first_imgChina’s Huge New Factory Could Spark the Biggest Metal Price Spike in Modern HistoryAny day now, China will proudly open the largest factory in world history. Its sole purpose is producing one specific device – the same device that’s set to power the 21st century. It requires an enormous amount of raw materials—as much as 1,073x the world’s current stockpile—every single year. The companies who supply these materials to China are about to be in high demand—in fact, one small company could have its entire deposit bought out,  shooting its $1 stock through the roof. Recommended Link By Justin Spittler, editor, Casey Daily DispatchSome investors obsess over the jobs report.Others watch inflation like a hawk. And some fixate on factory orders.That’s because economic indicators offer clues about where the economy is in its life cycle.You see, the economy’s cyclical. It booms and busts.That’s why we want to own stocks when the economy is growing or about to turn the corner. At the same time, we don’t want to own stocks when the economy is shrinking or about to top out.In short, knowing where we are in the economy’s cycle can make you a much better investor.But there’s an even more important cycle that many investors ignore. And as I’ll show you today, they won’t be able to ignore it much longer.I say that because this cycle looks like it’s about to turn in a big way. That would have massive implications for the economy and U.S. financial assets.The good news is that there’s still time to prepare. At the end of this essay, I’ll show you how to do just that… Once again, Doug delivers an amazing analysis on the current state of social and political dystopia in today’s America. Like Doug, I believe there is going to be a hard landing. Unfortunately, most of the population will not only be oblivious to his insight but could not comprehend it if they were to read his brilliant treatise. Doug is truly a voice of truth in a world that prefers to hear something else.– WarrenThanks for writing in, Gordon and Warren. We’re glad you appreciate our content and what we do here at Casey Research. Let us know your thoughts on today’s Dispatch (or a previous issue) at [email protected] You Miss Last Week’s Big Event?Thousands of readers showed up to hear what E.B. Tucker believes is the single best way to potentially make a small fortune this year.Legendary speculator Doug Casey has used this method in the past to help him make millions. You can get all the details right here. For all the details on this time-sensitive opportunity, click here • Number one, interest rates are rising… In December 2018, the Fed lifted its key interest rate for the fourth time of the year… and the sixth time since the start of 2017. It’s now sitting at its highest level since April 2008.This is a huge deal. After all, the Fed’s benchmark rate sets the tone for many other rates.This means the Fed has also made it more expensive for businesses and everyday Americans to borrow more money… and in some cases, to pay off existing loans.That’s the last thing the U.S. economy can afford. Of course, there’s talk that the Fed will stop raising rates or even cut rates again to support the economy and financial markets.But it may be too late for that.• Appetite for risky debt is drying up… I say this because the junk bond market has gone cold.Junk bonds are bonds issued to companies with poor credit. These are riskier than bonds issued to companies with strong credit, so they pay higher interest rates.In recent years, investors couldn’t get enough of these bonds. Demand was through the roof. But that’s no longer the case.According to Dealogic, there wasn’t a single junk bond sale in December. That hasn’t happened since 2008 – the peak of the last global financial crisis.But it gets worse. The junk bond market went 40 days without a sale. That’s the longest cold streak since 1995. This tells us that investors are having second thoughts about lending money to companies with shaky credit. That hasn’t happened in years.If this continues, we could see stress across the debt market. Of course, I’m not the only one concerned by this.• The “smart money” sees trouble on the horizon, too… By that, I mean institutional investors. These firms manage huge sums of money. They understand the markets far better than the average guy.It pays to listen to them. And most of them see major cracks forming in the credit market. In January, CNN reported:Almost 75% of credit portfolio managers expect global corporate defaults will increase from very low levels in the next 12 months…Not a single respondent to the International Association of Credit Portfolio Managers survey anticipates default rates will drop. It’s the worst quarterly outlook since mid-2009, during the depths of the Great Recession.In short, signs of the credit cycle turning are everywhere. Rates are rising. Appetite for risky debt is drying up. And the smart money is bracing for defaults. This is bad news for people and companies with too much debt.It’s also a problem for investors with exposure to “bad debt,” which, as I explained in the February 19 Dispatch, is on the rise.