The Fed is Hoarding Cash for a Rainy Day
Hey There Income Hunter, Excess funds are flowing into the Fed’s reverse repo program every day with an all-time new high set this week. You may remember the Fed creating this program to absorb the overflow of cash in the system last year. The overflow was created when the Fed was purchasing $120 billion of […]
Powell Doing a Number on Housing Affordability
Hey There Income Hunter, I have been renting for a year now since moving to Tampa and am ready to buy a house … but this rise in rates has done a job on housing affordability. Homeowners have had an easy time keeping payments low for decades via the adjustable rate mortgage (ARM) … However, […]
Global Interest Rates Are Going Bonkers
Hey There Income Hunter, I have to give Jerome Powell credit. He convinced the media retail investors that the economy is strong, which should allow him to hike rates even further. I say this because over the past few trading days we’ve seen … >> Powell all hawked up at a […]
Powell Back to his Talk Tough and Hope Approach
Hey There Income Hunter, J-Pow spoke at the National Association for Business Economics (NABE) today and was back at it with his talk-tough-and-hope performance. He had a couple of classic lines like this one: “We will take the necessary steps to ensure a return to price stability. In particular, if we conclude that it is […]
Who Is Winning the War?
Hey There Income Hunter, We are trading in the wildest macro environment that I’ve ever seen. And that’s saying something after 40 years in the game. Thankfully, I was able to escape all the geopolitical turmoil and meet up with my son for a weekend of golf in Naples … But […]
Brazil: The New Safe Haven
Hey There Income Hunter, A month into the Ukraine/Russia battle, alliances are becoming clear. The first place to look is which countries put sanctions on Russia and which haven’t. For the west, the US, Germany and Canada have gone to the extreme in punishing Russia, including financial and central bank sanctions. They […]
The New Way to Trade the Markets
Hey There Income Hunter, I have been pounding the table on how inflation can cause havoc on the markets … Then we get the Russian invasion and the seriousness of de-dollarization comes front and center. De-dollarization is a process in which foreign holders of dollar assets liquidate their dollar holdings because the […]
Powell the Magician At It Again
Hey There Income Hunter, I can’t wait to see the tools Federal Reserve Chairman Jerome Powell has at his disposal that will allow him to stop inflation AND maintain full employment. I never saw so many softball questions as those lobbed up to him following yesterday’s FOMC meeting. How about asking, “Can you please explain […]
Saudi Arabia Joins the Evil Empire … What’s Next?
Hey There Income Hunter, The East vs. West battle is heating up. I have said in the past that when the Saudi’s flip over to the East alliance, it is over for the dollar. The reason why I feel that way is when the US defaulted on our promise to redeem dollars for gold, our […]
The Bear Market Deepens … What’s Next?
[kc_row use_container=”yes” _id=”872374″][kc_column width=”12/12″ video_mute=”no” _id=”618104″][kc_column_text _id=”939331″] Hey There Income Hunter, Monday’s market brought back my memory of Black Monday in 1987 … Not because it was a major one-day crash, but because it felt like there was a need to raise cash by selling whatever had a decent bid. Let’s hope we never see […]