Asset protection

Technically Speaking: Risk Limits Hit, When Too Little Is Too Much

For the last several months, we have been issuing repeated warnings about the market. While such comments are often mistaken for “being bearish,” we have often stated it is our process of managing “risk” which is most important.

Beginning in mid-January, we began taking profits out of our portfolios and reducing risk. To wit:

“On Friday, we began the orderly process of reducing exposure in our portfolios to take in profits, reduce portfolio risk, and raise cash levels.”

Importantly, we did not “sell everything” and go to cash.

Since then, we took profits and rebalanced risk again in late January and early February as well.

Our clients, their families, their financial and emotional “well being,” rest in our hands. We take that responsibility very seriously, and work closely with our clients to ensure that not only are they financially successful, but they are emotionally stable in the process….CLICK for complete article

Bank of Canada pumps $7B, expands bond buy-backs to ease economic concerns

The Bank of Canada prepared to increase the cash it pumps into the financial system and Finance Minister Bill Morneau stressed the need for fiscal measures to manage the impact of COVID-19 as official Ottawa responded to another market plunge.

Thursday saw sharp drops on North American stock markets: 12.34 per cent on the S&P/TSX composite index, and a 9.99 per cent drop on the Dow Jones industrial average — its worst day since 1987.

The Bank of Canada responded with a…Click for full article.

Avoiding Financially Self-Destructive Impulses

Humans are hard-wired to run from danger, paradoxically making the emotion of Fear the biggest impediment to long-term investor success. Resisting Fear-based investment actions in the midst of panic is the key. Click the link below to read the March 9, 2020 “Views from the Crowsnest” newsletter from Integrated Wealth Management in Calgary.

March 2020 Edition of From the Crow’s Nest

This Is What Happened After One Chinese Company Rushed To Reopen After The Corona-Chaos

Earlier today, Rabobank’s Michael Every laid out succinctly the dilemma facing Beijing, when he said that “China appears to have perhaps decided that the economic damage being wrought by a demand collapse and supply-chain shutdown is just too much to bear.” As reported overnight, Xi Jinping stated that China will meet its economic goals AND win the battle vs. the virus, and Beijing is urging firms to increase output even as the capital itself is largely locked down – and other cities are physically locking people into their homes. That’s as even the US admits that the Phase One trade deal will be slow off the market due to the virus impact.

Of course, China is no stranger to Double Think: as Every put it, “a freely-floating, controlled currency; market-determined, state-directed interest rates; and free-trade mercantilism. Yet increase economic activity from here and the virus will spread, both internally and globally. Concentrate on just the virus, and the local and global economic impact will be enormous.”

That, in a nutshell, was how Rabobank saw China’s “dialectic that has no comfortable Fichtean synthesis to the thesis and antithesis” and concluded that “things are going to get nasty for economies and markets – especially with official WHO word that a vaccine is 18-months away.”

Today, two days after China officially returned to work, we got the first confirmation of just how catastrophic Beijing’s order to local enterprises and businesses to rush back reboot the economy could be, when Jennifer Zeng reported that a company in Suzhou reopened, and immediately at least one CoVid2019 case found. As a result, the company’s 200+ employees couldn’t go home and were immediately placed under quarantine. At least the workers managed to “organize” quilts for themselves….CLICK for complete article

The Lucrative New Tech Hijacking Your Privacy

We’ve come a long way from being able to superimpose Trump’s hair on our own heads. We’ve also come a long way from wearing masks and sunglasses in public for reasons of fashion or healthcare. Now, it’s about dodging facial recognition.

Protesters in Hong Kong are doing exactly this to avoid facial recognition technologies, with some even employing lasers that cameras can’t process or recognize.  But it’s not just amid mass protests in Hong Kong that everyone should be worried about facial recognition technology. It’s used everywhere from airports and shopping centers to all that lies in between.

Proponents hail the crime-solving and potential crime-prevention benefits, but the sacrifice is great.

Privacy advocates say it could lead to automatically identifying and tracking anyone, not just criminals, and it can be used for violations of privacy….CLICK for complete article

It’s Time to Pay Attention to Commercial & Industrial Loans

Commercial and industrial loans (C&I loans) at all commercial banks fell to $2.33 trillion as of January 1, the lowest since March 2019, according to Federal Reserve data on commercial banks, released on Friday. C&I loans peaked in August last year at $2.38 trillion and have since fallen 1.7%. This has occurred despite three rate cuts by the Fed over the period.

C&I loans are used by businesses for working capital or to finance capital expenditures. Working capital loans are usually collateralized by receivables and inventories. Capital expenditure loans are collateralized by equipment and the like.

These loans are often credit lines with floating interest rates – which are very low and very appealing for borrowers. And banks are eager to extend these loans and are offering them aggressively, even to my little company. So there is no issue at this side of the equation…CLICK for complete article