• To prepare for when the cycle turns, I suggest you “look under the hood” of any corporate bond funds you own… You can do this easily (and for free) on Morningstar. Just click the “portfolio” tab once you’ve found the fund you own. There you can see a breakdown of the bonds the fund owns.Make sure that you have heavy allocations to “AAA/AA/A”-rated bonds, the safest kinds you can own. This simple step will help prevent you from having massive losses as the credit cycle reaches its tipping point.Regards,Justin Spittler Rio de Janeiro, Brazil March 4, 2019Reader MailbagMore readers write in to praise Casey Research founder Doug Casey…Doug, you and your team keep setting the standard for informing others about what’s happening in the world and how to improve your position and protect yourself. Thanks for all you do.– Gordon Find out how you could profit herecenter_img Tech pioneers made fortunes. Here’s how you could too.Amazon’s CEO Jeff Bezos just reached a net worth of $100 billion. Apple’s Steve Jobs’ net worth was $10.2 billion. Early tech pioneers had a shot at rises from 8,900% to 62,000%. The biggest technological shift this decade is coming. And this tech “insider” found a way to get in on the action! — Recommended Link • But let’s first take a close look at the cycle that’s flashing danger today…I’m talking about the credit cycle.The credit cycle refers to the expansion and contraction of access to credit over time.For the longest time, the credit cycle took a back seat to the economic cycle. Some investors overlooked it completely. But we’re about to hit a breaking point.Let me explain…As longtime readers know, the Federal Reserve took the credit cycle by the horns during the last global financial crisis.In December 2008, the Federal Reserve dropped its key interest rate to effectively zero and held it near record lows for almost seven years.This unprecedented intervention by the Fed flooded the economy with cheap credit.• Everyday Americans borrowed obscene amounts of money… They bought everything from new cars to homes… And some even paid for college.Today, the average American is deeper in debt than ever.Last quarter, total U.S. household debt jumped by $32 billion. It now sits at $13.5 trillion. That’s a record high… and 7% higher than a previous peak of $12.7 trillion hit during 2008.But it wasn’t just everyday Americans who got drunk on debt.• Corporate America went on an epic borrowing binge, too… Just look at this chart, which I first shared a couple weeks ago.You can see that total outstanding corporate debt is up 86% since 2008. For comparison, the U.S. economy grew just 18% over the same period.Corporate debt as a percentage of U.S. gross domestic product (GDP), the most popular measure of economic growth, is now higher than it has ever been.This isn’t sustainable.After all, we’re talking about household and corporate debt. Unlike the government, these borrowers can’t print their way out of this mess. They will either have to pay off their debts… or default on them.And the latter looks more likely with each passing day. I say this for a few reasons… —last_img

Related Posts

first_img Pasadena’s ‘626 Day’ Aims to Celebrate City, Boost Local Economy 4 recommended0 commentsShareShareTweetSharePin it Faith & Religion News First Church of the Nazarene: Back to School Supply Drive From STAFF REPORTS Published on Thursday, August 1, 2013 | 1:20 pm faithfernandez More » ShareTweetShare on Google+Pin on PinterestSend with WhatsApp,Virtual Schools PasadenaHomes Solve Community/Gov/Pub SafetyCitizen Service CenterPASADENA EVENTS & ACTIVITIES CALENDARClick here for Movie Showtimes Community News More Cool Stuff Business News Name (required)  Mail (required) (not be published)  Website  The First Church of the Nazarene, is still collecting donations through August 4!Don’t miss the chance to participate in PazNaz’s Back to School Supply Drive benefitting Field Elementary School & PazNaz’s Community Partners through August 4. For those interested to participate, they can pick up a list of needed supplies from the patio table on Sundays or from the church office during the week. Please drop off your donations in the church office or in the marked boxes around campus. Contact Pastor Amber Baker with questions at [email protected] Church of the Nazarene, 3700 East Sierra Madre Boulevard, Pasadena, (626) 351-9631 or visit www.paznaz.org. Make a comment Community Newscenter_img Top of the News Pasadena Will Allow Vaccinated People to Go Without Masks in Most Settings Starting on Tuesday EVENTS & ENTERTAINMENT | FOOD & DRINK | THE ARTS | REAL ESTATE | HOME & GARDEN | WELLNESS | SOCIAL SCENE | GETAWAYS | PARENTS & KIDS Your email address will not be published. Required fields are marked * Get our daily Pasadena newspaper in your email box. Free.Get all the latest Pasadena news, more than 10 fresh stories daily, 7 days a week at 7 a.m. Herbeauty8 Easy Exotic Meals Anyone Can MakeHerbeautyHerbeautyHerbeautyInstall These Measures To Keep Your Household Safe From Covid19HerbeautyHerbeautyHerbeautyYou Can’t Wear Just Anything If You’re The President’s DaughterHerbeautyHerbeautyHerbeauty10 Questions To Start Conversation Way Better Than ‘How U Doing?’HerbeautyHerbeautyHerbeauty15 Countries Where Men Have Difficulties Finding A WifeHerbeautyHerbeautyHerbeautyStop Eating Read Meat (Before It’s Too Late)HerbeautyHerbeauty First Heatwave Expected Next Week Subscribe Home of the Week: Unique Pasadena Home Located on Madeline Drive, Pasadenalast_img

