FattyBull
FattyBull
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2022-10-03

Bear Market 2022: The Ultimate Guide for Investors

What does a bear market mean in 2022? Lower share prices, but still an opportunity to profit. During 2022, the two most popular terms among investors were "inflation" and "recession". However, most of the attention given to these indicators of economic turmoil seems to revolve around one common theme: the bear market. Generally considered to be a harbinger of bad economic conditions, a bear market tends to scare most investors. And while a bear market often means a significant drop in stock prices, it doesn't necessarily mean a recession is imminent. In this guide, we'll break down exactly what a bear market is, what it means for the markets, and what investors can do to protect their portfolios right now. We'll also cover the types of investments that often hold up best when a bear market
Bear Market 2022: The Ultimate Guide for Investors
avatarFattyBull
2022-09-21

Lithium: The secret behind a game-changer

Far from the spotlight of $AAPL (Apple) or $AMZN Amazon.com Inc), there is an industry that is quietly gaining its way to the next industrial leader.Why lithium ($LIT) will be so important?• First a lithium-ion battery is a type of rechargeable battery already in widespread use thanks to smartphones and tablets.Recently it's gaining ground in the automotive industry and the upside for lithium is significant for the next decade. Let's look it in detail:- Lithium batterv is essential to the rise of electric vehicles (EVS) in an era where climate change will be a priority.- Lithium is core for renewable energy storage - key element in the energy independence from fossil fuels.- Joe Biden has just signed a $740 billion climate change, healthcare and tax 'Inflation Reduction Act' - in
Lithium: The secret behind a game-changer
avatarFattyBull
2022-10-07

What has happened?

Last night, the three major U.S. stock indexes fluctuated lower. As of the close, the Dow fell 1.15%, the Nasdaq fell 0.68%, and the S&P fell 1.02%. The yield on the 10-year U.S. Treasury bond rose 1.999% to close at 3.826%, a difference of about -44 basis points compared with the yield on the two-year Treasury bond. The VIX, the fear index, rose 6.9%. Brent crude closed up 1.21%. Spot gold closed down 0.22% at $1,712.74 an ounce. The dollar index remained high, closing at 112.28. The number of layoffs at challenger companies in the United States in September was 29,989, compared with the previous value of 20,485. U.S. employer layoffs rose 46% month-on-month in September and 68% year-over-year. September marked the fifth time so far in 2022 that the number of layoffs was higher than a
What has happened?
avatarFattyBull
2022-09-27
WILL WE SEE A NEW DECADE OF WARS AND ECONOMIC TURMOIL?"When goods are not allowed to cross borders, armies will." - Frédéric Bastiat# WHAT DOES BASTIAT MEAN?During times like those we have today, where the economy has huge problems, we often see wars breaking out. This especially goes for times of high electricity prices and higher unemployment, which we could see if we get deeper into a recession. Therefore, it might be a good idea to hedge your portfolio against those risks to not be affected by it, but how can you do this? Most hedges are applied by shorting or going long on inverse etfs. If you are not familiar with shorting futures or stocks that's no problem since you can just copy someone who can. Therefore, we want to introduce you to our portfolio today.* A PORTFOLIO WIT
avatarFattyBull
2022-09-20
What a ride these past few weeks have been.Markets were looking bullish through early August up until lerome Powell's speech at lackson Hole where he came across as very hawkish which sent markets downwards.In early September there was optimism around a low inflation reading for the month of August. The figure, reported on 13th September, came in at 8.3% - slightly above expectations which sent markets sharply downward once again.This week brings us another FOMC meeting where the Federal Reserve will discuss by how much they will raise rates by.Markets seem to be pricing in the worst case - a 1% [or 100 basis points] rate hike.Anything less than a 1% hike should be positive for markets.Markets are fearful. If they become what we view as overlv optimistic, then we will certainly consider he
avatarFattyBull
2022-10-06

