Michael Lebb and the Blog
I wanted to throw this blog out there even though I will not be maintaining it over time.
The main blog for michael lebb is http://1mjl.com/
and the twitter account is http://twitter.com/1mjl.
Stop by. Read. Enjoy.
Saturday, January 30, 2016
Business Financial Buzz Outlook
I find it incredibly strange how when there is no "news", people start talking about the next bubble.....
So what is going to implode or explode next to create a financial crash? Without the crystal Eight Ball, not even Buffet or Slim can tell us exactly. But if you happen to be in a position to take advantage of macro differences in the marketplace you might want to take a look at debt.
When I see articles such as this article,
http://www.bloomberg.com/news/articles/2016-01-28/some-29-trillion-later-the-corporate-debt-boom-looks-exhausted
that states:
There’s been endless speculation in recent weeks about whether the U.S., and the whole world for that matter, are about to sink into recession. Underpinning much of the angst is an unprecedented $29 trillion corporate bond binge that has left many companies more indebted than ever.
I think long and hard about the rise of FinTech and the availability of business financing that has created such a bounce after Wall Street found a way to make money, post being barred from internal trading profits etc.
Then as my mind wonders to the go-go 80's, I run across this article that locks in the thought that there might be somethings larger than what I initially thought here.
http://www.foxbusiness.com/markets/2016/01/29/mastercard-4q-profit-rises-11-1.html
The company's net income rose to $890 million, or 79 cents per share, in the fourth quarter ended Dec. 31 from $801 million, or 69 cents per share, a year earlier.
Mastercard is not making profits like this baking bread in the corner bakery. They have navigated a way to sell people around the world, access to what they think they rightly deserve. Access to money 24/7.
So, if we catch a break over the next 3-4 years, after the next recession (if that is what the current equity market is signaling), and the economy take a turn for the better, you will probably see higher gas and food prices, and you might want to take advantage of the easy money. I would think twice about it from a consumer perspective and make a move to barter or cash (if it still exist) before getting eaten alive by the high interest rate monsters lurking to take way more than your wallet.
--Michael Lebb
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