first_imgSubscribe Tagged with: The Industry Pulse Share Save Servicers Navigate the Post-Pandemic World 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago Previous: Filling More Vacancies Next: Bucking Stereotypes _______________________________________________________________________________________Melvin Watt, Director of the Federal Housing Finance Agency (FHFA), recently announced Andre D. Galeano to Deputy Director of the Division of Federal Home Loan Bank Regulation. Prior to this position, Galeano served in various positions in the FHFA since 2002. Additionally, Galeano served as Associate Director of examinations for the FHLBanks, Associate Director of credit risk for Fannie Mae and Freddie Mac, and Examiner-in-Charge of Fannie Mae._______________________________________________________________________________________ZVN Properties has recently announced the hiring of Kiyoshi D. Hunt as VP of Strategic Partnership. Hunt has over 23 years experience working in professional sales and management with local and national organizations over multiple business segments. Utilizing his “client first” approach, he has a proven track record of high level business development and service management, problem resolution skills, and is an expert in creating efficiencies and processes to assist clients in achieving their goals.  Hunt has worked in the REO industry since 2009, and has excelled in forming strategic partnerships. Prior to joining ZVN Properties, he has successfully created synergies among multiple companies in the REO industry to protect vacant properties by working with national property preservation companies, banks, and other organizations in the industry._______________________________________________________________________________________International Document Services, Inc. (IDS), a mortgage document preparation vendor, announced recently the promotion of former Manager of Development Beckie Santos to the newly created position of Manager of New Product Development. In her new role, Santos will leverage her development experience to work closely with the IDS development team as well as operations, quality assurance, and compliance to help shape and guide future solutions. Santos joined IDS in 2004 as a developer. During her tenure in development, she became known as a go-to developer for difficult projects. In 2010, Santos was promoted to Manager of Development. In her new position, Santos will also oversee the global integrity of IDS systems. She will further work to make certain that releases run smoothly, coordinating with both customer support and development to certify that all updates are clean and efficient._______________________________________________________________________________________ClosingCorp, recently announced that Springboard Home Loans, a not-for-profit mortgage lender working to expand homeownership, has begun using its SmartFees solution, an automated fee solution that delivers real-time closing cost data from more than 20,000 individual service providers. With this move, Springboard will now be able to expedite Loan Estimate and Closing Disclosure production through its integration with ClosingCorp and Ellie Mae’s mortgage management solution, Encompass. Servicers Navigate the Post-Pandemic World 2 days ago Flagstar Bank recently announced the addition of Kristy Fercho, who was previously SVO and Customer Delivery Executive for Fannie Mae, to lead Flagstar’s Mortgage Business. In 2016 alone, Flagstar originated $32 billion in home loans. Fercho spent 15 years with Fannie Mae, originally as the VP of human resources responsible for the company’s people strategy, talent acquisition, and cultural transformation. Since then, she served in customer management roles and oversaw mortgage production of almost 2,000 lenders. As of late, she managed customer delivery strategy and business performance of all Western U.S. customers, delivering single-family home loans to the agency. She is a mortgage industry veteran with knowledge in mortgage originations, servicing, fulfillment, risk management, and regulation. The Best Markets For Residential Property Investors 2 days ago in Daily Dose, Featured, Market Studies, News About Author: Brianna Gilpin The Week Ahead: Nearing the Forbearance Exit 2 days ago Demand Propels Home Prices Upward 2 days ago Home / Daily Dose / Which companies are merging, and what professionals are moving? See some highlights in this update of the housing and mortgage industries. The Industry Pulse 2017-08-10 Brianna Gilpin Governmental Measures Target Expanded Access to Affordable Housing 2 days ago  Print This Post Governmental Measures Target Expanded Access to Affordable Housing 2 days ago August 10, 2017 1,190 Views Data Provider Black Knight to Acquire Top of Mind 2 days ago Demand Propels Home Prices Upward 2 days ago Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] The Best Markets For Residential Property Investors 2 days ago Sign up for DS News Daily Related Articleslast_img