The Bank of England shows the way to retreat

It is obvious that the decision of the central bank is behind the current sale of shares. At the same time, central banks have the option to stop this sale at any time. The fact that it is wanted by central banks is probably the worst sign of the entire crisis. The method of solving the crisis therefore depends on the will of the central bank. Of course, these are not all-powerful, but active but systemic decisions. At each meeting, the Fed chooses between stopping inflation or recession and falling stock indexes. So far, the Fed is clearly signaling that it has chosen inflation over recession. However, this decision is not forever and the Fed can change it at any time. And this change does not necessarily mean lowering interest rates, it can also take the form of foreign exchange interven
The Bank of England shows the way to retreat
avatarFattyBull
2022-09-26
Investors are feeling anything but good right now!This week had plenty of FED speakers and already FED member Bostic had an interview on Sunday and that probably helped yields move overnight when markets opened.On the Forexlive calendar they have 6 pencilled in for this week but there are more. For instance there are 3 additional ones today not on the calendar. In total think read there are about 20 appearances for the week scheduled.* * * * *10:00 am NY time (1400 GMT)Federal Reserve Bank of Boston President Susan Collins speaks on strengths and challenges in the national and regional economy12:00 noon NY time (1600 GMT)Federal Reserve Bank of Atlanta President Raphael Bostic participates in virtual Washington Post Live interview on causes and impact of income and wealth inequality in the
avatarFattyBull
2022-09-30

How far can the Fed go?

"What is important that will constrain how far the Fed can go is the extreme level of debt. At a record $83 trillion of public and private debt, if the Fed goes as much as what is priced in, we are talking about $330 billion being drained out of the economy for debt servicing charges or about 1.5% out of GDP." -Dave RosenbergWHAT IS THE QUOTE ABOUT?The quote above thematizes the FEDs current interest rate course. As you can see, the overall debt levels publicly, as well as privately are extremely high. This combined with interest rate hikes lead to a lot of financing issues. This mostly afflicts growth stocks, since they normally have a lot of debt and close to no earnings to pay their interest, but also close to every other stock, raising the question how far the FED can go in hiking inte
How far can the Fed go?
avatarFattyBull
2022-09-26
Harvard Invents a Solid-State Battery.Solid-state batteries are a promising technology, although technical problems must be solved before they can be manufactured at an industrial scale. A new type of solid-state battery pioneered by Adden Energy points to a leap in performance and reliability.The startup uses an exclusive technology license from Harvard's Office of Technology Development to develop solid-state battery systems for use in future electric vehicles. On the basis of lithium-metal technology, the battery can achieve charge rates as fast as three minutes with over 10,000 cycles in a lifetime. The coin-cell prototypes developed by Adden Energy for lab testing don't look like much now. Still, Adden wants to scale the battery up to a palm-sized pouch cell and even to a full-scale e
avatarFattyBull
2022-10-07
Last night, the three major U.S. stock indexes fluctuated lower. As of the close, the Dow fell 1.15%, the Nasdaq fell 0.68%, and the S&P fell 1.02%. The yield on the 10-year U.S. Treasury bond rose 1.999% to close at 3.826%, a difference of about -44 basis points compared with the yield on the two-year Treasury bond. The VIX, the fear index, rose 6.9%. Brent crude closed up 1.21%. Spot gold closed down 0.22% at $1,712.74 an ounce. The dollar index remained high, closing at 112.28. The number of layoffs at challenger companies in the United States in September was 29,989, compared with the previous value of 20,485. U.S. employer layoffs rose 46% month-on-month in September and 68% year-over-year. September marked the fifth time so far in 2022 that the number of layoffs was higher than a
avatarFattyBull
2022-10-14

How Inflation & Hikes Can Make You Rich

A closely watched measure of US consumer prices rose by more than forecast to a 40-year high in September, pressuring the Federal Reserve to raise interest rates even more aggressively to stamp out persistent inflation before it becomes entrenched. Inflation makes workers poorer (work more for less) and hikes make investors richer (make more with less). Central banks need to hike rates until demand destruction stops inflation.. After inflation cools down, central banks can pivot back to monetary easing and inflating assets. If you hold cashflow producing value stocks or have cash & hedges to buy the dips, you get richer. Trade safely 
How Inflation & Hikes Can Make You Rich
avatarFattyBull
2022-10-14
$DJIA(.DJI)$ U.S. stocks closed sharply higher Thursday in a head-spinning reversal, after investors decided that fresh evidence of high inflation wasn't as bad as it initially appeared. it was the first time that the Dow Jones Industrial Average both fell at least 500 points and rose at least 800 points in a single trading day. The whipsaw moves were reminiscent of the early stages of the Covid-19 pandemic, another time of deep uncertainty about the economic outlook. Trade safely
avatarFattyBull
2022-10-17

October market so far.

