investmentwatchblog--2020-07-02--Double-WTF Chart of the Year Update: Tesla Becomes Most Valuable Automaker, Blows by Toyota

To mark this moment in the history of insane stock prices where a tiny automaker with a global market share of 0.5 % and a big loss in 2019 became the most valuable automaker in the world .
Shares of Tesla jumped 3.9 % this morning to $ 1,130 , which gave the automaker a market value of $ 210 billion .
It thereby finally surpassed Toyota , the formerly # 1 most valuable automaker in the world , whose shares declined 1.6 % in Tokyo at the close today , giving it a market cap of ¥21,719 trillion – @ @ @ @ @ @ @ s exchange rate .
That Tesla – a tiny automaker with a global market share of 0.5 % ( half a percent ) that lost $ 862 million in 2019 , when most automakers made money because those were the Good Times – has become a supernatural phenomenon led by a guy who is regularly seen walking on water , is proven beyond reasonable doubt by the double-WTF round-trip chart of the year ( stock prices via YCharts ) : Tesla has gained $ 143 billion in value since March 18 this year @ @ @ @ @ @ @ $ 66.6 billion to $ 210 billion in the three months during which the Fed threw nearly $ 3 trillion at the markets to accomplish precisely this kind of feat .
And the people and algos that buy the shares have been outdoing even themselves to accomplish what the Fed wanted them to accomplish .
Tesla is burning large amounts of cash and constantly needs to raise new cash to burn .
And so , on February 13 , it raised over $ 2 billion from investors by selling them more shares .
@ @ @ @ @ @ @ a while .
When investors are so eager year-after-year to hand the company new money to burn , while driving up the share price , the company is under no pressure to ever stop its cash-burn machine .
It can just keep burning those investors ’ cash , and Elon Musk can continue walking on water .
Now there is the possibility – and likelihood – that S & P Dow Jones Indices will induct Tesla ’ s shares into the S & P 500 Index at a ridiculous valuation – which is @ @ @ @ @ @ @ ’ t get even more ridiculous , since tesla is a supernatural phenomenon , led by a guy who walks on water .
Tesla delivered 367,500 vehicles globally in 2019 .
The entire auto industry delivered 72.6 million vehicles globally .
This gives Tesla a market share of 0.5 % .
Tesla is a tiny automaker among giants .
But it has shaken up the giants in recent years , and it got them to react and develop EVs , and they ’ re now all developing and building and selling EVs – @ @ @ @ @ @ @ , and kudos to Musk for accomplishing that .
No one else before him had been able to shake up the industry like that .
But now , for the first time , Tesla has real competition in the EV segment – and that competition is piling more and more models later this year and next year , and in future years .
In terms of Tesla beating Toyota as the most valuable automaker , here are some fun data points that the market , of course , couldn ’ t care less @ @ @ @ @ @ @ revenue in 2019 : $ 24.6 billion , less than one-tenth of Toyota ’ s revenues ; Net loss : $ 862 million .
And yet , Tesla is worth more than Toyota , and worth more than any other automaker out there , and worth more than just a small number of US companies .
This simple fact just underlines how relentlessly insane this market has become .

To mark this moment in the history of insane stock prices where a tiny automaker with a global market share of 0.5% and a big loss in 2019 became the most valuable automaker in the world.
Shares of Tesla jumped 3.9% this morning to $1,130, which gave the automaker a market value of $210 billion. It thereby finally surpassed Toyota, the formerly #1 most valuable automaker in the world, whose shares declined 1.6% in Tokyo at the close today, giving it a market cap of ¥21,719 trillion – or $202 billion at today’s exchange rate.
That Tesla – a tiny automaker with a global market share of 0.5% (half a percent) that lost $862 million in 2019, when most automakers made money because those were the Good Times – has become a supernatural phenomenon led by a guy who is regularly seen walking on water, is proven beyond reasonable doubt by the double-WTF round-trip chart of the year (stock prices via YCharts):
Tesla has gained $143 billion in value since March 18 this year, more than tripling its value from $66.6 billion to $210 billion in the three months during which the Fed threw nearly $3 trillion at the markets to accomplish precisely this kind of feat. And the people and algos that buy the shares have been outdoing even themselves to accomplish what the Fed wanted them to accomplish.
Tesla is burning large amounts of cash and constantly needs to raise new cash to burn. And so, on February 13, it raised over $2 billion from investors by selling them more shares. That will keep the company fueled for a while.
When investors are so eager year-after-year to hand the company new money to burn, while driving up the share price, the company is under no pressure to ever stop its cash-burn machine. It can just keep burning those investors’ cash, and Elon Musk can continue walking on water.
Now there is the possibility – and likelihood – that S&P Dow Jones Indices will induct Tesla’s shares into the S&P 500 Index at a ridiculous valuation – which is not to say that this valuation couldn’t get even more ridiculous, since tesla is a supernatural phenomenon, led by a guy who walks on water.
We are primarily funded by readers. Please subscribe and donate to support us!
Tesla delivered 367,500 vehicles globally in 2019. The entire auto industry delivered 72.6 million vehicles globally. This gives Tesla a market share of 0.5%. Tesla is a tiny automaker among giants.
But it has shaken up the giants in recent years, and it got them to react and develop EVs, and they’re now all developing and building and selling EVs – and that’s a good thing, and kudos to Musk for accomplishing that. No one else before him had been able to shake up the industry like that.
But now, for the first time, Tesla has real competition in the EV segment – and that competition is piling more and more models later this year and next year, and in future years.
In terms of Tesla beating Toyota as the most valuable automaker, here are some fun data points that the market, of course, couldn’t care less about:
Toyota’s annual revenue in its fiscal year (ended March 31, 2020): $275.4 billion. Net income: $19.1 billion.
Tesla’s annual revenue in 2019: $24.6 billion, less than one-tenth of Toyota’s revenues; Net loss: $862 million.
And yet, Tesla is worth more than Toyota, and worth more than any other automaker out there, and worth more than just a small number of US companies. This simple fact just underlines how relentlessly insane this market has become.


investmentwatchblog--2020-07-02--Massive Shifts Underway, Rental Market Reacts in Near-Real Time: Rents Plunge in San Francisco & Oil

Massive Shifts Underway, Rental Market Reacts in Near-Real Time: Rents Plunge in San Francisco & Oil Patch, Drop in Expensive Cities. But Long List of Double-Digit Gainers

