Stock Market Wealth
Become A Wealth Machine
In the aftermath of 2008, central banks and governments concocted a plan: If we lower interest rates to zero and inject liquidity, cheap credit and make assurances to the market that we’ll support it, monetize debt and buy mortgages, there will be a wealth effect felt by the general public and they’ll go back to borrowing and spending.
Don’t look for justice!
The markets and the FED do not see eye to eye right now.
The FED raised rates by 75 bps, as was already fully priced, yet the markets absolutely tanked to end the Wednesday session, tumbled throughout Thursday and got annihilated on Friday to close the week.
When I think about the current trials and tribulations of the global economy, I often force myself to put things in perspective.
A recession and a reset are two different things, but they often lead to the same result – a rebirth and recovery of the global economy.
Lieutenant Dan has to be one of my favorite movie characters. If you have not watched Forrest Gump, the iconic film from the mid-1990s, it tells the story of a character, played by Tom Hanks, during the time of the Vietnam War and its aftermath.
I spent the summer in Europe. First, I was in London. Next, I spent time in Chamonix in the French Alps. From there, we went South to Milano and ended the trip in the Amalfi Coast.
I taught my girl how to ride a bike. My wife and I really wanted her to ride with us around town, so when the quarantines and shutdowns occurred and Tel Aviv, the liveliest city I know, became Zombieland, we would go down to the street and practice cycling.
I have ONLY ONE silver holding in the model portfolio and it’s an under-the-radar NEW IPO, which was funded at the pre-IPO round by billionaire Eric Sprott, among other world-class investors, for CAD$0.33/share. Next, it closed the IPO round at CAD$0.50, yet, because 2022 is a freak year, it now trades 40$ BELOW the pre-IPO round, reserved for only the most strategic investors!