Spring, the Rebirth

 - Let us not look back in anger, nor forward in fear, but around us in awareness.

- James Thurber

Presidential Year

In this election year we hear the Democrats with "Bidenomics." An economic plan to revitalize our nation. We hear the Republicans, "MAGA (Make America Great Again)." Talk is cheap. Actions speak louder than words. Neither party has real action, only words. How can you say that, you ask?

It was both the democrats and republicans who allowed the Taft-Hartley Act to pass. Neither of the two parties fought to impose tariffs to protect American industry and workers. It is only the realization from COVID-19 that we do not make anything in America. We couldn't even produce masks! This knowledge turned to defense. How can we protect ourselves in war, if we cannot make anything? Biden passed the chip act, but little or nothing else. In a show of understanding he is pushing the government to help Baltimore with rebuilding the Francis Scott Key bridge. We applaud! This is what the founding fathers meant to promote the general welfare. The problem is this will be a one and done, a campaign item to be exploited. In Trump's term in office, he only passed token tariffs to appease his voters. He is an ego, phony with no economic plan. The real question is how did we get here? Why don't we protect our companies and working class? Why is there so much division?

Flash Back

The first retaliation by producers came after WWII with the Taft-Hartley Bill. It allowed firms to hire new workers if their workers went on strike. The Pentagon influenced the second blow with the Korean War. The military brass saved Toyota. It purchased vehicles from the company with logistics to Korea. Nothing seriously changed in America until 1970. Japan started to export cars to our nation. JFL was in LA at the time. He rented a Corolla because it was the cheapest to rent. He says, "It could not exceed 70-miles per hour." Cars passed him left and right on the highway. It felt dangerous to be in that vehicle. However, Toyota constantly refined the car. It is now a very reliable, quality brand. During this period, OPEC started their oil embargo for two reasons. One, they were anti-Isreal. The second was due to the low price in currency exchange for their oil. The politicians only mentioned the first reason. Rising oil prices made small cars that got great mileage very sttractive. Imports found a markt niche.

While this was the news of the day, something else was happening in board rooms behind the scenes. Greed! Executives began seeking greater profits. The first was labor costs. The second was quality control. Taft-Hartley allowed them to circumnavigate unions. Now, they came up with the poison, planned obsolescence. The person who came up with this disease should be shot. We mean this figuratively. The idea was to develop parts that will only last until the warranty experation. Then, the consumer will have to buy parts from us. We will have a continuous cash cow. Can you see the difference between Japan and our poor leadership? They seek to make their product better and our executives seek to plunder the consumer. No wonder we lost market niche to competition. Sadly, outsourcing and plan obsolence took hold in our board rooms.

Present Time

Look no further than Boeing. The founders sought to make a quality aircraft that was safe. They developed the best areo-company on earth. They were rewarded well for their efforts until greed entered the equation. Now, the company shows contempt for its labor. The prior CEO, Mullenberg make claims that Boeing was developing a new plane and the Seattle workers would benefit if they voted to accept the companies economic offer. They did. Mullenberg lied. He moved the work South to a non-union state. Those workers will be happy until they get screwed like the union laborers.

Meanwhile, the executives sought greater riches that rewards stockholders and options. They outsourced work. They chose the cheapest offers. They were planting the seed to make the new plane unsafe. It had not one, but two crashes of death and suffering. Mullenberg out. Calhoun in. The word is the new man will work tirelessly to rebuild the company like spring with rebirth. His tireless efforts can be seen in the video of a United Airline Boeing aircraft taking off and the wheel falling off, tireless. His efforts can be seen with plug doors shooting off Boeing planes. Was his efforts behind the Boeing whistleblower, John Barnett who was suppose to give his testimony in court when he was found dead in a parking lot in his car? How can anyone justify giving Calhoun a departing $45.5 million severance package? This is what is really wrong with America. Boeing needs to install a man who recognizes workers contributions and seek to make the best, safest airplane. Stockholders will be rewarded by returning the firm to be the nimber one in flight. We fear not. 

This is the SIN!

Recent history shows company-after-company cutting corners, seeking riches and screwing workers and citizens. It took real tireless efforts with real pain and angony to expose, the Love Canal, Hinkley, CA with PG&E, the water in Pound River, New Jersey and on-and-on. The disease of greed is in all of our corporations from Big Pharma to clothes, to retail to utilities, everywhere. It is the gospel of Wall Street. It is why so many students seek to be lawyers or in finance when we need doctors and engineers. Sadly, it is killing sports. We do not watch the Olympics because it is no longer amateur atheletes that promotes good will among nations. They are all professionals. It is killing our favorite, American (NFL) football. The schedule in 2024 will play on Christmas Day. This is distasteful spiritually and because the holiday falls on Wednesday, it is dangerous for the players in the shortened week. The game is physical. The players need rest. The disease of greed is effecting everything. 