Rents in San Francisco are still crazy-overpriced .
There are now at least three factors that have plowed into the US housing market – and the rental market is reacting in near-real time to them : The unicorn-startup bust that began last year and built up into a crescendo this year ; the Pandemic-inspired move to work-from-home ; and the oil-and-gas bust that took on special vigor this spring when crude oil prices totally collapsed .
People are bailing out of some places and moving elsewhere .
In the most expensive cities , rents are dropping , but in other @ @ @ @ @ @ @ rents are skyrocketing by the double-digits .
Rents in San Francisco plunged more than in any other major market in June .
This is still the most expensive city to rent in , though there are a few zip codes in Manhattan and in Los Angeles where rents are more expensive than in the most expensive zip code in San Francisco .
But it got less expensive in June .
In June , the median asking rent for a one-bedroom apartment dropped 2.4 % from May , to $ 3,280 , down 11.8 @ @ @ @ @ @ @ made the city the fastest-dropping rental market in the US .
The median asking rent for two-bedroom apartments in June fell 1.8 % from May to $ 4,340 and was down 9.6 % year-over-year .
The still crazy-overpriced San Francisco market – it ’ s called the “ Housing Crisis ” locally – had hit a ceiling in October 2015 , with the median asking rent for a 1-BR apartment at $ 3,670 and for a 2-BR at $ 5,000 .
Then rents declined by close to 10 % into 2017 before picking @ @ @ @ @ @ @ out a new record in June last year ( by $ 50 ) , 2-BR rents never got close to their October 2015 record and are now 13.2 % below it .
These are median asking rents .
“ Median ” means half the asking rents are higher , and half are lower .
“ Asking rent ” is the advertised rent .
This is a measure of the current market in near-real time , like the price tag in a store that can be changed from day to day to attract shoppers @ @ @ @ @ @ @ rent is not a measure of what tenants are currently paying on their existing leases or under rent-control programs .
A sea of red in the 17 most expensive rental markets .
The table below shows the 17 most expensive major rental markets by median asking rents .
The shaded area shows their respective peaks and changes from those peaks .
Almost all of them have declined from their peaks – with eight of them by the double digits , led by Chicago and Honolulu , where rents have gotten crushed since their @ @ @ @ @ @ @ now solidly on the list of double-digit decliners , booking the third largest decline-from-peak in 2-BR rents ( -15.1 % ) , behind Chicago and Honolulu , and the ninth largest in 1-BR rents ( -9.5 % ) .
Denver , not long ago one of the hottest rental markets in the US , has frozen over , with declines-from-peak in the -10 % range .
The rents we ’ re discussing here are for apartments in apartment buildings , including new construction .
Not included are rents for single-family houses , condos @ @ @ @ @ @ @ , and apartments with three or more bedrooms .
The data is collected by Zumper from over 1 million active listings , including Multiple Listings Service ( MLS ) in the 100 largest markets .
The Cities with the biggest % -declines in 1-BR rents .
The table below shows the 31 cities with the largest year-over-year rent declines in June for 1-BR apartments , with San Francisco at the top , followed by Syracuse , NY , a college town now under siege from the Pandemic .
Denver , with a 10 @ @ @ @ @ @ @ double-digit decliners .
Then there are a bunch of cities in the Texas-Oklahoma-Louisiana oil-patch on this list , including Tulsa and Houston in 5th and 6th place .
There are eight cities in Texas on this list .
Louisiana is represented by New Orleans ( # 18 ) and Baton Rouge ( # 31 ) .
The oil patch is in serious trouble .
The oil bust started in mid-2014 , when the price of crude oil grade WTI began its long decline from $ 100-plus per barrel to a low of $ @ @ @ @ @ @ @ Then the price began to recover but never made it back to levels where the shale oil industry can survive long-term .
In January this year , WTI started heading lower again , and this April hit a new low , when in some places the price at the wellhead dropped to zero and when WTI futures briefly collapsed below zero for the first time ever .
Hundreds of oil-and-gas drillers have filed for bankruptcy over the past three years , and the speed and magnitude of those bankruptcy filings is picking up @ @ @ @ @ @ @ Chesapeake , which is based in Oklahoma City , filing for bankruptcy on Sunday .
Houston is the center of the US oil patch , and despite its vast and diversified economy , the city has gotten slammed by the oil-and-gas bust in various ways , including by the highest office vacancy rates in the US , now at a catastrophic 24.5 % .
Also on this list are Silicon Valley ( San Jose ) , Southern California ( Los Angeles , Anaheim , Santa Ana ) , and three markets in Florida @ @ @ @ @ @ @ biggest % -increases in 1-BR rents .
OK , get ready .
Among the 100 largest rental markets are 9 cities where rents skyrocketed by over 15 % year-over-year in June .
And except for Philadelphia , all of them sport median asking rents for 1-BR apartments that are well below the national median ( $ 1,229 according to Zumper ) .
Meaning these cities with these huge rent increases are still deep in the lower half of the rental spectrum .
In total , there are 20 cities with double-digit rent increases @ @ @ @ @ @ @ 59 cities experienced year-over-year increases in the median asking rent in June .
In eight cities , there was no change in rents .
And in 33 cities , asking rents declined , including in many of the largest cities in the US .
The top 100 rental markets , from most expensive to least expensive .
The list goes from San Francisco to Tulsa , with asking rents for 1-BR and 2-BR apartments , in order of 1-BR rents , from $ 3,280 in San Francisco ( -11.8 % ) to $ @ @ @ @ @ @ @ .
These rents that are dropping in some markets and surging in others show two things : • Rental markets are local , and the median national rent is irrelevant at the local level .
• Big shifts are underway in housing , and the rental market is pointing out the weaknesses in demand where it exists in near-real time .
Markets where rents are increasing 10 % or 15 % a year are asking for trouble unless they have a booming job market with surging wages – this was the case in @ @ @ @ @ @ @ hot markets .
But if they don ’ t have surging wages , many renters , who are already tapped out , will run out of money .
And it ’ s renters that keep the show going .
You can search the list list via the search box in your browser .
If your smartphone clips this 6-column table on the right , hold your device in landscape position :

