Morning
Interesting times in the markets as rates backing up a bit that hit the interest sensitives and a few of the tech giants still are the lion’s share of market returns. It is a frustrating time for investors, so I remind people of what John Bogle once shared.
“Stay the course…. Changing your strategy at the wrong time can be the single most devastating mistake you can make as an investor.”
Jim Thorne was out with this February outlook, and he highlighted Jerome Powell’s interview on 60 Minutes.
Kyle Bass has been warning about China’s financial woes and demographic challenges for years and due to recent events, he is a go to guest on many networks. A short clip is included.
Smarter Markets had Andrea Hotter on, and it was a good discussion on how we have to make changes on this energy transition move.
My wonderful friend who just got back from his native country gave me a quick summary about India and he added a link comparing China to India since 1960. Both David Rosenberg and Jeff Gundlach think it is a great long term investment play for investors.
Brad Hayes of Big Media tackles a much talked about subject as BC tries to convince the public to move away from gas to electric. When I talked to Brad yesterday, he could not believe why energy security is not paramount with citizens and the government. He also was astonished with the BC Utilities Commission decision on a Fortis project to expand in the interior.
While the Fraser Institute looks at the potential changes to the Lands Act in BC. These are top two subjects in BC, and I will have more on it in the following weeks.
I have some good friends connected to the RCMP and many were wondering the outcome of the Ortis case as it really impacted so many in the service, past and present. As one good friend said, he hopes the vetting system gets much more thorough.
Tucker Carlson talked to Calley Means about the wonder drug Ozempic. The company in Europe that produces it is now the most valuable company, but it is not allowed to be sold in Europe. Very interesting discussion!
I am not a Grammy Awards person, but the Tracy Chapman/Luke Combs duo was the highlight to me and many others. It was also sad the following day, Toby Keith passed away who helped Taylor Swift with her first record deal.
David.
PS….hopefully it is a good Super Bowl but at least they have Reba McEntire doing the National Anthem.
Number 1-February Market insights-Jim Thorne (report attached)
‘As we enter a presidential election year in the U.S., financial markets are resonating with historical echoes. One can particularly recognize the rise of populism after the Civil War, which parallels today’s socio-political dynamics. This comparison challenges the conventional wisdom about investing in a world that is constantly evolving. Concomitantly, there are parallels to the post- Second World War era, notably the extreme levels of debt which rival only today. As the war ended and life got back to normal, a growth scare and deflation resulted. Hence my thesis that our transition period out of COVID-19 has all the earmarks of a transitional period of secular stagnation and deflation.’
February Market Insights by Dr. James Thorne – Trump’s Shadow
Number 2-Jim Thorne- Fed Chair Jerome Powell shares why Fed hasn't yet cut interest rates | 60 Minutes
Note cuts of 50bps on the table…👇”Cuts in the federal funds rate would likely be a quarter, maybe half a percentage point at a time as long as inflation data remain good
https://www.cbsnews.com/news/fed-chair-jerome-powell-interest-rates-60-minutes-transcript/
Number 3-China ‘had 20 plates spinning’, and they are all crashing right now, says Hayman Capital’s Kyle Bass
Its deflation coming to NA shores. The Chinese economy is heavily built on debt.)
Number 4-Smarter Markets-Setting the Course with Andrea Hotter .
On this week’s installment of our Setting Course series, we welcome Andrea Hotter, Special Correspondent at Fastmarkets, into the SmarterMarkets™ studio. Host David Greely sits down with Andrea to discuss what’s been happening in the metals markets that are critical to the energy transition including the nickel, copper, and lithium markets – as well as the increasing influence of geopolitics
https://www.smartermarkets.media/setting-course-episode-5-andrea-hotter
Number 5-India
India is about 20 years behind China in terms of physical infrastructure (roads, ports, power, airports, factories, etc.) but leading edge in terms of digital infrastructure (the range of services – govt and private – that are accessible by phone is incredible; most services are app-driven on your phone – and phones and telco rates are dirt cheap; the govt is trying to link up unique individual biometric data (part of your national identity profile/card), health info; banking/financial info; and all government services (e.g., driver’s license, passport, utility billing, birth certificate, etc.) – it is called DigiLocker (you can store all your info electronically).”
From 1960 to 2022 (China vs India)
Number 6-Are we throwing away our energy security?-Brad Hayes (article attached)
https://big-media.ca/are-we-throwing-away-our-energy-security/
The provincial government and BC Hydro talk about ensuring B.C.’s energy future, but there appears to be no firm plan to generate the required electricity. Emissions reduction is being prioritized over energy security. B.C. may well be throwing away its energy securityBrad Hayes-BC Energy Security
Number 9-Tucker Carlson and guest Calley Means talk about Ozempic
https://www.youtube.com/watch?v=fFrZzW9ozu4
If a fish tank is dirty, you clean the tank. You don’t drug the fish.” Calley Means makes the case against Ozempic.
We hope you found the Top Ten interesting this week, and are looking forward to another selection of articles, stories, and commentary next week. If you know of anyone else who would be interested in receiving our weekly note, please let me know.
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