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Big Fat Idea – US Single Family Home Developments

Justin Smith, president of Hawkeye Wealth joins Michael to share how Canadian investors can participate and profit in large scale housing sub-division development in the US. For more information on these investments CLICK HERE.

Why Banning Fossil Fuel Investment Is A Huge Mistake

Activist global warming strategies have now caused the European Investment Bank to ban its fossil fuel project funding. After more than a year of internal and external lobbying by several EU member states and an ever-growing list of activist NGO and pressure groups, the EIB has decided to cut its financial support for all new fossil fuel projects by 2021. It will also support €1 trillion of investments in climate action and environmental sustainability. This is meant to force European countries to put an end to new gas-fueled power projects and keep in line with the Paris Agreements and EU CO2 emission targets. EIB VP Andrew McDowell stated to the press that the EIB’s new energy lending policy, seen as a landmark decision, has been approved with “overwhelming” support. He reiterated that it will bar investments or financing for most fossil fuel projects, including those that employ the traditional use of natural gas.

There is still a small loophole for fossil fuel projects, as the EIB funding will still be available for projects that can show they can produce one kilowatt-hour of energy while emitting less than 250g of carbon dioxide. New technologies could therefore be the savior in the end for traditional gas-burning power plants.

The significance of this decision by the EIB cannot be understated. As a major financial institution, a wide range of energy-related projects inside and outside of the EU, such as gas pipeline projects in Central Asia, Turkey and the recent discussions on East Med offshore gas projects, are now being endangered. While various Green Parties and environmental NGOs are celebrating this move as a major victory, it is a victory that comes with some real risks. The decision, which was largely inevitable after that EU finance ministers unanimously agreed to initiate stricter measures to combat climate change, will put more pressure on all parties to phase out gas, oil and coal projects…CLICK for complete article

Which Secular Bull Market Is It – 1950’s or 1920’s?

“Despite concerns in the third quarter, bears never had a strong argument for why stocks were overvalued and the major indexes simply traded sideways for much of the last six months, wrote Robert Sluymer, technical strategist at Fundstrat Global Advisors.

We ‘continue to view the market cycle as being a normal pause in an ongoing secular bull market similar to what developed in 2016, 2011 and the ‘cycle’ pullbacks that developed during the secular bull markets in the 50s-60s and 80s-90s.”

It is an interesting point. The current bull market certainly seems unstoppable, but the question that must be answered, fundamentally, is if this is indeed a “secular bull market,” and if so, “where are we” within that cycle.

What is a “secular market?”

“A secular market trend is a long-term trend which lasts 5 to 25 years and consists of a series of primary trends. A secular bear market consists of smaller bull markets and larger bear markets; a secular bull market consists of larger bull markets and smaller bear markets.”

In a “secular bull’ market, the prevailing trend is “bullish” or upward-moving. In a “secular bear” the market tends to trend sideways with severe drawdowns and sharp rallies…CLICK for complete article

Quote of the Week, Shocking Stat & The Goofy Award


Quote of the Week

Terry Glavin spells out the frightening spectacles of Chinese nationals intimidating Canadians in order to silence them over Hong Kong push for freedom. Hint – it’s scary.

Shocking Stat of the Week

Do you even know what a trillion is – let alone $255 trillion – because that’s how big global debate has grown. And we’re idiots to think there are no consequences.

Goofy

The reaction to Don Cherry’s infamous “you people” has been swift and punitive by people who have never mispoke in their lives – never made a mistake – and don’t show any sign of generosity of spirit.

Is It Government’s Goal To Put People Out of Business?

Because they are doing it thanks to a combination of ignorance, cluelessness, ideology and a refusal to be aware of changes to the competitive environment and what the other two levels of government are doing.

5 Warning Signs of Market ‘Euphoria’

The U.S. stock market, as measured by the S&P 500 Index, is up 23.4% this year and recently reached a new record high, but five signs of investor euphoria suggest growing risks, according to Lori Calvasina, head of U.S. equity strategy at RBC Capital Markets. She endorses RBC’s year-end 2019 target of 2,950 for the index, 4.7% below the Nov. 12 close, according to a recent story in Barron’s.

Calvasina discussed these five signs in a note to clients:

  1. Asset managers have bullish positions in U.S. equity futures similar to the highs before the financial crisis, risking a big negative reaction to bad news.
  2. U.S. stock valuations are near their late 2017 highs.
  3. Earnings forecasts for 2020 are too optimistic.
  4. Stock prices anticipate a phase one U.S.-China trade agreement, but business confidence remains seriously damaged.
  5. The S&P 500 has risen nearly 32% above its Dec. 2018 low, similar to previous rallies off lows in 2010, 2011 and 2016 that paused.

Significance for Investors

“We haven’t learned anything in the current reporting season that justifies euphoric positioning and peak valuations,” Calvasina wrote. “Reporting season has been better than feared, but the overall tone around demand/macro, tariffs and cost savings all sounds very familiar–it’s what companies have been saying all year,” she added.

On the other hand, money market fund assets are $3.4 trillion, a 10-year high and still rising, undercutting the “euphoric positioning” narrative. Several strategists see this as a bullish indicator, per The Wall Street Journal.

Calvasina predicts that a pause by the Fed in cutting interest rates limits the upside for equity valuations. If 2020 earnings disappoint, as she anticipates, stock prices should sink….CLICK for complete article