Rents in San Francisco are still crazy-overpriced.
There are now at least three factors that have plowed into the US housing market – and the rental market is reacting in near-real time to them: The unicorn-startup bust that began last year and built up into a crescendo this year; the Pandemic-inspired move to work-from-home; and the oil-and-gas bust that took on special vigor this spring when crude oil prices totally collapsed.
People are bailing out of some places and moving elsewhere. In the most expensive cities, rents are dropping, but in other cities – a lot of them – rents are skyrocketing by the double-digits.
Crazy-overpriced San Francisco rents.
Rents in San Francisco plunged more than in any other major market in June. This is still the most expensive city to rent in, though there are a few zip codes in Manhattan and in Los Angeles where rents are more expensive than in the most expensive zip code in San Francisco. But it got less expensive in June.
In June, the median asking rent for a one-bedroom apartment dropped 2.4% from May, to $3,280, down 11.8% from June last year, which made the city the fastest-dropping rental market in the US.
The median asking rent for two-bedroom apartments in June fell 1.8% from May to $4,340 and was down 9.6% year-over-year.
The still crazy-overpriced San Francisco market – it’s called the “Housing Crisis” locally – had hit a ceiling in October 2015, with the median asking rent for a 1-BR apartment at $3,670 and for a 2-BR at $5,000. Then rents declined by close to 10% into 2017 before picking up again. While 1-BR rents eked out a new record in June last year (by $50), 2-BR rents never got close to their October 2015 record and are now 13.2% below it.
These are median asking rents. “Median” means half the asking rents are higher, and half are lower. “Asking rent” is the advertised rent. This is a measure of the current market in near-real time, like the price tag in a store that can be changed from day to day to attract shoppers, depending on market conditions. Asking rent is not a measure of what tenants are currently paying on their existing leases or under rent-control programs.
A sea of red in the 17 most expensive rental markets.
The table below shows the 17 most expensive major rental markets by median asking rents. The shaded area shows their respective peaks and changes from those peaks. Almost all of them have declined from their peaks – with eight of them by the double digits, led by Chicago and Honolulu, where rents have gotten crushed since their respective peaks in 2015.
Seattle is now solidly on the list of double-digit decliners, booking the third largest decline-from-peak in 2-BR rents (-15.1%), behind Chicago and Honolulu, and the ninth largest in 1-BR rents (-9.5%).
Denver, not long ago one of the hottest rental markets in the US, has frozen over, with declines-from-peak in the -10% range.
The rents we’re discussing here are for apartments in apartment buildings, including new construction. Not included are rents for single-family houses, condos for rent, rooms, efficiency apartments, and apartments with three or more bedrooms. The data is collected by Zumper from over 1 million active listings, including Multiple Listings Service (MLS) in the 100 largest markets.
The Cities with the biggest %-declines in 1-BR rents.
The table below shows the 31 cities with the largest year-over-year rent declines in June for 1-BR apartments, with San Francisco at the top, followed by Syracuse, NY, a college town now under siege from the Pandemic. Denver, with a 10% year-over-year decline, rounds out the double-digit decliners.
We are primarily funded by readers. Please subscribe and donate to support us!
Then there are a bunch of cities in the Texas-Oklahoma-Louisiana oil-patch on this list, including Tulsa and Houston in 5th and 6th place. There are eight cities in Texas on this list. Louisiana is represented by New Orleans (#18) and Baton Rouge (#31).
The oil patch is in serious trouble. The oil bust started in mid-2014, when the price of crude oil grade WTI began its long decline from $100-plus per barrel to a low of $26 a barrel in early 2016. Then the price began to recover but never made it back to levels where the shale oil industry can survive long-term.
In January this year, WTI started heading lower again, and this April hit a new low, when in some places the price at the wellhead dropped to zero and when WTI futures briefly collapsed below zero for the first time ever.
Hundreds of oil-and-gas drillers have filed for bankruptcy over the past three years, and the speed and magnitude of those bankruptcy filings is picking up, with one of the biggies, Chesapeake, which is based in Oklahoma City, filing for bankruptcy on Sunday.
Houston is the center of the US oil patch, and despite its vast and diversified economy, the city has gotten slammed by the oil-and-gas bust in various ways, including by the highest office vacancy rates in the US, now at a catastrophic 24.5%.
Also on this list are Silicon Valley (San Jose), Southern California (Los Angeles, Anaheim, Santa Ana), and three markets in Florida, among others.
Biggest Declines, in %
1 BR Rent Y/Y % 1 San Francisco, CA $3,280 -11.8% 2 Syracuse, NY $860 -11.3% 3 Denver, CO $1,440 -10.0% 4 Irving, TX $1,080 -9.2% 5 Tulsa, OK $590 -9.2% 6 Houston, TX $1,100 -9.1% 7 Madison, WI $1,080 -8.5% 8 Aurora, CO $1,090 -8.4% 9 San Jose, CA $2,300 -8.0% 10 Orlando, FL $1,220 -6.9% 11 Durham, NC $1,040 -6.3% 12 Laredo, TX $780 -6.0% 13 Anaheim, CA $1,600 -5.9% 14 Jacksonville, FL $900 -5.3% 15 Charlotte, NC $1,200 -4.8% 16 Fort Worth, TX $1,100 -4.3% 17 Los Angeles, CA $2,150 -3.6% 18 New Orleans, LA $1,380 -3.5% 19 Santa Ana, CA $1,720 -3.4% 20 Seattle, WA $1,800 -2.7% 21 Plano, TX $1,130 -2.6% 22 Tampa, FL $1,150 -2.5% 23 Corpus Christi, TX $830 -2.4% 24 Louisville, KY $860 -2.3% 25 San Antonio, TX $880 -2.2% 26 Salt Lake City, UT $1,050 -1.9% 27 Raleigh, NC $1,020 -1.9% 28 New York, NY $2,890 -1.7% 29 Boston, MA $2,410 -1.6% 30 Dallas, TX $1,230 -1.6% 31 Baton Rouge, LA $820 -1.2%
The Cities with biggest %-increases in 1-BR rents.
OK, get ready. Among the 100 largest rental markets are 9 cities where rents skyrocketed by over 15% year-over-year in June. And except for Philadelphia, all of them sport median asking rents for 1-BR apartments that are well below the national median ($1,229 according to Zumper). Meaning these cities with these huge rent increases are still deep in the lower half of the rental spectrum. In total, there are 20 cities with double-digit rent increases:
Biggest Increases, in % 1 BR Rent Y/Y % 1 Cleveland, OH $940 16.0% 2 Indianapolis, IN $870 16.0% 3 Columbus, OH $810 15.7% 4 Rochester, NY $970 15.5% 5 Chattanooga, TN $900 15.4% 6 Cincinnati, OH $900 15.4% 7 Philadelphia, PA $1,510 15.3% 8 St Louis, MO $910 15.2% 9 Norfolk, VA $920 15.0% 10 Lincoln, NE $770 14.9% 11 Newark, NJ $1,320 14.8% 12 Des Moines, IA $930 14.8% 13 Detroit, MI $700 14.8% 14 Wichita, KS $700 14.8% 15 Bakersfield, CA $840 13.5% 16 Reno, NV $1,030 13.2% 17 Baltimore, MD $1,320 11.9% 18 St Petersburg, FL $1,230 11.8% 19 Akron, OH $610 10.9% 20 Boise, ID $1,060 10.4% 21 Tucson, AZ $700 9.4% 22 Buffalo, NY $1,080 9.1% 23 Chesapeake, VA $1,080 9.1% 24 Fresno, CA $1,090 9.0% 25 Nashville, TN $1,340 8.9% 26 Memphis, TN $790 8.2% 27 Sacramento, CA $1,360 7.9% 28 Colorado Springs, CO $990 7.6% 29 Arlington, TX $880 7.3% 30 Albuquerque, NM $750 7.1% 31 Gilbert, AZ $1,280 6.7%
Among the top 100 cities, 59 cities experienced year-over-year increases in the median asking rent in June. In eight cities, there was no change in rents. And in 33 cities, asking rents declined, including in many of the largest cities in the US.
The top 100 rental markets, from most expensive to least expensive.
The list goes from San Francisco to Tulsa, with asking rents for 1-BR and 2-BR apartments, in order of 1-BR rents, from $3,280 in San Francisco (-11.8%) to $590 in Tulsa (-9.2%).
These rents that are dropping in some markets and surging in others show two things:
Rental markets are local, and the median national rent is irrelevant at the local level.
Big shifts are underway in housing, and the rental market is pointing out the weaknesses in demand where it exists in near-real time.
Markets where rents are increasing 10% or 15% a year are asking for trouble unless they have a booming job market with surging wages – this was the case in San Francisco, Seattle, and other hot markets. But if they don’t have surging wages, many renters, who are already tapped out, will run out of money. And it’s renters that keep the show going.
You can search the list list via the search box in your browser. If your smartphone clips this 6-column table on the right, hold your device in landscape position:
1-BR rent Y/Y % 2-BR rent Y/Y % 1 San Francisco, CA $3,280 -11.8% $4,340 -9.6% 2 New York, NY $2,890 -1.7% $3,210 -5.0% 3 Boston, MA $2,410 -1.6% $2,900 2.1% 4 Oakland, CA $2,300 4.5% $2,850 4.8% 4 San Jose, CA $2,300 -8.0% $2,860 -4.7% 6 Washington, DC $2,270 1.3% $2,920 2.5% 7 Los Angeles, CA $2,150 -3.6% $2,960 -5.1% 8 Miami, FL $1,800 0.6% $2,310 0.4% 8 Seattle, WA $1,800 -2.7% $2,250 -6.3% 10 San Diego, CA $1,750 -0.6% $2,300 -4.2% 11 Santa Ana, CA $1,720 -3.4% $2,310 6.0% 12 Honolulu, HI $1,670 0.0% $2,100 -8.7% 13 Fort Lauderdale, FL $1,650 3.1% $2,200 4.8% 14 Anaheim, CA $1,600 -5.9% $1,960 -7.5% 14 Long Beach, CA $1,600 3.2% $2,010 0.5% 16 Chicago, IL $1,510 1.3% $1,800 0.0% 16 Philadelphia, PA $1,510 15.3% $1,750 2.9% 18 Providence, RI $1,470 2.8% $1,650 4.4% 19 Atlanta, GA $1,440 5.1% $1,840 5.7% 19 Denver, CO $1,440 -10.0% $1,880 -5.1% 21 Portland, OR $1,420 4.4% $1,750 1.2% 22 Minneapolis, MN $1,400 0.0% $1,900 3.8% 22 Scottsdale, AZ $1,400 1.4% $1,870 -2.1% 24 New Orleans, LA $1,380 -3.5% $1,610 5.2% 25 Sacramento, CA $1,360 7.9% $1,600 8.8% 26 Nashville, TN $1,340 8.9% $1,450 7.4% 27 Baltimore, MD $1,320 11.9% $1,540 10.8% 27 Newark, NJ $1,320 14.8% $1,680 14.3% 29 Gilbert, AZ $1,280 6.7% $1,490 4.2% 30 Austin, TX $1,250 5.0% $1,520 0.7% 30 Chandler, AZ $1,250 3.3% $1,440 -0.7% 32 Dallas, TX $1,230 -1.6% $1,680 -1.8% 32 St Petersburg, FL $1,230 11.8% $1,600 3.9% 34 Orlando, FL $1,220 -6.9% $1,400 -6.7% 35 Charlotte, NC $1,200 -4.8% $1,370 0.0% 36 Tampa, FL $1,150 -2.5% $1,390 4.5% 37 Plano, TX $1,130 -2.6% $1,540 -0.6% 38 Henderson, NV $1,120 -0.9% $1,350 0.0% 39 Richmond, VA $1,110 2.8% $1,370 11.4% 40 Fort Worth, TX $1,100 -4.3% $1,360 1.5% 40 Houston, TX $1,100 -9.1% $1,310 -6.4% 42 Aurora, CO $1,090 -8.4% $1,350 -9.4% 42 Fresno, CA $1,090 9.0% $1,240 8.8% 44 Buffalo, NY $1,080 9.1% $1,350 14.4% 44 Chesapeake, VA $1,080 9.1% $1,250 4.2% 44 Irving, TX $1,080 -9.2% $1,390 -10.3% 44 Madison, WI $1,080 -8.5% $1,310 -5.1% 44 Pittsburgh, PA $1,080 1.9% $1,350 3.8% 49 Boise, ID $1,060 10.4% $1,120 1.8% 50 Salt Lake City, UT $1,050 -1.9% $1,300 -5.1% 50 Virginia Beach, VA $1,050 0.0% $1,250 1.6% 52 Durham, NC $1,040 -6.3% $1,230 -3.1% 53 Reno, NV $1,030 13.2% $1,350 3.1% 54 Raleigh, NC $1,020 -1.9% $1,200 0.0% 55 Phoenix, AZ $1,010 1.0% $1,280 2.4% 56 Las Vegas, NV $1,000 1.0% $1,200 4.3% 56 Milwaukee, WI $1,000 3.1% $1,170 14.7% 58 Colorado Springs, CO $990 7.6% $1,250 7.8% 59 Rochester, NY $970 15.5% $1,130 15.3% 60 Anchorage, AK $960 5.5% $1,180 2.6% 60 Kansas City, MO $960 0.0% $1,120 0.9% 60 Mesa, AZ $960 4.3% $1,190 3.5% 63 Cleveland, OH $940 16.0% $1,000 14.9% 64 Des Moines, IA $930 14.8% $990 15.1% 65 Norfolk, VA $920 15.0% $1,070 1.9% 66 St Louis, MO $910 15.2% $1,290 12.2% 67 Chattanooga, TN $900 15.4% $1,020 14.6% 67 Cincinnati, OH $900 15.4% $1,200 7.1% 67 Jacksonville, FL $900 -5.3% $1,100 1.9% 70 Arlington, TX $880 7.3% $1,150 5.5% 70 San Antonio, TX $880 -2.2% $1,100 -1.8% 72 Glendale, AZ $870 3.6% $1,100 2.8% 72 Indianapolis, IN $870 16.0% $940 16.0% 74 Louisville, KY $860 -2.3% $940 -1.1% 74 Syracuse, NY $860 -11.3% $1,060 1.0% 76 Omaha, NE $850 1.2% $1,020 -2.9% 77 Bakersfield, CA $840 13.5% $1,070 15.1% 78 Corpus Christi, TX $830 -2.4% $1,050 -0.9% 79 Baton Rouge, LA $820 -1.2% $940 1.1% 80 Columbus, OH $810 15.7% $1,050 -1.9% 80 Knoxville, TN $810 1.3% $950 5.6% 80 Spokane, WA $810 0.0% $1,070 7.0% 83 Winston Salem, NC $800 3.9% $880 6.0% 84 Augusta, GA $790 5.3% $880 8.6% 84 Memphis, TN $790 8.2% $840 9.1% 86 Laredo, TX $780 -6.0% $890 0.0% 87 Lincoln, NE $770 14.9% $920 3.4% 88 Tallahassee, FL $760 0.0% $900 2.3% 89 Albuquerque, NM $750 7.1% $900 7.1% 89 Lexington, KY $750 0.0% $950 -3.1% 89 Oklahoma City, OK $750 4.2% $880 0.0% 92 Greensboro, NC $720 1.4% $840 1.2% 93 Detroit, MI $700 14.8% $800 15.9% 93 Tucson, AZ $700 9.4% $930 5.7% 93 Wichita, KS $700 14.8% $750 0.0% 96 El Paso, TX $680 4.6% $800 0.0% 97 Lubbock, TX $650 3.2% $840 7.7% 97 Shreveport, LA $650 0.0% $800 14.3% 99 Akron, OH $610 10.9% $730 0.0% 100 Tulsa, OK $590 -9.2% $810 1.3%


