Libratus

Libratus

Let's keep it simple. Increase in raw material & production cost-> Decrease in aggregate supply (Suppliers drop out as profit deteriorates)-> Decrease in total production->. If demand remains the same (most likely going to be the case unless there is another stimulus check coming in), then remaining producers/suppliers who now have more pricing power can and...

Libratus

#1. Fidelity Investments has launched its first Bitcoin fund in late Aug. #2. Snappa followed MicroStrategy's footstep by moving a significant amount of cash reserve into Bitcoin in late Aug. #3. New clarification from US OCC clarified the confusion about the banking custody of crypto assets. #4. Just Eat now accepting bitcoin payment in France.

Libratus Updated 

Still a lot of call option buyers out there. Another leg down will probably decrease the implied volatility and reduce the gap between VIX and VXN.

Libratus

ACB, APHA, CGC, CRON, GTBIF, TLRY are in my Cannabis watchlist. I am bullish on APHA and GTBIF. MJ is a more conservative approach to capture the gain with limited downside risk. Ladder buy within the demand zone. Set the stop loss 10% to 15% below the demand zone for the swing to intermediate setup.

Libratus

UMA is another oracle player along with Chainlink and Band. Oracle is the pick and shovel play in the DeFi race.

Libratus

Banks are raising the reserve lvl in anticipation of the rising loan default. Facing weaker loan demand, banks tightened standards across all categories of residential real estate (RRE) loans and across all three consumer loan categories. In addition, banks also tightened their standards and terms on commercial and industrial (C&I) loans to firms of all sizes.

Libratus

In my last post, I talked about the liquidity trap (Banks not lending out enough despite being flooded with cash by Fed) . For loans to households, banks tightened standards across all categories of residential real estate (RRE) loans and across all three consumer loan categories—credit card loans, auto loans, and other consumer loans—over the second quarter of...

Libratus

Even if the purchasing power is rising, without the increase of velocity of money, there will be no inflation and sustained economic growth. Circulation/velocity of money measures the interval between money transactions, decline means less transaction is taking place and the interval between money transactions is getting longer. According to the July 2020 Senior...

Libratus

In order for inflation to occur, people need to have more money to spend on goods.

Libratus

How effective are Fed's monetary policies and tools? Fed has three simple goals- Grow GDP, keep inflation rate steady and keep the unemployment rate low. Some argue that Fed's perceived power over the market was exposed during several occasions- #1. During the 2008 in the midst of sub-prime mortgage crisis, the market continued to plunge despite the Fed's...

Libratus

Evolution of Fed's QE- Treasury/municipal bonds-> corporate bond ETF-> individual corporate bond-> Yield curve control (in potential development)-> Maybe... Individual stocks in the future... As Fed adds more debts to its balance sheet, it hampers its ability to effectively intervene the market in the future. It will need progressively more and more stimulus...

Libratus

Even as Fed balance sheet keeps climbing up and U.S takes on more national debt in the current low-interest rate environment, I am not eager to jump to the premature conclusion and entertain the idea of hyperinflation. I'm not saying that it is improbable, I am just saying that it is an unlikely and low-probability event. Yes, it is a fat tail risk that...

Libratus

Yes, the stock market is overheated judging by all valuation metrics. For those of us who don't want to jump the gun and want to stay in the trend until it is broken, sector ETFs offer better return than major indexes such as S&P 500 and NASDAQ, but are not as volatile as individual stocks. According to Goldman Sach, IT and consumer discretionary have risk...

Libratus

Sure, low yield rate alone doesn’t justify the extremely high valuation of NASDAQ, but many investors may have overlooked other factors that may have contributed to NDX's rise. Quick recap of recent macro events- THE BAD Corporate profits in the United States dropped 11.8 percent to USD 1,569.2 billion in the second half of 2020, following a downwardly...

Libratus

Rich people don't hoard the dollar, neither should you. They put all their money into inflation-hedge assets as dollar continues to depreciates. Put your money into the good use.

Libratus

RUT was the last major index to have the golden cross. Will small cap value ETF (IWN) or small cap growth ETF (SLYG) finally catch up?

Libratus

Namecoin may be the first altcoin, but Litecoin was the first well-known altcoin until Ethereum came along. Grayscale just launched the Litecoin trust and institutional demand is surging as evident by the massive premiums Litecoin trust commands. Litecoin is highly liquid and is still down 84% from its ATH. The breakout may be imminent so it is a good time to...

Libratus

Dash was one of the first few Altcoins bursted onto the scene in 2014 and the second most famous anon coin in terms of transaction volume and active address behind Monero (XMR) even though strictly speaking it is semi-anon because its PrivateSend feature is optional. Dash is one one the few fundamentally sound coins in the top 50 coins in terms of marketcap that...