News

What the Media Was Worried About – March 2022

The big stories for the month were Ukraine and inflation.  There were several potential headline-grabbers relegated below the fold during the month.  Let’s get to it. War Massive sanctions, asset freezes, and divestiture of Russian stocks. Germany meme: “So the world wants Germany to raise a huge army, march through Poland, and maybe fight the Russians?  Are you sure?” Russians seize Ukrainian nuclear power plant, Europe’s largest. Cascading press releases of companies cutting ties with Russia in one way or another. Russian stocks and ETFs holding Russian stocks halted. Ukraine/Russia is a rare case of war between two countries with McDonalds Russia is firing on civilians Potential ceasefire on 3/16 doesn’t happen Inflation Babysitting rates skyrocket Oil hits $130 – gasoline prices rise Nickel hits $100,000 per metric ton on LME, blowing up WisdomTree’s 3x inverse nickel ETF – If you have a $100 margin call, it’s your problem.  If…

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Coronavirus Fears

Stocks are off by about 3% this morning (as of noon on 2/24/2020) on fears that cases of coronavirus are accelerating outside of China.  Should you worry?  For the “general American public“, the answer is no.  Does that mean that only an idiot would be concerned by this?  No.  Identifying and dealing with threats is how humans have survived as a species.  It’s normal to watch the news, worry, then talk to someone about it. China China’s position as not only a supplier of goods, but also as a newly dominant source of demand for goods is a twist, though.  I will be watching Apple stock as a proxy for this story.  A good amount of Apple stuff is dependent on the Chinese supply chain.  The rising Chinese middle class loves the iPhone.  Also noted is that the ‘Trade War’ between the US and China may have softened the blow…