investmentwatchblog--2020-07-02--Uber, Lyft, HopSkipDrive and Zum jointly filed papers challenging the authority of the California Pu

Uber, Lyft, HopSkipDrive and Zum jointly filed papers challenging the authority of the California Public Utilities Commission to determine that their drivers are employees.

Uber and Lyft may be headed for a showdown with the California agency that regulates them .
The San Francisco ride-hailing companies , along with two smaller ride services for children called HopSkipDrive and Zum , on Tuesday filed papers challenging the authority of the California Public Utilities Commission to determine that their drivers are employees .
At issue is a June 9 “ scoping memo ” from agency commissioner Genevieve Shiroma that said “ for now , TNC drivers are presumed to be employees , ” using the acronym for transportation network companies , which is what the commission @ @ @ @ @ @ @ memo is a mechanism to identify future issues rather than a formal decision .
The scoping memo ’ s reason was AB5 , California ’ s new gig-work law that makes it harder to companies to claim that workers are independent contractors , as the ride-hailing companies classify their drivers .
The scoping memo and a June 2 letter from a director at the commission said the ride services must provide workers ’ compensation for their drivers under AB5 , which set a July 1 deadline for that insurance coverage .
“ No @ @ @ @ @ @ @ ) was or could be made by the Assigned Commissioner , or even by the full Commission , ” the four ride companies wrote in a motion filed Tuesday .
“ There is a substantial risk that the Scoping Memo will be misinterpreted , and that the ultimate decision in this proceeding will be based on an erroneous legal foundation.
” The four companies said they want the commission to clarify that the scoping memo statement “ is not a determination that drivers who use the TNCs ’ ( software and services ) @ @ @ @ @ @ @ , the scoping memo ’ s author , to clarify that “ she did not reach — nor is authorized to reach — any decision finding that all TNCs are obligated to provide workers ’ compensation insurance for drivers.
” Uber and Lyft fiercely reject any contention that AB5 means they must reclassify drivers as employees , and are battling that possibility in the courts and with a November ballot measure .
Now they are also battling the state commission that regulates them .
The motion said the commission lacked any authority under @ @ @ @ @ @ @ drivers ’ employment status .
Instead , that authority rests with courts , it said , referring to a misclassification lawsuit against Uber and Lyft by the state attorney general and city attorneys .
Moreover , the memo was written by a single commissioner , who “ lacks authority to resolve a contested issue of substantive law , ” the companies wrote .
Only the full commission could determine that , they said , and that would require hearings , public input and a formal board vote .
The companies said they have @ @ @ @ @ @ @ substantial evidence ” about why they believe AB5 does not apply to them .
Moreover , they said , the commission already waived its oversight about driver status .
In 2013 it wrote that it would not “ meddle in their business model by forcing TNCs to designate each driver an employee or contractor.
” The commission did not reply to requests for comment on the companies ’ motion .
Before the filing was submitted , spokeswoman Terrie Prosper said in a email that it “ expects all carriers to comply with the @ @ @ @ @ @ @ determine a course of action if and when it discovers that a ( ride-hailing company ) is out of compliance with those requirements.
” “ Because AB5 deems ( ride-hail ) drivers to be employees , the ( agency ) must ensure that ( the companies ) comply with those requirements applicable to employees , ” Prosper said in an earlier email .
Uber and Lyft both said their focus is on the ballot measure which would keep drivers as independent contractors while entitling them to some benefits and earnings guarantees .
“ @ @ @ @ @ @ @ further clarification from the ( commission ) around their flawed presumptions , ” Lyft spokeswoman Julie Wood said in an email .

www.sfchronicle.com/business/article/Uber-and-Lyft-say-regulator-can-t-make-drivers-15380707.php
Uber and Lyft may be headed for a showdown with the California agency that regulates them.
The San Francisco ride-hailing companies, along with two smaller ride services for children called HopSkipDrive and Zum, on Tuesday filed papers challenging the authority of the California Public Utilities Commission to determine that their drivers are employees.
At issue is a June 9 “scoping memo” from agency commissioner Genevieve Shiroma that said “for now, TNC drivers are presumed to be employees,” using the acronym for transportation network companies, which is what the commission calls on-demand ride services. A scoping memo is a mechanism to identify future issues rather than a formal decision.
The scoping memo’s reason was AB5, California’s new gig-work law that makes it harder to companies to claim that workers are independent contractors, as the ride-hailing companies classify their drivers. The scoping memo and a June 2 letter from a director at the commission said the ride services must provide workers’ compensation for their drivers under AB5, which set a July 1 deadline for that insurance coverage.
“No such finding (that drivers are employees) was or could be made by the Assigned Commissioner, or even by the full Commission,” the four ride companies wrote in a motion filed Tuesday. “There is a substantial risk that the Scoping Memo will be misinterpreted, and that the ultimate decision in this proceeding will be based on an erroneous legal foundation.”
The four companies said they want the commission to clarify that the scoping memo statement “is not a determination that drivers who use the TNCs’ (software and services) are employees.” They also want Shiroma, the scoping memo’s author, to clarify that “she did not reach — nor is authorized to reach — any decision finding that all TNCs are obligated to provide workers’ compensation insurance for drivers.”
Uber and Lyft fiercely reject any contention that AB5 means they must reclassify drivers as employees, and are battling that possibility in the courts and with a November ballot measure.
Now they are also battling the state commission that regulates them.
The motion said the commission lacked any authority under AB5 to make decisions or findings on drivers’ employment status. Instead, that authority rests with courts, it said, referring to a misclassification lawsuit against Uber and Lyft by the state attorney general and city attorneys.
Moreover, the memo was written by a single commissioner, who “lacks authority to resolve a contested issue of substantive law,” the companies wrote. Only the full commission could determine that, they said, and that would require hearings, public input and a formal board vote. The companies said they have a right to present their own “substantial evidence” about why they believe AB5 does not apply to them.
Moreover, they said, the commission already waived its oversight about driver status. In 2013 it wrote that it would not “meddle in their business model by forcing TNCs to designate each driver an employee or contractor.”
The commission did not reply to requests for comment on the companies’ motion. Before the filing was submitted, spokeswoman Terrie Prosper said in a email that it “expects all carriers to comply with the workers’ compensation insurance requirements and will determine a course of action if and when it discovers that a (ride-hailing company) is out of compliance with those requirements.”
“Because AB5 deems (ride-hail) drivers to be employees, the (agency) must ensure that (the companies) comply with those requirements applicable to employees,” Prosper said in an earlier email.
Uber and Lyft both said their focus is on the ballot measure which would keep drivers as independent contractors while entitling them to some benefits and earnings guarantees.
“In the meantime, we are seeking further clarification from the (commission) around their flawed presumptions,” Lyft spokeswoman Julie Wood said in an email.


investmentwatchblog--2020-07-02--An #LA cop has been filmed trying to pepper spray a driver accused of speeding – only for his attemp

