US Trade Representative Robert Lighthizer told a congressional hearing on June 17, 2020, that the US Government has withdrawn from international negotiations on new global tax rules for digital companies at the OECD.
The Gold Breakout
This is the biggest story of the week. Here’s JC Parets at All Star Charts: There has only been one other month in the history of the universe where Gold closed at a higher price than it did yesterday. That was August of 2011. The trend here is still up: There will be a lot […]
Why would anyone invest right now?
[embedded content] Get The Compound delivered to your inbox, subscribe here! Michael Batnick and Josh Brown discuss the hottest topics of the moment, including: * Is there a such thing as learning too much from economic history?* The flight to the suburbs is real and probably not going to end anytime soon.* What to make […]
Every cent, plus interest
Two weeks ago we paid back the entirety of our loan to JPMorgan Chase that we had borrowed under the Payroll Protection Program. Every cent, plus interest. We’re replacing it with a traditional line of credit from Chase. We’ll probably get access to our line next month, with the intention of only having to use […]
How Stocks Predict Presidential Elections
Ryan Detrick from LPL Financial made my Chart o’ the Day today… Here’s Ryan: Turns out, since 1928, the stock market has accurately predicted the winner of the election 87% of the time and every single year since 1984. It is quite simple. When the S&P 500 Index has been higher the three months before […]
You can’t undrop the bomb
Things are different now. They started to change in 2008, when Congress and the Federal Reserve threw unprecedented money at the economy to keep it from collapsing. They’ve done it again this year, with even more money. Trillions and trillions of dollars. It was a huge debate in 2008. It’s much less controversial today. My […]
Why Public banned its users from trading in Hertz shares
[embedded content] Subscribe to The Compound on YouTube Josh here – this week I talked with Jannick Malling, co-founder and CEO of Public, one of the leading trading and investing apps, about the principled stand they took to protect their customers. Sometimes the regulators don’t catch on to potential risks for investors as quickly as […]
“The German Enron”
Almost anytime you hear someone say that such and such is like “Madoff” or “Enron” it’s usually hyperbole, but maybe not this time… They arrested the recently resigned CEO of Wirecard in Germany this morning. Hedge funds have been shorting the stock and pointing out accounting irregularities with the company for years and years while […]
Something to hate for everyone
Mutual fund manager and permabear John Hussman is now formally petitioning the financial services committees within the Senate and the House to stop the Federal Reserve from buying corporate bonds as part of the CARES Act. Apparently, the petition has been collecting signatures for a couple of weeks now, but I first came across it […]
“Inequality is the defining feature of our economy today”
This weekend’s Barron’s cover story by Reshma Kapadia looks at widening economic inequality that, at some point, will have major investing and taxation consequences for the investor class and Corporate America. The pandemic and related lockdowns took an already ailing situation and made it even worse. 40% of the people who’ve lost their jobs this […]