If one receives a position of power and influence, be thankful. You will live a life without economic worries. Seek to leave a legacy of doing well for all and your family. In this environment we do not see the door to this view. This is why we at Evolution, advocate a new third political party, the Liberty Party. It will have a platform that protects American companies that provides work in the US and that follows the founding fathers idea to promote the general welfare. Peace.

Odds and Ends: March 2024

 - Things do not change; we change.

- Henry David Thoreau

The Bear Goes On...

The market has no fear as the Dow seems to hit new record highs every week. The industrials have gone straight up since last November at 33,961. Last Friday, it loomed at a new record at 39,475. The SPX copies the move. Last April the price was 385 and last week, a record close of 521. Friday was a down day, the SPX was even higher the day before at 522.

However, we remind you, Dear Reader that beside all the huff and puff of the Bulls, this is not a true rally according to Dow Theory. The transports are still in consolidation. Both indexes need to be in conjunction for a true rally. Big money does not see anything, but cheaper money coming with the Fed offering three rate drops sometime this year. We heard this song before from Sonny and Cher, "The Beat Goes On."

What We See...

Biden signed a revenue package last Friday to keep the government solvent. Throw another $1.2 trillion to the problem. We ask, Did we make $1.2 trillion to cover this debt? Folks, the interest alone for January 2024 from our debt was $184 billion. These idiots have no sense of value. They display no responsibility, character and leadership. By the way, tax revenue dropped by 93% for January. Debt makes our currency cheaper to which gives us inflation.

Then, we read this...

Companies laid off 82,037 employees in January 2024. Unemployment is spreading as we hear that Barclays bank is forming a list of pink slips. Nike is laying off 1600. They see something, but they are not saying what they see. Someone knows. It shows in the charts. Last May, Nike (NKE) was $126 and then fell to $88. It bounced to $123 and last Friday fell to $101 on strong volume. How about another big boy, Apple? It rose to $198 and last week fell to $172. One more? How about the high flyer, Lululemon? This meme stock hit $519 in January 2024, only to bury investors last Friday at $403. Ouch!

Same old, same old

When a merger comes, the buyer always says, "This is good and no jobs will be lost." Then, cost cutting comes and jobs lead the list. We saw this again as Ben & Jerry's announced a merger. Now, they plan to release 7,500 workers. Back to Biden...

He will push his electric vehicle charging stations as part of his reelection campaign. However, Tesla (TSLA) continues to dive lower and lower. We feel $101 is coming. The electric vehicle stock was $300 last July. The #3 carmaker, Stellantis (Dodge) is laying off 400. Mostly from the electric division.

If all of the above does not deter the Bulls, how about this tidbit? US bankruptcies hit a 13-year high in 2023 and the expectation for 2024 is even higher. We add that vacancies in commercial real estate rose 19.6% in the fourth quarter of 2023. The CAPE sits at record highs of 34 and yet, the Bulls worry not. Does John Calipari worry about his $33 million paycheck after his Kentucky basketball team lost again to a 15-seed in the first round of March Madness? Do investors in Digital World worry about evaluation? It is in the billions for a media company that only has $3.4 million in revenues. Do the Bulls read about the pending longshore strike in the port of LA? In a related message, the CEO of Maersk, the largest shipper saying, "Overcapacity is killing shipping rates." We think not. By the way, Maersk chartered the ship that hit the bridge in Baltimore. 

On the flipside...

A crazy stat. AI will consume more electricity by 2027 than the nation, the Netherlands.

Germany has legalized pot smoking. If you have not made it a Lenten sacrifice, take a puff and reread the above. Exhale. Thank God for all His blessings. Have a wonderful Easter, Passover, Ramadan or any other follower of a higher power. Take consolance that in this aspect, we have a common understanding and agreement. Even the atheists realize that faith believers make the world a better place...Peace.

Changing Outlook

 I was going to open with the latest market manoeuvres, but I was caught and captivated by the call-out speech of Senator Schumer of New York. He displayed great political courage and his views are worthy of being in JFKs classic work, Profiles in Courage. 

