Economic Outlook

Technically Speaking: 4-Risks To The Bullish View

When I was growing up, my father, probably much like yours, had pearls of wisdom that he would drop along the way. It wasn’t until much later in life that I learned that such knowledge did not come from books but through experience. One of my favorite pieces of “wisdom” was:

“A sure-fire ‘no lose’ proposition is doing exactly the opposite of whatever ‘no lose’ proposition is being proposed.”

Of course, back then, he was mostly giving me “life advice” about not following along with my stupid-ass friends who were always up elbows deep in mischief.

However, that advice also holds true with the financial markets currently. As I have noted over the last couple of weeks (read this and this) the “bulls” certainly seem to regained control of the markets as new highs were reached on Monday. As I stated, between the Fed cutting rates, reigniting “not-QE,” and the President following our script of putting the “trade war” to rest, “what is there NOT to love if you are a bull.”

While we have begun to opportunistically increase our the equity exposures in our portfolios, we are cognizant there are currently several warning signs investors should consider before buying into the “bullish view.”

Here are four to consider….CLICK for complete article

Is The Internet Killing The Planet?

Beyond the painfully obvious plight of a planet addicted to fossil fuels, climate change has another bogeyman that few–with the possible exception of Keanu Reeves–would be willing to give up.

Yet, it’s responsible for a huge chunk of our global greenhouse gas emissions.

In fact, by 2025, it could be responsible for a staggering 20 percent of global electricity consumption and up to 5.5 percent of all carbon emissions.

And you’re doing it right now.

That bogeyman is the Internet of Things (IoT) and the tsunami of data it must power.

Academics are challenging the notion that we can considerably reduce carbon emissions by increasing efficiency and cutting down on waste.

In fact, they warn that the internet explosion and increasing connectivity via the IoT and smart devices could increase global emissions by 3.5 percent by 2020 and up to 14 percent by 2040.

In an update to a 2016 peer-reviewed study, Swedish researcher Anders Andrae says the ICT industry’s power demand is likely to increase from 200-300 terawatt hours (TWh) of electricity a year in 2017, to 1,200-3,000TWh by 2025…CLICK for complete article

Business Investment is Down With Unexpected Drop in Durable Goods Orders

New orders for durable goods, designed to last more than three years, fell -1.1% in September, indicating softening business investment. This represents a big miss in orders which were forecast at a -0.2% drop. Thursday’s report from the Commerce Department indicates an ongoing trend in business spending, with the decline is likely a result of the ongoing trade war between China and the United States.

The latest Commerce Department report indicates that business investment continues to soften due to uncertainty around the trade war. Businesses are planning to spend less on equipment, indicated by a -0.5% drop in non-defense capital goods excluding aircraft (core capital goods orders).  Demand for transportation equipment, motor vehicle parts, and computer and electronic products fell last month…CLICK for complete article

Who Doesn’t See the China Threat at This Point?

Daryl Morey had no idea the tweet he published on Oct. 4 would ignite a firestorm that continues to rage.

But that’s exactly what happened.

Morey is the general manager of the Houston Rockets, in one of the world’s most popular sports leagues: the National Basketball Association (NBA).

The tweet that Morey sent out into the social media world was simple. It contained none of his own typed words; it merely displayed an image.

That simple image, with the words “Fight For Freedom, Stand With Hong Kong,” ignited a firestorm and called attention to a dynamic that had been working quietly beneath the surface.

And that dynamic is how China has been positioning itself for economic and cultural dominance.

China presents a vast market that has many U.S. companies wishing for unrestricted access. The NBA is hardly alone in this regard. But few Western corporations have so solidly joined themselves at the hip with China the way the NBA has.

This is why the American people were treated to the startling sight of prominent NBA players and coaches stuttering and mumbling their way through interviews when asked to comment on China’s atrocious human rights record—something that has taken center stage again recently because of the Hong Kong democracy protests, as well as a video of hundreds of blindfolded Uyghurs being shipped off to a detention facility….CLICK for complete article

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.

Is The Pot Stock Boom Over Already?

With Mexico on the brink of legalizing recreational marijuana, you would think it would be great news for the cannabis industry, but stocks are getting crushed, and some of the biggest industry darlings are even flirting with penny stock status at this point.

This industry is forecast for growth that could generate some $200 billion in annual sales by 2030. So what gives?

The general consensus is that cannabis–at large–is a great long-term bet, but….CLICK for complete article