The 2020 crash might only be the warmup act

The two worst bear markets of all time - the Great Depression and Japan’s Lost Decade — Photo by Zdeněk Macháček on Unsplash

The world has a problem — interest rates are at or near zero throughout North America, Europe, and Japan. Unable to move interest rates lower, governments and central banks need to spend their way out of the current recession without triggering too much inflation.

It’s a tricky balancing act governments have famously failed at before.

You see, we’re not exactly in uncharted waters. Twice before in history, worldwide markets have experienced a sharp, deep, unexpected sell-off (like we experience in 2020), followed by a long rally and then a more gradual, but much deeper, multi-year bear market.

Today, we…

3 ways the pandemic has rewarded crazy and punished cautious

rewarding crazy and punishing cautious — Photo by Oliver Sjöström on Unsplash

If you’ve been thinking;

After the pandemic, I really don’t want to go back to the office full time. Life is too short. I’ve got to make a major change – do something meaningful with my life ’ …

… you’re not alone.

According to Kevin Roose at the New York Times, a combination of corporate burn-out, stay-at-home-savings, easy stock market money, and stories about fortunes being made in NFTs, cryptocurrency, and meme stocks are making Millenials rethink their life choices.

As Kevin summarized so succinctly;

‘Individual YOLO decisions can be chalked up to many factors: cabin fever, low…

Enride’s cabless autonomous battery-powered Pod looks like the future

Einride Pod — the future of semi-truck design?

Video killed the radio star

You can’t take anything away from Elon Musk. Although he didn’t found Tesla or even come up with the idea for an electric vehicle, Elon Musk has nearly singlehandedly taken electric vehicles (EVs) from the realm of science fiction to science fact. In another couple of decades (or less), Tesla will go down in history as the company that killed the internal combustion engine (ICE).

Yet even though the EV revolution is well underway, EV body design has not strayed very far from ICE body design. It’s almost certainly a waste of space and weight, but Tesla probably felt…

The 4 main reasons we should bet on better buying opportunities later this year

Photo by Cleyton Ewerton on Unsplash

After peaking in January, many of the most volatile technology stocks have sold off sharply. Many investors are wondering if this might be a good time to load up on technology names. It could be, but we haven’t seen mega-cap technology sell-off much at all and in fact, many tech names are at or near all-time highs.

The problem is, with the pandemic starting to wane, many analysts and economists expect some sort of correction sometime in 2021. History tells us if we do experience a serious correction, mega-cap is likely to sell off sharply, as it always has…

There’s no war-ravaged Europe for the US to exploit this time around

Buster Keaton — One of the great comedians, stuntmen, and film directors of the 1920s silent-film era. His career ended in tears just like the Roaring 20s did for so many investors, as the silent film era transitioned to ‘talkies’ in the late 1920s.

We’ve been told the 2020 pandemic has caused incredible, pent-up consumer demand. Naturally, if this is true we should assume this consumer demand will result in an economic explosion as people go back to their natural spending habits – post-vaccination. Many experts support this idea by pointing to how the 1918 Spanish Flu pandemic created incredible consumer demand and how the economy exploded for a decade after that previous pandemic ended.

However, thoughtful investors can’t be faulted for asking themselves, ‘How is it that the world economy is stronger in 2021 than it was before the pandemic?’.

5 Investing Tips From The Greatest Crook Of Our Generation

I’m sorry honey … I don’t know why I said, ‘it would be stupid to take even a little profit off the table’. Photo by Tessa Rampersad on Unsplash

Most economists now believe the economy will explode in the second half of 2021 as more and more people receive the vaccination. However, economists and analysts are split on what this means for the stock market.

The Federal Reserve says the US economy is expected to grow faster than originally forecast, and inflation ‘will be transitory’ and Goldman Sachs says ‘we’re not in a bubble and investors should just relax’. However, plenty of economists are pointing out serious warning signs like over-inflated stock prices and pockets of potentially stock market-damaging inflation. Larry Summers, the former Under Secretary of the…

3 leading indicators signal more pain to come

Photo by Uriel Soberanes on Unsplash

Both large and small-cap technology stock prices exploded in 2020. By offering the exact solutions office workers needed to work from home, technology companies were able to achieve unprecedented profits.

Yet, with the pandemic coming to an end, both economists and analysts are trying to figure out if the recent pullback in technology stock prices is simply a breather before stocks go higher or a sign of more downward pressure.

However, there’s a third possibility keeping technology stock investors up at night. Standing in broad daylight are three leading indicators suggesting, even after the recent correction, there is still…

4 stories cheerleaders repeat in every stock market bubble

Stock markets have retreated with shocking speed over the past few weeks and you’re probably wondering if you should buy the dip, take profit, or just wait and see what happens. With all the CNBC and social media noise, it’s incredibly hard to know the right thing to do.

The market pros look completely discombobulated. For one example — even though Tesla has fallen around 30% to just under $600 in little more than a month, the world-leading EV company was recently given a neutral rating and a $150 target by Roth Capital. What does this new rating mean…

Staying home for our safety has caused a dangerous liquidity trap to form

Gotta finish this report before I turn on the TV — Photo by Mahmud Ahsan on Unsplash

Almost everyone I talk to loves working from home. What’s not to love? No commute, no dry cleaning bills, rescheduling meetings is way easier, and there’s no need to pretend to be busy when your boss is around. No doubt, personal productivity, and convenience have increased.

The problem is, working from home is causing us to spend less money. When you combine a high savings rate with extremely low-interest rates and an economic recession, a liquidity trap can form. Compounding the problem, many companies are thinking of continuing the work-from-home trend. There’s talk of a four-day workweek. Facebook looks…

2 times central banks got interest rate hike timing wrong

If you’re worried about when the Federal Reserve will raise interest rates, join the crowd. With a limited number of ambiguous historical examples to guide them, rapidly shifting financial data, and new levels of financial complexity, the Federal Reserve must somehow thread a very fine needle.

On one hand, Jerome Powell insists he’s not even thinking about raising interest rates and rates will stay low for however long it takes’.

Edward Iftody

Edward Iftody is a Communication Coach, author of Surviving Work, a veteran of the Canadian fin-tech industry and a blockchain enthusiast.

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