He is Jewish and the leading American in politics with that faith. He will be attacked by radical Zionists, but he is not only correct in our view, but noble for standing up to the prime minister of Israel, Netanyahu about the way that he conducts the present war in the Middle East and stating that he would never recognize Palestine to be a nation. We stated in earlier pieces that there will never be peace with this man. Schumer even called for the citizens of Israel to vote him out of office. Bravo!

Market

Whenever you talk about the market, you need to lead with the big dogs. Even though the industrials hit a new all-time high, the transports have not come along to show a true bull market. Microsoft (MSFT) has been in an uptrend since last October. Amazon's (AMZN) chart looks similar. However, Google (GOOG) has been in a sideways pattern. Tesla (TSLA) has been in a downtrend since last July. Apple (AAPL) has declined since last December. Dropping the AI in cars leaves a lot of doubt for the market and investors. Bottom line: A mixed bag of results.

Commodities 

Led by gold, copper and oil have all seen either breaking out or approaching new highs. If you think about this price action, you will realize what we have stated all along, inflation is not going away. We could experience a second wave of inflation. This will put pressure on the dollar. We always remind you to watch King $Dollar. It had a bounce last week, but failed to reach the 103.5 level which is the confluence point. 

Oil

It is the most important commodity. Of course, you could argue that you can't eat oil and food is number one. Food, by the way, has disharmony in pricing. Potash is down. Stables are sideways. Anyway, both US crude and Brent are in an uptrend since last December on good volume. Oil needs to break $84 to show conviction.

Copper

The good doctor has been on vacation since March 2022. At that time it hit a high, but immediately declined. It basically was in consolidation since July 2022. It broke out of that range last week. It can prove itself by piercing $4.40. Electric cars need copper and since the AMA keeps a lid on new medical schools, supply issues will come into play. (Forgive that play on words, but we feel that more medical schools are needed. We need real doctors!) Dr. Copper is just a nickname for the metal.

Gold

We saved the best for last. If you look at a monthly chart of gold since 2011, you will see a cup and handle pattern that got completed in 2022. This is very bullish. Gold broke out last week. It hit a new all-time high. It has solid support at $2000. With Fibonacci we project gold to reach $2550 with the possibility of $2668. YAY! 

No Change

The Fed will announce their policy later today. We expect no change with a hint for a future change. We never place any faith in this corrupt cabal. 

With that news, I hope that you had a nice St. Patrick's Day, enjoying a holy Ramadan and for others, getting ready for Passover and Easter. Peace.  

State of Union is a Pulpit Campaign

 We, at Evolution are Baby Boomers. We have seen and experience a lot in our lives. We have heard many state of the union speeches. The only one that we can recall that had some reality, some truth was by Gerald Ford in 1975. His diagnosis of America at the time was honest except he only talked about the present state (consequences) and not the causes. Here is the gist of his speech...

State of the Union - 1975

- The state of the union is not good. Millions of Americans are out of work. Recession and inflation are eroding the money of millions more. Prices are too high and sales are slow. This year's federal deficit will be about $30 billion...Some people question their government's ability to make hard decisions and stick with them...

This is honest except when even admitting problem issues, he falls short in declaring the reasons for the state of the nation. We know: Foolish war that lost lives, resources and exploded our debt with the corruption of LBJ by keeping the war off the books, the Fed printing money, and the outsourcing of jobs and the lack of protections for American firms. You know, some things never change...

Today's Speech, Response and Real State

Biden opened loud. He referred to Trump as his predessor and not by name. He declared support for Ukraine to which we support. His made in America of computer chips is something we have advocated for a long time. He offered an olive branch to the Republicans by using a positive from R. Reagan's administration. Then, he switched gears to the abortion question. We are Catholic. So, we are against abortion, but like JFK, we obide by the nation's call. Except we never get to vote as this is the flaw in our constitution. Anyway, after this, everything that he said was either buying votes by spending or an outright lie. What lies, you ask? How about the issue of being safe? How about the point that he claimed to produce 800,000 jobs in manufacturing. We say, "What about the 12 million that we lost?" Towards the end, he made overtures to the populist or independent voters with a suggestion of taxing the wealthy and corporations. I don't believe him. If he was honest, he would've attempted this from the beginning. His plan on immigration lacks truths besides a lack of judges. How can you allow an illegal asylum, when that person has demonstrated a complete disregard for our laws by sneeking into our country and then claim to be innocent? We need a better process to register people seeking to enter the US and become citizens. Here is an idea. With so many at the border, (in the millions) maybe we should move those who speak English to the head of the line. Kids who do not speak English is one major cause why our education system is doing so poorly. Also, immigrants need to demonstrate that they would be good citizens by following our rules and procedures. We have nothing against immigrants.