An # LA cop has been filmed trying to pepper spray a driver accused of speeding – only for his @ @ @ @ @ failure .
In a follow-up video , driver # JoshSude says he got out of @ @ @ @ @ went for his taser , and was issued with a speeding ticket .
pic.twitter.com/q8aQXNaplD

An #LA cop has been filmed trying to pepper spray a driver accused of speeding – only for his attempt to end in embarrassing failure. In a follow-up video, driver #JoshSude says he got out of the car when the officer went for his taser, and was issued with a speeding ticket. pic.twitter.com/q8aQXNaplD
— RT (@RT_com) July 1, 2020


investmentwatchblog--2020-07-02--Moody’s Turns Bearish On Oil Demand Growth

Billions of people spent the last few months in a lockdown of some form or another with travel bans or severe restrictions in place .
Some warn that this will be our new normal .
And this new normal could accelerate a shift away from hydrocarbons as the single most popular source of energy .
“ COVID-19 lockdown experience of reduced commuting and business travel , alongside better air quality and family time , may deliver lasting changes in energy consumption , ” Moody ’ s said in a recent report .
These changes , the rating agency went on @ @ @ @ @ @ @ economic recovery to depress energy demand , both in the business world and among households .
As demand for oil falls , Moody ’ s said , slower economic growth , increased use of alternative fuels for transportation , electric vehicles , and better fuel efficiency will add their own weight on oil demand .
And as new behavioral patterns become permanent , this weight on oil demand will also become permanent .
It is still early days , however .
Nobody knows really how much people will change their traveling and commuting @ @ @ @ @ @ @ very much in full swing—and how much oil demand will be permanently lost .
But one thing is certain : with CO2 emissions on track to post an annual decline this year thanks to the lockdowns , governments bent on building a cleaner energy future for their nations will seek to seize the opportunity to advance their agenda , striking when the iron ’ s hot .
Already the EU is trying to tie up its pandemic recovery financial aid package with green targets .
The package has yet to be agreed by @ @ @ @ @ @ @ deep , but there is a strong ambition to make Europe ’ s energy a lot greener than it is now .
But Europe is no longer a key market for oil demand .
It ’ s Asia that oil producers look to for robust demand and demand growth .
There is bad news for Asia , too .
Asian economies have been battered by the coronavirus to the extent that their economies will register almost no growth this year .
Economies in East Asia , for instance , are seen growing by @ @ @ @ @ @ @ the World Bank .
South Asian economies will not grow at all : for them , the WB sees a contraction of 2.7 percent .
Europe ’ s economy will also contract , of course , by a sizeable 4.7 percent–the same rate as Central Asia .
Asia was the key market for the global oil industry because of its fast and robust economic growth .
This growth won ’ t be showing up to the oil party this year , even if reports of China ramping up its oil consumption abound .
@ @ @ @ @ @ @ s oil import rate will slow during the third quarter in the latest sign yet that nothing lasts forever .
But things may already be past the point of no return for oil .
In fact , according to Boston Consulting Group , peak oil demand has been passed , and the coronavirus pandemic has only made this more obvious .
In a report , BCG noted how disproportionately hard oil and coal were hit in terms of demand , unlike renewable energy , the demand for which continued to grow throughout the @ @ @ @ @ @ @ of the demand loss for oil was because of the virtual halting of global passenger air traffic—a sector where renewables are not yet a viable alternative to fossil fuels , so they could not be affected by events .
But air transport was not the whole picture .
BCG , like Moody ’ s , cites the slow global economic recovery from the crisis as a fundamental factor in oil demand changes ahead .
But it also notes the green recovery plans of governments and similar scenarios of international energy authorities .
By @ @ @ @ @ @ @ fossil fuel demand , BCG analysts revealed that the only scenarios where oil demand recovered to growth mode were the ones that featured no green recovery measures at all .
These are hardly the scenarios that will play out .
But regardless of the scenario , it will be the transportation sector that will make or break future oil demand , according to both BCG and Moody ’ s .
“ Whether and to what extent oil demand recovers will depend largely on how quickly demand in the transportation sector improves , especially @ @ @ @ @ @ @ s analysts said in their report .
Moody ’ s , too , modeled the impact of Covid-19 on oil demand under two scenarios—a fast recovery and a slow one .
Under the first scenario—a fast economic recovery—some 2 million bpd of oil demand is to be displaced by EVs and improved fuel efficiency in ICE cars by 2025 .
Meanwhile , the total loss of demand for 2020 would be 3 million bpd .
Under the second scenario of slow economic recovery , 5 million bpd would be lost in oil demand @ @ @ @ @ @ @ be regained as a result of changed human behavioral patterns and continued slow economic growth .
It looks like under the most realistic scenarios , oil demand growth is all but doomed .
The only question seems to be just how quickly or slowly it will decline from this point on .
Large oil producers may want to revisit their long-term plans .

By Irina Slav
Billions of people spent the last few months in a lockdown of some form or another with travel bans or severe restrictions in place. Some warn that this will be our new normal. And this new normal could accelerate a shift away from hydrocarbons as the single most popular source of energy.
“COVID-19 lockdown experience of reduced commuting and business travel, alongside better air quality and family time, may deliver lasting changes in energy consumption,” Moody’s said in a recent report. These changes, the rating agency went on, will combine with slow and labored economic recovery to depress energy demand, both in the business world and among households.
As demand for oil falls, Moody’s said, slower economic growth, increased use of alternative fuels for transportation, electric vehicles, and better fuel efficiency will add their own weight on oil demand. And as new behavioral patterns become permanent, this weight on oil demand will also become permanent.
It is still early days, however. Nobody knows really how much people will change their traveling and commuting habits as a result of the pandemic—still very much in full swing—and how much oil demand will be permanently lost. But one thing is certain: with CO2 emissions on track to post an annual decline this year thanks to the lockdowns, governments bent on building a cleaner energy future for their nations will seek to seize the opportunity to advance their agenda, striking when the iron’s hot.
Already the EU is trying to tie up its pandemic recovery financial aid package with green targets. The package has yet to be agreed by all members, and internal divisions run deep, but there is a strong ambition to make Europe’s energy a lot greener than it is now. But Europe is no longer a key market for oil demand. It’s Asia that oil producers look to for robust demand and demand growth.
There is bad news for Asia, too. Asian economies have been battered by the coronavirus to the extent that their economies will register almost no growth this year. Economies in East Asia, for instance, are seen growing by a meager 0.5 percent, according to the World Bank. South Asian economies will not grow at all: for them, the WB sees a contraction of 2.7 percent.
Europe’s economy will also contract, of course, by a sizeable 4.7 percent–the same rate as Central Asia.
Asia was the key market for the global oil industry because of its fast and robust economic growth. This growth won’t be showing up to the oil party this year, even if reports of China ramping up its oil consumption abound. Already there are expectations that China’s oil import rate will slow during the third quarter in the latest sign yet that nothing lasts forever.
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But things may already be past the point of no return for oil. In fact, according to Boston Consulting Group, peak oil demand has been passed, and the coronavirus pandemic has only made this more obvious.
In a report, BCG noted how disproportionately hard oil and coal were hit in terms of demand, unlike renewable energy, the demand for which continued to grow throughout the lockdowns. Of course, a lot of the demand loss for oil was because of the virtual halting of global passenger air traffic—a sector where renewables are not yet a viable alternative to fossil fuels, so they could not be affected by events. But air transport was not the whole picture.
BCG, like Moody’s, cites the slow global economic recovery from the crisis as a fundamental factor in oil demand changes ahead. But it also notes the green recovery plans of governments and similar scenarios of international energy authorities. By modeling the impact of the pandemic on fossil fuel demand, BCG analysts revealed that the only scenarios where oil demand recovered to growth mode were the ones that featured no green recovery measures at all.
These are hardly the scenarios that will play out. But regardless of the scenario, it will be the transportation sector that will make or break future oil demand, according to both BCG and Moody’s.
“Whether and to what extent oil demand recovers will depend largely on how quickly demand in the transportation sector improves, especially in China,” the group’s analysts said in their report.
Moody’s, too, modeled the impact of Covid-19 on oil demand under two scenarios—a fast recovery and a slow one. Under the first scenario—a fast economic recovery—some 2 million bpd of oil demand is to be displaced by EVs and improved fuel efficiency in ICE cars by 2025.
Meanwhile, the total loss of demand for 2020 would be 3 million bpd. Under the second scenario of slow economic recovery, 5 million bpd would be lost in oil demand this year, and may well never be regained as a result of changed human behavioral patterns and continued slow economic growth.
It looks like under the most realistic scenarios, oil demand growth is all but doomed. The only question seems to be just how quickly or slowly it will decline from this point on. Large oil producers may want to revisit their long-term plans.
By Irina Slav for Oilprice.com


