Most of this week’s 5 Things relates to government mismanagement of the economy. We draw two conclusions. First, the government should involve itself in less of the economy. Second, we should have called this “The Government is Mismanaging Things Edition”. One month after DKI told you the Fed cut rates too soon, the Core CPI … Read more
Bank of America $BAC has an outage with customers showing balances of zero. The customers are horrified. Want to know why the Bitcoin community finds this hilarious? The answer is hubris. Japan communicates it is dedicated to keeping ultra-low interest rates. The yen predictably declines again. Costco $COST made a fortune selling gold bars. Now … Read more
The theme in the markets this week was all about increasing government control of the economy and the money supply. The Chinese government poured liquidity into their banking and housing sectors causing equity markets all over the world to rise. There’s new evidence that the government intentionally and unnecessarily killed Silvergate bank. We explain why … Read more
Years ago, President Trump talked about a change in tax rates that he described as “big league”. It was misinterpreted as “bigly” and a new word entered the lexicon. Last week, the Fed pivoted and cut the fed funds rate. This cut was more than two years after Fed doves and asset gatherers started begging … Read more
The long-awaited pivot is here. The Federal Reserve is going to cut the fed funds rate this week. Asset gatherers celebrate the opportunity to blow up another asset bubble. The rest of the country should prepare for more misery-causing inflation. Russia talks about limiting exports of uranium during a multi-year supply shortage. Multiple people pinged … Read more
The big story in investing this year has been optimism and worry about demand for the chips powering AI applications. While generative AI has demonstrated some impressive capabilities, there are fears regarding when there will be a profitable business model to support the tens of billions of dollars of capital expenditures currently being made in … Read more
The week started with political proposals that will lead to production cuts and a reduced food supply. In the middle of the week, DKI released its new health care stock idea. Subscribers are already up around 20% in the name. The week ended with uranium production cuts and Fed Chairman, Powell, indicating the expected September … Read more
The big news this week was the lower-than-expected CPI and PPI figures for July. While expectations for a September 50bp (0.5%) rate cut by the Fed changes on a daily basis, DKI agrees with current consensus that we’ll see a 25bp cut next month. We believe that’s premature and unwise, but still think that’s what’s … Read more
At the same time the Bank of Japan caused panic and traders began to unwind the carry trade, something DKI has been talking about since October of 2022, multiple retail trading platforms failed. It might be a good time to hedge your portfolio, or have some assets outside the financial system (or both). Last week, … Read more
President Trump talks about Bitcoin and he and some other politicians call for a strategic Bitcoin reserve. Plus, we have another week of tech stock obliteration. It’s not that earnings were bad; but rather, that expectations and valuations were so high. Intel $INTC is the exception. Their earnings report was bad. We also have lots … Read more