The republican response was nothing more than using the Tricky Dickie playbook of law and order. Katie Britt said nothing but fear. She didn't even bother to include the populist or independent voters in her reply to the democrats. The one thing that we agree with her is the point about the withdrawal from Afghanistan. Typical, as a republican, she offered no plan for our nation because the republicans only support the wealthy. Do you know the GOP stands for? Guardians of Privilege. You know, some things never change...

Neither party addressed our disgraceful national debt or the Fed that sponsors our debt. Neither party addressed the hacking that takes place everyday. Neither party offered any ideas to lower our debt and stop the bleeding in our standard of living. Neither party called out the prime minister of Israel for his imperialist attitude toward the Palestine people. We agree that Israel is justified to defend itself, but using this conflict to grab land only gives cause to continue the hate, the distrust and more violence between each people. He has repeatedly in his time to use power to expand Jewish settlements into what was Palestian territory like he quietly did last week by approving 3,400 new settlement on Palestine territory. Two wrongs do not make a right. One sin does not justify to allow more sins to be committed.

We, at Evolution feel that in an election year, neither party will do anything to address these issues. Some things never change... Peace. 

Debt and Gold

 - If the American people ever allow private bank to control the issue of their currency, first by inflation, then by deflation, the banks and corporations that will grow up around them will deprive the people of all property until their children wake up homeless on the continent their Fathers conquered.

- Thomas Jefferson

Look Around!

We can see the prophecy being fulfilled on our city streets, traffic jams in foodbank parking lots and now, millions of migrants joining their ranks. This is what the cabal at the Federal Reserve and all central banks accomplish. World debt is over $307 trillion. In 2020 world debt was $226 trillion. This averages to over $20 trillion per year. Dear Reader, there are only two nations that has an economy higher than the average and there are only 19 countries with an economy that surpasses $1 trillion. The world's population will be working to pay off debt like indentured servants and possibly, their nation's currency could collapse due to debt. Maybe they should join the meme of ending central banks? Our nation has many ills. The top of the list is the Federal Reserve. We say, "End the Fed!"

Meanwhile...

in the US our debt ceiling forces another political theatre. At the moment our national debt exceeds $34 trillion. If that figure was not scary enough, not mind boggling enough, consider this fact. Our debt total climbs at one trillion every 100 days. We can guarantee you that it will grow by $3 trillion every year. We not only need much higher tariffs on all imports, but we need to tax the wealthy and cut off all their loopholes. We need at least $3 trillion in government revenues just to slow this economic disease. It could become fatal. Even if the idiots in government take up our ideas, the compounded interest on our debt will consume one-half of our budget. See what a central bank causes? Can you hear my cry, "End the Fed!" 

Election Year

In an election year I doubt that this economic tsunami will be answered. Biden buys votes from the young by cancelling student debt. This is a mortal sin unless there is free education for all. He buys Hispanic votes with a no border policy. He will appease any voting block to win again. He spends like he has unlimited funds. He is a disgrace. If Trump is his opponent, he will say anything to get votes with no conviction. We know this from his time in office and his words on 6th January, "We will walk..." except he was not present to lead the protest. He may attack Biden about the debt, but he spent big time in his term. If elected, he will spend just like Biden. He is a disgrace. However, I ponder one question. If the election is rigged like Trump says and if he wins, is he stealing the election? Our nation lacks a true leader with morals, vision and character.

Market Near Term

The market should have a pullback from the recent rally, however all signs point to a strong rally. Election years historically have been good for stocks. The Fed should begin dropping rates in the second half of the year. Together, this will give the Bulls the upper hand in the market unless some unknown changes the picture. One strong positive for gold is the GLD. It hit a new all-time high against all currencies.

Back to Debt

Moody's realizes the danger of our debt. The rating firm just downgraded the outlook for the US from stable to negative. In Europe, Body Works is closing 150 stores in the UK. In Germany, 73 major companies lobbied the EU to protect and offer ideas to make the industrial landscape more competitive. The "Antwerp Declaration" is talking about China and how they attack segments in an economy to dominate. Apparently, China does not worry about debt, but then again, Evergrande comes to mind.  