investmentwatchblog--2020-07-02--Hundreds arrested as police crack phone messaging service used by organised criminals

“ We have been able to hit the most senior levels of organised crime where it hurts most – getting @ @ @ @ @ cash , stopping their distribution networks in a way that I have literally never seen @ @ @ @ @ arrested in ‘ biggest ever ’ UK operation against organised crime after encrypted phone network @

“We have been able to hit the most senior levels of organised crime where it hurts most – getting people arrested, seizing their cash, stopping their distribution networks in a way that I have literally never seen before.”
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More than 700 arrested in ‘biggest ever’ UK operation against organised crime after encrypted phone network cracked


investmentwatchblog--2020-07-02--Hillary Clinton is running a shadow campaign: Change My Mind

I ’ ve been laughing off people saying Hillary is going to replace Joe Biden and join the race last minute .
I ’ m still not completely convinced .
However , as we get closer to November , she ’ s becoming more and more visible as Biden largely stays locked in the basement… I think there ’ s a good chance that Biden picks her as VP and then he either A ) drops out of the race and she replaces him or B ) He resigns if elected ( fat chance after the debates ) or C @ @ @ @ @ @ @ of getting her in the race This way , supposedly “ harmless ” Joe Biden stays the focus of the race , Hillary gets zero scrutiny for 90 % of the race , the Fake News Industrial Complex throttles the fake polls and fake news to demoralize conservatives and make moderates/undecided/independents look elsewhere , and then … BOOM swap Hillary Clinton in before anyone has the chance to really evaluate what just happened .
Seems plausible to me .
Thoughts ?
?
Criticize my theory all you want !
I wan na hear @ @ @ @ @

by muy_libre
Let me clarify:
I’ve been laughing off people saying Hillary is going to replace Joe Biden and join the race last minute. I’m still not completely convinced. However, as we get closer to November, she’s becoming more and more visible as Biden largely stays locked in the basement…
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I think there’s a good chance that Biden picks her as VP and then he either A) drops out of the race and she replaces him or B) He resigns if elected (fat chance after the debates) or C) some other undetermined and corrupt method of getting her in the race
This way, supposedly “harmless” Joe Biden stays the focus of the race, Hillary gets zero scrutiny for 90% of the race, the Fake News Industrial Complex throttles the fake polls and fake news to demoralize conservatives and make moderates/undecided/independents look elsewhere, and then … BOOM swap Hillary Clinton in before anyone has the chance to really evaluate what just happened.
Seems plausible to me. Thoughts?? Criticize my theory all you want! I wanna hear everyone’s opinions.


investmentwatchblog--2020-07-02--Florida Sheriff solves the “DEFUND THE POLICE” problem. Says he’ll DEPUTIZE all law abiding gun owne

Florida Sheriff solves the “DEFUND THE POLICE” problem. Says he’ll DEPUTIZE all law abiding gun owners.

“ If we can ’ t handle you , I ’ ll exercise the pow ” er and authority as @ @ @ @ @ ’ ll make special deputies of every lawful gun owner in this county , ” @ @ @ @ @ said .
“ You ’ ve been warned .
”

“If we can’t handle you, I’ll exercise the pow”er and authority as the sheriff, and I’ll make special deputies of every lawful gun owner in this county,” Clay County Sheriff Darryl Daniels said. “You’ve been warned.”
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investmentwatchblog--2020-07-02--European Stocks – “Lots of Optimism”

European Stocks – “Lots of Optimism”

Does the optimism towards European stocks point to a return of the bull ?
See the technical evidence to get @ @ @ @ @ for what ’ s really going on in Europe inside the new European Financial Forecast @ @

Does the optimism towards European stocks point to a return of the bull? See the technical evidence to get a “clear picture” for what’s really going on in Europe inside the new European Financial Forecast. ow.ly/pk3a50Aonxq
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investmentwatchblog--2020-07-02--The Greatest Upcoming Disaster in History and They Don’t Want You to Know

Massive flooding is currently taking place in China .
The once vaunted Three Gorges Dam may not survive the rainy @ @ @ @ @ to an increasing number of Chinese experts .
And yet , you have seen nothing @ @ @ @ @ media .
Why ?
Should it happen , this will be the greatest disaster in @ @ @ @ @ River runs through cities in which 400-600 million people live .
66 nuclear power plants @ @ @ @ @ massive floods that will only increase and could turn into giant tidal waves should the @ @ @ @ @ was built by Li Peng , the so-called butcher of Tiananmen Square .
It used @ @ @ @ @ improper welding and poor design .
In 1992 when construction started , Chinese technical and @ @ @ @ @ beginning stages .
Now they know better , but it ’ s too late .
@ @ @ @ @ have been described as frightened to death every day they work there .
Why haven @ @ @ @ @ ?
Why are they hiding this ?
You be the judge !

from Financial Survival Network
Massive flooding is currently taking place in China. The once vaunted Three Gorges Dam may not survive the rainy season, at least according to an increasing number of Chinese experts. And yet, you have seen nothing about it on the mainstream media. Why? Should it happen, this will be the greatest disaster in recorded history. The Yangtze River runs through cities in which 400-600 million people live. 66 nuclear power plants are in the path of massive floods that will only increase and could turn into giant tidal waves should the dam collapses.
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Three Gorges was built by Li Peng, the so-called butcher of Tiananmen Square. It used substandard steel and concrete, improper welding and poor design. In 1992 when construction started, Chinese technical and engineering prowess were in their beginning stages. Now they know better, but it’s too late. The dam’s workers have been described as frightened to death every day they work there. Why haven’t you been told? Why are they hiding this?
You be the judge!


