Posts

How Do Economic Cycles Work? Part I

-
Image
In that post, I would like to bring to your attention some simple aspects of how the economy work, having a simple notion can help you to sidestep and anticipate the global financial crisis. Although until today we haven't found a common ground about how that economic machine works, there are some simple and practical economic concepts that can help us to grasp in the big picture how it works. The economy might seem complex, but it works in a simple mechanical way. The economy is made up of a lot of simple transactions that are repeated over and over again a zillion times and these transactions are driven by human nature. Transactions is a very simple thing, we make transactions all the time. Every time we buy or sell something we create a transaction. Now, transactions are fulfilled either by money or credit in exchange for a product, service, or a financial asset. Credit + money spending = total spending and the total spending drives the economy. All cycles and all forces of the ...
Post a Comment
Read more

These 3 Stocks Offer Explosive Potential Gains

-
Image
CRISPR: The Craziest Thing You Have Never Heard Of We are on the cusp of the gene-editing revolution, and there is no turning back. This new technology is so easy to manipulate that we can't stop even if we want. The CRISPR gene-editing method has the potential to change our lives in a way that we have never seen before. We could finally take reins of our genetic destiny. That could mean the end to genetic diseases like cancer, Alzheimer's, diabetes, and many others. CRISPR is a powerful new technology that permits us to target and modify and delete any sequence of DNA in any gene. The revolutionary aspect of CRISPR is its precision, low cost, and usability. A new generation of DIY biologists trying to apply the principles of this new technology are on the rise resembles the internet revolution 20 years ago. It's no exaggeration when we say that CRISPR is revolutionary, with CRISPR experiments that were unimaginable a few years ago now is more than feasible. However, the ra...
Post a Comment
Read more

What Is a SPAC And How Does It Work?

-
Image
 Have you ever heard about SPAC?  At this point probably yes. SPACs have spiked in 2020 and it is a new trend in financial markets. But, What is a SPAC and Why do investors like them so much? SPACs s this year have raised triple the amount that they did in al of 2019, with companies slashing dividends and interest rates at rock bottom levels, investors are flocking to SPACs. So, what exactly are SPACs, and Why are they so popular? SPACs are also known as blank check companies and have become a popular way in recent years to list companies on a stock exchange. SPACs are shell companies with no commercial operations but are created solely for raising money for raising capital through an IPO to acquire a private company. That happens usually by selling common stock, with shares commonly sold at $10 apiece and with a warrant that gives the investor a preference to buy more stock later at a fixed price. Once the funds are raised, they will be kept in a trust until one of two things...
Post a Comment
Read more

Is a new stock-market bubble being formed right now?

-
Image
My answer to that question is YES ! All we know right now is there are huge unknowns in the economy and the path ahead is widely uncertain, making any prognostic is quite dicey. However, is pretty clear is that the economy is experiencing an epic collapse of economic activity that has set in motion problems that will play out over many years. We are in the most severe recession in a century and we will experience a halting recovery with a potential second wave of the virus coming up. So, is the stock market going nuts? Allow me to pinpoint   some facts that shore up my sentiments that the market has entered a Bubble. 1. Index Consumer Sentiment The stock market and consumer sentiment are telling different stories, the stocks have rebound off March lows, while sentiment is near the lowest level in nearly a decade. This divergence breaks a long term link between the stocks and ICS. The consumer index is a well-know indicator that measures how optimistic consumers feel about ...
Post a Comment
Location: New York, NY, USA
Read more