Jefferson and Gold

After long discussions, the founders came to the conclusion that in order to have a stable currency that fights inflation the only choice was gold. It would also check government spending and reward thrift.  Praise God for their enlightenment. Anyway, fiat rules our system and we can see the results: falling standard of living, inflation and mountains of debt.

Another Choice?

The pushers of Bitcoin say that their coin protects because they will not create more coins. They say it is safe. They say a lot of things. We, at Evolution do not believe in Bitcoin. If it were a currency, they would have to dilute to make coins available for everyone. Safe? If someone buys into it with the intention to break the code, you could lose everything. As for the founders, they are only replacing banks to make the owner of the coin rich like Sam Bankman-Fried. Enough said! We put our faith in Jefferson and Franklin.

Gold Outlook 

The price action in gold is always suspect because it goes against the grain of fiat. On a monthly chart, gold has been in a four year consolidation pattern. The longer a consolidation, the greater the breakout. The question? Which way, up or down? We look to the XAU for clarity. We also point out that even with the Fed imposing higher interest rates, gold has maintained a price at $2000 per ounce. Positive. The XAU had a high in April of 2023 at 165. Last week it was 108. Gold needs to prove itself by surpassing the 165 price level. A strong sign would be if gold could form a new price level at $2100 per ounce. Now, it needs to hold price and make new highs. The other indicator will be the dollar. A drop below 103.5 would provide juice for gold. We like the aspect that gold has reached $2100 level with a strong dollar. This speaks volumes. Any decline in the dollar will act like a V-8 to the price of gold.  Peace.

Odds and Ends: February 2024

- "You have heard that it was said, 'You shall love your neighbor and hate your enemy. But I say to you, love your enemies, and pray for those who persecute you...'" 

- Mt. 5:43- 44.

Confusion

We all suffer from it from time-to-time. So much hits our minds that it clouds our judgement. It recalls the gospel of last Sunday. This has got to be the most difficult statute from our Lord. At one time, I hated my older brother. Relations in families have situations where one relative has not spoken to another for decades. How can a Ukrainian love a Russian? How can citizens in the US love China when it causes so much harm to our nation? Can a Jew love a Palestine? How about Blacks and Whites in America? The task seems unachievable. 

Dear Reader, we should look to Germany for the answer. They had a 30 Year War, a civil war over religion. Somehow, they put away their hatred, their revenge and remembered that they are all German. It led to the nation's unification. Then, a 12 year slip into darkness. Today, they make a conscious effort to remind each other of their sin. They make memorials to their sin with an effort to love each other, especially Jews. No one here at Evolution has the answer. We all agree that it begins with a positive step. As for the market, confusion reigns.

Parabolic

The S&P went ballistic. It was 3800 last March. It hit 5111 last week. We, at Evolution are confused. Nothing new happened to spur the advance. Retail sales fell sharply for January. It fell eight times more than what "experts" predicted. In fact, retail has fallen month-over-month and yoy. Big ticket items like autos, electronics and appliances also fell mom and yoy. Confusion! 

Tail of Two Techs

Nvidia (NVDA) gave the market a vitamin energy. The stock was $225 last March. It hit $823 last week. This is the poster child for a parabolic move. Then, we have the tech, Palo Alto (PANW). It rose from last year at $180 to hit $380 on Valentine's Day. Last week, the bottom fell out. It sank to $260 on strong volume with $220 in its sights. What gives? Confusion.

We remind you that the market seems to be replaying the year 2000. Prior to the millennium, Cisco was the superstar stock. It went parabolic. A hold forever. It crashed. It has never reached the high that it had in 2000. There are many other examples. The best and latest is the Nikkei Index in Japan. It went parabolic in the 80s. Well, it just finally reached a new high after 34 years. Let that timeline sink into your stream of thinking.  We also read about a new IPO, Reddit (RDDT). The company was founded in 2005. It has never made money. It lost $90 million in 2023. It will receive a meme calling. We say, "Beware!" The market to us is way overpriced. The CAPE is 33. To understand that stat, the CAPE in 1929 was 30 before the crash. Leave a little room in your cortex for that knowledge.  Of course, we admit that we are confused. but we remember the words of wisdom, "It is better to be safe than sorry."    Peace.

Disappointed?

- When the truth is found to be lies                                                                                                                   And all the joy within you dies...

- "Somebody To Love" Jefferson Airplane

Meaning?

Grace is saying that life will disappoint and the best thing that you can do for yourself is to find love. The stock market will not give you love unless your only pursuit is riches. Of course, you must be a successful investor or in management who lives for money. This goes without saying that you do not believe or fear the Lord's words, "What good is it if you possess the world and lose your soul?"