first_img Brianna Gilpin, Online Editor for MReport and DS News, is a graduate of Texas A&M University where she received her B.A. in Telecommunication Media Studies. Gilpin previously worked at Hearst Media, one of the nation’s leading diversified media and information services companies. To contact Gilpin, email [email protected] Perhaps no other decade has impacted the housing industry as much as the last 10 years have, but successfully navigating that period has led to a sea of change in terms of innovation. Take a look at what Jason Allnutt, General Manager at Auction.com, had to say about the past and future of Auction.com and the industry as a whole. Governmental Measures Target Expanded Access to Affordable Housing 2 days ago The Best Markets For Residential Property Investors 2 days ago Related Articles 2017-09-15 Brianna Gilpin Demand Propels Home Prices Upward 2 days ago The Best Markets For Residential Property Investors 2 days ago DS News: Reflecting on the last decade, what changes have you witnessed in the industry?Perhaps no other decade has impacted our industry as much as the last 10 years have, but successfully navigating that period has led to a sea of change in terms of innovation. Today, new technologies make it easier for investors to quickly ascertain what properties are actually worth; and what borrowers are able (or likely) to do to cure default. Although inventory amount has tapered from historically high levels, the industry continues to evolve, and we are finding that online marketplaces continue to gain share based on improved outcomes. This growth is a direct result of the out-of-the-box approach that we’ve witnessed from industry leaders with their implementation of new ways of thinking and innovative solutions to address the challenges presented to them. This new approach to the business, paired with the ability to provide a robust online platform has resulted in the vibrant, healthy marketplace that we see today.DS News: I understand Auction.com is rebranding in conjunction with its 10th anniversary. Tell us about that.Auction.com, as a brand, is celebrating its 10th anniversary. We evolved from Real Estate Disposition Company in 2007 after finding the value and efficiency of disposition in the digital environment. Timed to coincide with our anniversary, we have unveiled a new logo, tagline, and updated design aesthetic that reaffirms our commitment to providing buyers and sellers with optimal disposition strategies for faster executions. As we’ve grown from an online auction site to the only platform uniquely able and proven to successfully bring any and all assets to auction no matter the stage in the disposition lifecycle, we look forward to going “Beyond The Bid” in providing proven disposition solutions that better prepare buyers for success.DS News: What have you learned over the course of the past decade that helps you continue to steer Auction.com forward? I remind myself of the importance of being relentless in the pursuit of developing optimal solutions, innovative in developing clear strategy, and forward thinking in exploring new opportunities in the marketplace.Each of these qualities validates the importance of having an experienced and committed team in place—one that keeps our buyers’ and sellers’ needs top-of-mind in effectively presenting the most optimal disposition strategies in the market. The creativity fostered by our team positions Auction.com to best serve our sellers through a faster, more cost-effective method of disposing of their assets, and our buyers by providing the level of education and supporting resources needed to empower them to bid in confidence.DS News: What is next for the industry? Our industry is moving at a rapid pace and frankly, for us, it’s hard not to be optimistic about the future. The economy continues to improve, consumer confidence remains high, and as the established market leader in distressed asset disposition, Auction.com is well capitalized with access to the strategic and financial resources we need to drive the continued innovation of our technology and future expansion of our global footprint. in Daily Dose, Featured, News, Technology Servicers Navigate the Post-Pandemic World 2 days ago  Print This Post Home / Daily Dose / The Housing Industry: Then and Now The Week Ahead: Nearing the Forbearance Exit 2 days ago Data Provider Black Knight to Acquire Top of Mind 2 days ago About Author: Brianna Gilpin The Housing Industry: Then and Now September 15, 2017 1,686 Views Demand Propels Home Prices Upward 2 days ago Share Save Servicers Navigate the Post-Pandemic World 2 days ago Previous: Fannie Mae’s Economic Update Next: The Week Ahead: The Five Star Conference and Expo Sign up for DS News Daily Data Provider Black Knight to Acquire Top of Mind 2 days ago Governmental Measures Target Expanded Access to Affordable Housing 2 days ago Subscribelast_img

Leave a Reply

Your email address will not be published. Required fields are marked *