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Mostrando entradas de junio, 2020

Fed's balance sheet.!

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  Dear Investor...   Coca-Cola. Berkshire Hathaway. Marriot. Phillip Morris.Walmart.     These are just some of the companies whose debt was snapped  up by the Federal Reserve as of mid-June, part of the central Banks unprecedented intervention in credit markets.   What is happening: The Fed disclosed hundreds of millions of dollars in purchases of individual corporate bonds on Sunday, while identifying nearly 800 eligible issuers whose bonds it could buy down the line. This is like the Fed picking up all your debt at the best rate possible, only available for the big players, not mom and pop store owners.   This action by the Federal Reserve has been lauded by investors for easing conditions in credit markets after they rapidly deteriorated in March, avoiding a potentially catastrophic corporate cash crunch that could have triggered a wave of bankruptcies. (Credit CNN Market Flash) ...

Balance de la Fed...✔

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Estimado inversionista ... Coca Cola. Berkshire Hathaway. Marriot. Phillip Morris, Walmart. Estas son solo algunas de las compañías cuya deuda fue absorbida por la Reserva Federal a mediados de junio, parte de la intervención sin precedentes de los bancos centrales en los mercados crediticios. Lo que está sucediendo: la Fed reveló cientos de millones de dólares en compras de bonos corporativos individuales el domingo, al tiempo que identifica a cerca de 800 emisores elegibles cuyos bonos podría comprar en el futuro.   Esto es como la Reserva Federal pagando todas sus deudas personales a la mejor tasa posible, esto estrictamente está disponible para las entidades más grandes, no para los dueños de tiendas o negocios pequeños.   Esta acción de la Reserva Federal ha sido alabada por los inversores por aliviar las condiciones en los mercados de crédito después de que se deterioraron rápida...

The bottom line...What do you think?

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The bottom line...What do you think.? Dear Investor...   More stimulus is coming.! The stock market has rallied lately, like if everything  is perfect. Totally artificially pushed to higher levels on borrowed funds.    Granted, a small group of companies have done well, grocery stores and certain tech companies but the vast majority of others are hurting and facing a long road to recovery.   WITH THE CREATION OF SO MANY DOLLARS ARTIFICIALLY BY GOVERNMENTS, WE ARE FLOODED WITH DOLLARS IN THE WORLD ECONOMY, BEARING IN MIND THAT THIS SITUATION IS NEGATIVELY IMPACTING THE OTHER CURRENCIES IN THE WORLD, THE ONLY WINNER WILL BE THE METALS.   The price tag that we face in the U.S. and Global economy; wi...