The market has been a turbulent one so far in October. Despite the Federal Reserve's best attempt to bring down prices, the data released just 2 days ago shows that inflation came in at a whopping 8.2 percent which was significantly higher than expected, it is a sign that things might continue getting worse with another substantial rate hike plans less than three weeks away. However, what's even more concerning isn't that people are now hoarding cash at the highest level in 10 years, but instead the fact that inflation is still not going away with the reality that an even stronger dollar could trigger the next crisis. With stock markets on a rollercoaster amid Federal Reserve rate hikes, recession fears, elevated inflation, and escalated tensions between Ukraine and Russia, investors will
October market so far.
avatarFattyBull
2022-09-30
Contraction continues The U.S. economy remained in a contraction in the second quarter, according to revised data from the federal government.The Commerce Department reported its third and final estimate of the second quarter Gross Domestic Product (GDP) showed a decline of 0.6%, the same as its second estimate in August and in line with economists' forecasts. That followed a drop of 1.6% in the first quarter. A popular rule of thumb is two consecutive quarters of negative GDP signals a recession, although many, including Fed Chair Jerome Powell, argue the U.S. is not in one right now.The report said the declines in GDP were mainly driven by decreases in private inventory investment, especially in retail, and losses in residential fixed investment (home buying) and government spending. Tho
avatarFattyBull
2022-10-03
TSLA (Tesla Motors, Inc.) hit the next record for deliveries in the past quarter - but at the same time missed even higher expectations from analysts. The company of tech billionaire Elon Musk brought 343,830 electric cars to buyers from July to September. The previous record was a good 310,000 in the first quarter of this year. Tesla is currently expanding its production, among other things, the capacities are being increased in the two new plants in Grünheide near Berlin and in Texas. Production thus reached almost 365,923 electric cars in the past quarter - mostly from the volume models 3 and Y. Analysts had expected 358,000 deliveries. In the announcement on Sunday, Tesla pointed out that it was difficult to secure transport capacities at a reasonable price, especially in the hot deliv
avatarFattyBull
2022-10-12

The Exact Signal for Stocks and Crypto to Recover

Jones expects the turning point for Treasury yields will help to usher in a massive rally for assets that have tumbled as inflation surged. Even cryptocurrencies like bitcoin $BTC will likely benefit, he said. When we get into that recession there will be a point when the Fed stops hiking and it starts to either slow down, or even at some point it will reverse those cuts, and you'll have a massive rally in a variety of beaten down inflation trades including crypto.  Trade safely 
The Exact Signal for Stocks and Crypto to Recover
avatarFattyBull
2022-09-29

Tesla is considering a lithium refinery in Texas

TSTSLA (Tesla Motors, Inc.) is considering setting up a lithium refinery on the gulf coast of Texas as it looks to secure supply of the key component used in batteries amid surging demand for electric vehicles.~ The potential facilitv would process "raw ore material into a usable state for battery production". A decision to invest in Texas will also be based on the ability to obtain relief on local property taxes, Tesla said. CEO Elon Musk has said previously that Tesla might have to enter the mining and refining industry directly at scale as lithium prices surge.- If approved, construction could begin in the fourth quarter of 2022 and reach commercial production by the end of 2024.Read more? www.reuters.com/technology/tesla-considering-lithium-refinery-texas-2022-09-09/
Tesla is considering a lithium refinery in Texas
avatarFattyBull
2022-09-05
$NIO Inc.(NIO)$Keep going. I think this quarter Nio did a great job meeting delivery target and financial. 
avatarFattyBull
2022-10-13
According to Mark Zandi of Moody's Analytics, The U.S. will see inflation cut in half within six months. His call, which comes on the cusp of another key inflation report, hinges on oil prices staying at current levels, supply chain problems continuing to ease and vehicle prices starting to roll over. Everything else, Zandi believes, can stay the same. "CPI, the consumer price inflation, will go from something that's now about a low of over 8% year-over-year to something close to half that of 4%," the firm's chief economist told CNBC's "Fast Money" on Wednesday. Trade safely
avatarFattyBull
2022-09-30
WILL WE GET HIGHER INFLATION EVEN THOUGH THE CENTRAL BANKS ARE ACTING AGAINST IT?"It is very important how the public rate a currency. Public perception about the currency is what monetarists miss."- Alasdair Macleod# WHAT DOES MACLEOD MEAN?Even though many people think that the FED and ECB raising interest rates will shut down inflation over time, this is not entirely the case. One of the most important factors for currency stability is trust. Essentially, the only value of a fiat currency as we have it at the moment is the trust of the people. If this fades and people do not trust in the value of their money anymore it's worthless. Therefore, inflation tends to rise over time, since it causes people to lose their trust in their local currencies, raising the question if the market current

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