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September 2, 2022 | Junk Bond Prices Have Collapsed
Junk bond prices have collapsed, losing more than 15 percent of their value this year. But the push to higher rates by central banks and the possibility of a deep recession point to a much deeper adjustment during 2023. This will create some great opportunities for stock and bond investors. This chart shows how […]
August 26, 2022 | Green Hydrogen is a Great New Opportunity for Newfoundland and Canada
Germany wants Canada to become a world leader in the production of hydrogen. With a visit from a star-studded delegation from Germany, Newfoundland gains credibility as a potential new centre for clean hydrogen. The delegation included German Chancellor Olaf Scholtz, the Economy Minister Robert Habeck as well as the CEOs of Volkswagen, Bayer, Uniper (spin-off […]
August 19, 2022 | Warren Buffett Loses His Magic Touch
The massive conglomerate Berkshire Hathaway, run by the famed investor Warren Buffett, reported a large loss in the second quarter. Berkshire lost money because of accounting rules that require that losses on securities that are held must be recorded in earnings. Has Warren Buffett lost his magic touch? Source: Berkshire Hathaway Warren Buffett is […]
August 12, 2022 | The Official Recession Label Will Come Much Too Late To Be Useful
The probability of recession in the U.S. is high. The popular definition of recession — two consecutive quarters of negative growth — has already occurred. But there is no official declaration of recession, yet. Why the delay in calling a recession? Some people argue that a U.S. recession has started. The test of two consecutive […]
August 5, 2022 | The Official Recession Label Will Come Much Too Late To Be Useful
The probability of recession in the U.S. is high. The popular definition of recession — two consecutive quarters of negative growth — has already occurred. But there is no official declaration of recession, yet. Why the delay in calling a recession? Some people argue that a U.S. recession has started. The test of two consecutive […]
July 29, 2022 | Persistent and Large Rate Hikes by the Fed Signal the End of an Era
This week’s large rate hike by the Federal Reserve means that the era of the Greenspan Put is over. The Fed increased its base rate by 75 basis points this week and hinted that more increases are coming, in spite of widespread worries about a weak stock market and an economy that might be already […]
July 22, 2022 | The Chinese Residential Property Market Crisis Deepens
The Chinese residential property market is in deep crisis. Thousands of apartment buyers have stopped paying their mortgages because they are upset that the unit they bought has not yet been built. Will this crisis affect China’s stability? Starting about a year ago, China’s residential property market was the focus of many articles when a […]
July 15, 2022 | The Bank of Canada Shocks with 100 Basis Points Increase in Rates
The Bank of Canada shocked financial markets with a surprise increase of 100 basis points in the official interest rate. Will this be enough to stop inflation? Here’s an excerpt from the July 13, 2022 announcement: “With the economy clearly in excess demand, inflation high and broadening, and more businesses and consumers expecting high inflation to persist […]
July 8, 2022 | Crude Oil Prices Peaking and Plunging
Crude oil has plunged below $95 this week, from a recent peak of $123 in March 2022. In the past, high prices for crude oil have been associated with recession. Is the price action of crude oil predicting a recession? Crude oil is the most actively traded commodity in the world. Its impact on the […]
July 1, 2022 | New Battery Design for BEVs Could Be a Breakthrough
Battery technology will be key to rapid adoption of battery electric vehicles (BEVs). The world’s largest EV battery manufacturer — Contemporary Amperex Technology Co Ltd (CATL) — has announced the specifications for a new battery design. Will this improvement push EVs into a dominant role? Here’s a release including a 4-minute video showing CATL’s battery compared to Tesla’s […]