Economic Outlook

They Don’t Want You To See This Film

Vivian Krause is Canada’s best investigative journalist (Robert Fife and Terry Glavin honourable mentions).  Her tireless efforts churning through thousands of pages of US tax returns revealed the extent of US involvement in the opposition to Alberta oil and every proposed pipeline. Her new documentary Over A Barrel is a must see and you can do that for free until the end of the month.

Cash-Flow Zombie Netflix Extracts Another $2 Billion from Befuddled Investors

Having burned cash for 22 years and counting.

“Don’t get me wrong: there is still lots of money out there chasing these companies,” I said in my podcast on Sunday, naming Netflix as one of the perennially cash-flow negative companies – the “cash-burn machines” – that have to borrow huge amounts of money every year to make ends meet, and that still find eager investors to lend them this money. I said this, not knowing what Monday would bring. And sure enough, Monday brought an announcement by Netflix that it would borrow another $2 billion via another bond sale – its second this year, after having already borrowed $2.2 billion in April.

These proposed senior unsecured notes, which will mature in 2030, will be sold in US dollars and euros to institutional investors, not the public. In other words, these bonds go into pension funds, insurance funds, bond funds, junk bond funds, and the like — and you may own a slice of them whether you want to or not…CLICK for complete article

Social Media Influencers, Dream Job Or Billion-Dollar Fraud?

One of the biggest money-makers in today’s job market requires no real skills, no degree, and no experience.  Baby Boomers are necessarily appalled, and even some of the older Millennials.

The ‘job’ is social media influencer, and it’s raking in tons of money for those lucky enough to jump on the bandwagon at the right time and with the right angle.

Earlier this year, one Florida-based social media influencer, Jessy Taylor, posted a tearful video lamenting the prospect of working a 9-to-5 job after her 100,000-follower Instagram account was deleted.

Having previously worked at McDonald’s, Taylor said she wasn’t cut out for a 9-to-5 job because she had no job qualifications and brought nothing of note to the table–other than fast food….CLICK for complete article

Cramer: Is FAAMG The New FAANG?

Netflix Inc inclusion in the prestigious “FAANG” acronym should come to an end, with its replacement being the “far less episodic” Microsoft Corporation CNBC’s Jim Cramer said during Friday’s “Mad Money.”

Netflix reported a miss on “almost every key metric” in its recent third-quarter report, Cramer said.

Among the more concerning readouts: Netflix’s subscriber growth, which fell short of expectations for the second straight quarter, the CNBC host said.

Netflix’s stock has “lost its mojo,” and with the stock trading near $275 per share, there is more downside to be seen, he said.

Why It’s Important

Among the other stocks in the FAANG group, Cramer said social media company Facebook, Inc. is “very undervalued” and belongs in the group of elite stocks so long as the U.S. government doesn’t dictate that the company has to spin off Instagram or WhatsApp….CLICK for complete article

Canadian Variable Mortgage Rates Are Rising Very, Very Fast

Despite rock bottom borrowing rates, some Canadian real estate buyers are paying more. Bank of Canada (BoC) numbers show variable rates on residential mortgages made a big jump. Even with borrowing rates generally falling, variable interest mortgages are at a six year high.

Variable Rate Mortgages

Variable rate mortgages are when the borrower sees the interest rate fluctuate. Payments usually stay the same, but the amount that goes towards interest fluctuates. If rates rise during the term, the borrower pays more interest, and less principal. If rates fall during the term, borrowers pay less interest, and more principal. At the end of the term, depending on rates, you may have a bigger or smaller mortgage balance than expected.

Uninsured Variable Rates Are Up Over 26%

Uninsured rates made a very large increase over the past year. The rate paid on new uninsured residential mortgages hit 3.74% in July, up 1.63% from a month before. The rate is now 26.35% higher than it was during the same month last year. Rates are the highest they’ve been in at least 6 years, and likely beats that record for some time….CLICK for complete article

Live Post-Show Webinar – 10 Essential Principles for Trading the Stock Market

Live with Tyler Bollhorn on Saturday October 19th at 10:15am Pacific time

Trading stocks is simple, but not easy. During this one hour free webinar, founder Tyler Bollhorn will take you through 10 simple principles to guide your stock trading. Whether you are a short term active trader or a long term investor in stocks, these principles will help you achieve better returns and avoid painful losses.

CLICK HERE to register and reserve your space