales market so far this year — 61.8 percent with 872,000 units sold through September 30. Tesla’s US home market only made for 236,067 EVs sold this year — 16.7 percent of the total.

But the stakes are quite high for this to become a win-win for Musk. Tesla’s new Shanghai plant started selling its first Model 3s on Friday, but the small electric sedans were given a starting price of Rmb 355,800 ($50,320). That’s roughly 3 percent less than the cost of the same model imported from the US with import tariffs sitting at 15 percent…CLICK for complete article

Louis Vuitton Maker Is Looking to Buy Tiffany

Posted by Bloomberg

on Monday, 28 October 2019 10:20

LVMH offered about $14.5 billion in cash for U.S. jeweler Tiffany & Co. in what would be the biggest purchase by the French owner of Louis Vuitton, according to people familiar with the matter.

LVMH’s all-cash bid values Tiffany at about $120 a share, one of the people said. That’s almost 22% more than the closing price of $98.55 on Oct. 25. The luxury group approached Tiffany with a takeover proposal earlier this month, said the people, who asked not to be identified because discussions are private. Tiffany is currently evaluating the bid and there’s no guarantee an agreement will be reached, they said.

Tiffany shares are worth $12 billion after advancing about 22% this year. Paris-based LVMH has risen 49%, giving it a market capitalization of about $215 billion….CLICK for complete article

Canadian Mortgage Growth Improves, But It Was Still A Very Weak September

Posted by BetterDwelling

on Monday, 28 October 2019 8:11

Canadian mortgage credit is growing, but isn’t quite where it should be. Bank of Canada (BoC) numbers show the balance of mortgage debt hit a new high in September. Mortgage credit growth has improved substantially from last year. However, the improvements to growth, still don’t bring it into typical range.

Canadians Owe Over $1.6 Trillion In Mortgage Debt

The balance of outstanding mortgage credit at institutional lenders is chugging higher. The balance hit $1.6 trillion in September, up 0.5% from a month before. This represents an increase of 4.2% from the same month last year. The new balance is a new record high for the segment, and improvement from last year’s rate of growth….CLICK for complete article