It is now inflate or die time for the Federal Reserve. A hard default is not an option and it is obvious which path the government has chosen; a soft default. This means that they will inflate the US debt away. In my opinion, before the Federal Reserve ever attempts to raise interest rates, they will begin to reduce asset purchases.
So how have people been spending their stimulus checks? While some are paying off credit card or school debt, others, like Robinhood traders, are placing their money in the stock market. In fact, investors poured in a record $56.8 billion as the stimulus checks arrived.
There is a lot of discussion about getting rid of fossil fuels including natural gas, but little conversation on the reality of the gap that would be created in power generation if that were to happen.
At the end of the day, the only thing standing between your portfolio and catastrophic loss is your own caution and proper risk management. I know it is not the most exciting part of investing. But, there is zero doubt in my mind that it is the most important.
Since natural gas provides about one half of the carbon footprint of crude oil, it makes sense that it is the logical source to bridge into a transition to renewable energy.
A good supply chain management system is essential to any company or industry. Disruptions in the supply chain, including natural disasters and pandemics, can have negative effects lasting decades after the fact.
‘Strategy is hard — but it’s worth the effort. Execution is hard, but if the strategy is wrong, at best, it’s not worth the effort.’
The savings rate, which is the percentage of personal income consumers save rather than spend, is at the highest it has been in years. The high savings rate is a reflection of the American peoples’ fear because they do not know the direction the economy is going to take.
Chesapeake has been using financial engineering for the last 8-9 years to try to solve their financial problems. They are approximately 9 billions dollars in debt, and they have to continue to pay interest payments on the long term bond debt as well as other debt that they hold.
COVID-19 has shown the fragile nature of the United States financial system, as well as other countries around the world.