Back to the Market

When the inflation report came out last week at 3.1% and higher than anticipated, the market fell. It  disappointed on many levels. The most serious one looks to the next Federal Reserve meeting. Prior to the inflation report, the market put its faith in the belief that the Fed might begin the first drop in interest rates. The Fed cycle would peak and easy money would be forthcoming. Now, the outlook for a rate drop is uncertain. For the Bulls, all the joy is dying. Of course, they will circle the wagons. They will push forth the meme of the "plot points" laid out by the Fed chairman, Jerome Powell. He stated cuts should come this year unless new data changes the plan. We, at Evolution put no faith in the corrupt cabal at the Federal Reserve. Their existence is a disappointment. We use our own data and we always tell you, our Dear Readers, what we see.

Score card

We remind you that inflation moves from one segment to another with its price destruction. This is why we called our economy to be under a "stealth recession." What we now see is the completion of the inflation wave throughout all segments of the economy. It is reaching insurance, home and auto, medical costs in prescriptions, insurance and hospital costs. It is showing up in car repair costs, tires, batteries and related items. Now, the question is will the whole cycle repeat itself or the lie of deflation take center stage?

Remember we predicted workers in unions would strike in 2023. We were correct. One result of the inflation wave is worker unrest due to wages. With that said, we read that Boeing workers will be seeking a 40% raise. That company is run by the worst people. They have taken a great firm to a crisis point. Management's want of riches has the company seeking the cheapest bid for outsourced parts.  Then, we see plug doors flying off the plane's body. In the last contract talks with the Seattle union, the company lied to the workers. They said new work is coming. They moved it South to a non-union state. I could go on and on like the Max Dreamliner? We also feel that government unions will seek higher wages in contract talks.

Banking

We told you before it happened that the Fed's quick and continuous hike cycle would cause banks to have unrealized losses on their books. Now, we see regional banks in the crosshairs of commercial real estate. New York Community Bank is just the start.

COVID-19 killed attendence at the office. High rates caused tenets to seek cheaper locations. The construction loans on skyscrapers is due. Today's higher rates will make projects unprofitable. The combination spells trouble. This problem will take center stage as loans go bust. This will be another disappointment. When they do, regional banks will feel the pain. The Fed will seek to let the "big boys" gobble them up. At the moment banks are closing branch banks to cut costs. This could cushion their coming losses in commercial real estate. Nevertheless, banking failures will happen in 2024. 

Global Economy

We read that Japan and the UK are in recession. China is under their own real estate crisis with high unemployment among young workers. The two wars are not helping supply issues and the fears of trouble spreading is always on everyone's mind. The news motto is, "When it bleeds, it leads." They add to disappointment.

Layoffs and More

We mention in our Odds and Ends pieces of recent layoffs. We feel this latest news adds to the picture. Blackrock is shedding 3% of its labor force. EBay is dropping 1,000. Unit Software is showing the door to 1,800. UPS is laying off 12,000. Flexport announced 2,600 is no longer needed. Pay Pal is dropping 9% or 2,500. Estee Lauder's fragrance is no longer misting 3,100 employees. Docu Sign is laying off 6% of staff and Zoom is shrinking 2% or 150 workers. One more. Paramount Global is giving pink slips to 800 even though the Super Bowl gave it record ratings. The list grows each week. This is not a sign of a strong economy. It adds to disappointment.

Bankruptcy is happening big time in fast food retail. Burger King and Popeye's, two segements of QSR have entered into Chapter 11. A small chain, Izzy's claims rising costs, labor costs and labor shortages for its bankruptcy. This list of disappointment grows each month.

Earnings?

Firms beat by 75%, however, pre-annoucements laid the framework and one can never really trust all these reports. Of the losers, Hasbro reports a 20% drop in revenues with a poor outlook. Bayer is slashing its dividend by 95% to pay down debt. We see more of this with higher interest rates.

Last Word

The complete data on inflation from January 2021 to January 2024 is this:

Overall = 17.9% up.                                                                                                                                    Energy =  32.3% up.                                                                                                                                    Electricity = 27.8% up.                                                                                                                                Food = 20.8% up.                                                                                                                                          Shelter = 19.4% up.

The stock market does not reflect the pain of inflation to the citizens of the nation. Wage increases cannot keep up with the overall effects of inflation. The Federal Reserve by printing easy money is the root cause for inflation. This is why we say, "End the Fed!"      Peace.