The puppet master is back and the BoE is worried
Oct 14, 2021Good morning!
The markets want to make a run after better-than-expected earnings from BofA, Wells Fargo, Citigroup, and Morgan Stanley. Good – that speaks volumes about how money’s moving, something we’ve been talking about for a while now.
Speaking of which …
Here’s my playbook.
1 – Stuff that’s getting the most expensive fastest
The Labor Department reported Wednesday that inflationary pressures are running 5.4% YoY; the fastest since January 1991. The White House doesn’t think Americans are comparing things that cost more this year than last but they’re sadly mistaken and the government’s own data shows it. Rental cars … up 42%. Gasoline up 42.1%. Meat, poultry, and eggs … up 10.5%. Arrrgggh!
The Fed calls it transitory but that’s just not true.
Higher prices will be here until at least 2022 but probably 2023.
2 – Social security benefits to jump by most in 40 years
Have no fear, Uncle is on the case. The Social Security COLA – cost of living adjustment - increase will be 5.9% versus just 1.3% in 2021. Sounds great but it’s still a losing bet and any American living on a budget is getting hammered … unless of course you know somebody who doesn’t live anywhere, who doesn’t eat, doesn’t need medicine and requires no energy to live.
3 – Companies will raise prices or go bankrupt
Fortunately, there IS a way to beat all this. Invest in companies with strong CEOs, margin protection, pricing power, global demand and a decidedly tech-focused orientation.
Can’t figure out which ones to buy?
Keep it simple.
People will change the way they buy everything from medicine to hot dogs, but I have not heard one person yet say they’re giving up their iPhone.
4 – Facebook’s thought police are turning on their own
A leaked memo suggests that Facebook is limiting employee access to some internal discussion groups. So much for “open” communication and so much for whistleblower Frances Haugen being off based.
$200 a share?
Not hard to imagine as people lose any semblance of what remaining trust they have.
5 – Oh the irony (and yes, Soros factors into this)
The Bank of England is warning that crypto could cause a 2008-level meltdown. Talk about irony … Soros “broke” the Bank of England in 1992 and made more than $1 billion in a day.
Could the notoriously stiff-upper-lipped Fleet Street set be worried he’s in the game again?
I’ll bet ’cha dimes to dollars or at least Bitcoins to Pound Sterling that the answer is yes.
The BOE’s deputy governor for financial stability, Jon Cunliffe worries whether major price corrections can be absorbed by the system if crypto assets continue to grow at scale and become more integrated into the traditional financial sector.
I’ll be buying more crypto … the game is on. And yes, Soros IS playing along as I noted in last Thursday’s 5 with Fitz when I suggested the “puppet master” is back. (read)
Yesterday’s most read … A Nation of Quitters. I hadn’t had enough coffee evidently and typed 5634 at 0430 in the morning when I drafted yesterday’s missive. The correct figure was 534K … as in 534,000 healthcare workers walked out of their jobs voluntarily. (read)
Bottom Line
Capitalize on chaos or it will capitalize on you.
Now get out there and MAKE it a great day!
I’m with you every step of the way.
You got this – I promise!
Keith
PS: Attention OBAers … the text trading alerts service you’ve been asking for (and I’m developing at your request) will launch next week! Get ready … it’s a target rich environment!