investmentwatchblog--2020-07-02--The Fed Just Picked the “Big Guys” (Again) Over Individuals

In a recent disclosure to Congress , the Fed revealed that it just purchased $ 429 million in bonds from 86 corporations .
They did this through something called a Secondary Market Corporate Credit Facility ( SMCCF ) .
Buried on the Fed ’ s website , the press release explains the intention behind this purchase of bonds : According to Agora ’ s 5-Minute Forecast , the Fed also plans to purchase an additional $ 320 million of corporate bonds in the near future .
If you read the bolded phrase above from the Fed ’ s press release @ @ @ @ @ @ @ use this as an opportunity to help the “ little guy ” weather the recent economic storm .
But the “ broad , diversified market index ” that the Fed claims it ’ s rescuing doesn ’ t appear that broad… or that diversified .
The list includes giants like AT & T , Walgreens , Microsoft , Pfizer , Apple , Walmart , Comcast , Ford , Boeing , Cisco and Visa .
It goes without saying that these behemoths can weather out the storm while the smaller corporations struggle and lay @ @ @ @ @ @ @ to Make Sure the “ Big Guys ” Keep Winning The same edition of Agora ’ s 5-Minute Forecast sums up another example of a confused Fed : As the Fed usually does , they stack the cards in favor of the big guys .
Wolf Richter reinforces this line of thinking : Adds Richter , “ This includes several junk-bond focused ETFs , but the amounts are small.
” Here ’ s his breakdown of the risk : It seems pretty risky for the Fed to invest in junk debt at that @ @ @ @ @ @ @ big guys ” afloat .
This risky activity also raises another fairly pressing question… Why is the Fed Propping Up Companies that Can Help Themselves ?
In a recent CNBC article , Kathy Jones , director of fixed income at Charles Schwab , commented on the Fed ’ s recent corporate bond buying spree : Later in the same article , Jones added , “ I do think it ’ s a moral hazard… I think it ’ s something they ’ re going to have to deal with when things settle down @ @ @ @ @ @ @ committed money in ways that didn ’ t make sense and didn ’ t help the average Joe.
” Taken at face value , the Fed ’ s intentions seem good .
But upon further scrutiny , like Jones hinted at , there should be serious questions as to the ramifications of their actions .
If you are going to have to “ pay that price ” , as Wolf Richter alluded to above , then you should consider taking control of your situation , and hedge your bets starting now .
Forget @ @ @ @ @ @ @ Protect Your Own Future Who knows what the Fed will do next to mitigate the uncertainty ?
Don ’ t wait for them to figure things out .
Instead , you need to prepare yourself in case their wild interventions start making things worse .
One thing you can start doing is make your savings more resilient in case the market goes sideways .
Consider adding precious metals like gold and silver to your asset mix as one way to protect yourself against the Fed ’ s “ good ” intentions .

Photo by Flickr.com | CC BY | Photoshopped
From Birch Gold Group
In a recent disclosure to Congress, the Fed revealed that it just purchased $429 million in bonds from 86 corporations.
They did this through something called a Secondary Market Corporate Credit Facility (SMCCF). Buried on the Fed’s website, the press release explains the intention behind this purchase of bonds:
The SMCCF will purchase corporate bonds to create a corporate bond portfolio that is based on a broad, diversified market index of U.S. corporate bonds. This index is made up of all the bonds in the secondary market that have been issued by U.S. companies that satisfy the facility’s minimum rating, maximum maturity, and other criteria.
According to Agora’s 5-Minute Forecast, the Fed also plans to purchase an additional $320 million of corporate bonds in the near future.
If you read the bolded phrase above from the Fed’s press release, you might think they intend to use this as an opportunity to help the “little guy” weather the recent economic storm.
But the “broad, diversified market index” that the Fed claims it’s rescuing doesn’t appear that broad… or that diversified.
The list includes giants like AT&T, Walgreens, Microsoft, Pfizer, Apple, Walmart, Comcast, Ford, Boeing, Cisco and Visa.
It goes without saying that these behemoths can weather out the storm while the smaller corporations struggle and lay off employees.
Fed Doing Its Best to Make Sure the “Big Guys” Keep Winning
The same edition of Agora’s 5-Minute Forecast sums up another example of a confused Fed:
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The fact the Fed is buying corporate bonds at all signals favoritism toward big existing players — indebted lumbering behemoths that can’t innovate. It’s not as if the Fed is going to take the largesse it creates from thin air and spread it around to a plucky but capital-starved startup, right?
As the Fed usually does, they stack the cards in favor of the big guys. Wolf Richter reinforces this line of thinking:
It also creates the notion that the Fed will always bailout asset holders, and that there is never a price to pay for any downturns, and that only people who work for a living have to pay that price.
Adds Richter, “This includes several junk-bond focused ETFs, but the amounts are small.” Here’s his breakdown of the risk:
The categories AAA, AA, and A account for 48.07% of the bonds. The category of BBB, the lowest investment-grade category, accounts for 48.31%.
It seems pretty risky for the Fed to invest in junk debt at that scale, trying to keep the “big guys” afloat.
This risky activity also raises another fairly pressing question…
Why is the Fed Propping Up Companies that Can Help Themselves?
In a recent CNBC article, Kathy Jones, director of fixed income at Charles Schwab, commented on the Fed’s recent corporate bond buying spree:
You wouldn’t think they would need support from the Fed… The reasoning I guess makes sense. But when you look at the outcome, you scratch your head and wonder whether this is where we need the money to go.
Later in the same article, Jones added, “I do think it’s a moral hazard… I think it’s something they’re going to have to deal with when things settle down. There will be accusations that they committed money in ways that didn’t make sense and didn’t help the average Joe.”
Taken at face value, the Fed’s intentions seem good. But upon further scrutiny, like Jones hinted at, there should be serious questions as to the ramifications of their actions.
If you are going to have to “pay that price”, as Wolf Richter alluded to above, then you should consider taking control of your situation, and hedge your bets starting now.
Forget About the “Confused” Fed and Protect Your Own Future
Who knows what the Fed will do next to mitigate the uncertainty? Don’t wait for them to figure things out. Instead, you need to prepare yourself in case their wild interventions start making things worse.
One thing you can start doing is make your savings more resilient in case the market goes sideways. Consider adding precious metals like gold and silver to your asset mix as one way to protect yourself against the Fed’s “good” intentions.


investmentwatchblog--2020-07-02--Chaz Is moving to the Big Apple

Chaz Is moving to the Big Apple

Any governor/Mayor of a state that allows chaos , should lose power and POTUS makes the EO to come in @ @ @ @ @ in an hour .
Then the state officials lose their jobs , never to be @ @ @ @ @

Any governor/Mayor of a state that allows chaos, should lose power and POTUS makes the EO to come in and take care of it in an hour. Then the state officials lose their jobs, never to be allowed in office again.
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LL