Fed chief Janet Yellen will testify before the U.S. Senate Banking Committee on Tuesday. She is likely to receive a frosty reception from the Republicans emboldened by President Trump’s stinging remarks about the Federal Reserve and its current chair. Take a look…
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“Janet Yellen is highly political”
November 3, 2015
Authored by Mark St.Cyr,
For those not familiar, the reference is attributed to a scene from the movie “Margin Call” where John Tuld (Jeremy Irons) makes the sanguinary argument for dumping its portfolio of toxic holdings immediately against contradictory arguments that it’ll be seen as panicking by others with the line, “It’s not panicking if you’re first.”
Since November 8th, several public companies have unsuspectingly fallen into the cross hairs of Trump tweets sending their stocks gyrating violently while adding or erasing millions of dollars worth of market cap in a matter of seconds. Here is just a small sample:
Toyota Motor said will build a new plant in Baja, Mexico, to build Corolla cars for U.S. NO WAY! Build plant in U.S. or pay big border tax.
— Donald J. Trump (@realDonaldTrump) January 5, 2017
One of the most important traits that an investor can have is patience. Everyone knows this and it makes perfect sense. Patience allows you to be opportunistic and only choose the best opportunities for your portfolio. Despite this common knowledge nearly all investors ignore the most important asset in their portfolio. The most important asset in every portfolio is Cash. Cash is an asset that gives investors optionality and helps improve returns in the future.
In an ominous sign of the need for more tightening, Chinese inflation (CPI and PPI) ripped higher in January.
Both Consumer and Producer prices rose more than expected but it was the 6.9% spike in PPI that is most troublesome - fastest rate of price expansion since August 2011...
And Consumer prices are rising at the fastest since 2013...