Here are the latest news items and commentary on current economics news, market trends, stocks, investing opportunities, and the precious metals markets. We also cover hedges, derivatives, and obscura. Most of these items are from the “tangibles heavy” contrarian perspective of SurvivalBlog’s Founder and Senior Editor, JWR. Today, we look at the heavy truck market, as an economic indicator. (See the Economy & Finance section.)
A fascinating piece by Lyn Alden, over at Gold-Eagle: Gold Price Forecast: A Weaker Dollar Is The Easiest Path To $2,000 Gold
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Economy & Finance:
My wife (Avalanche Lily) suggested this: 2020 FINANCIAL CRISIS — Has it started? The $500 Billion Dollar Question
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Is the Fed’s $3 Trillion in Loans to Trading Houses on Wall Street Legal? (Thanks to G.P. for the link.)
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At Wolf Street: Turmoil in the Heavy-Truck Market as Seen by a Truck Dealer. The piece begins:
“‘On our lots, there are no lookers for used sleepers, and we will sell new sleepers at a loss to clear them out, and new orders for sleepers have come to a stop,’ a heavy truck dealer who owns two stores with several franchises told me. The truck dealer was talking about the turmoil in the heavy-truck business, where orders for new Class-8 trucks have collapsed by as much as 80% year-over-year…”
Reader H.L. sent this: Americans Are Back To Using Their Home Prices As ATMs: Most Cash Pulled Out in 12 Years!
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OilPrice News reports: The 10 Most Important Oil Market Trends For 2020
At Zero Hedge: Even Goldman Bristles As Junk Bond Rally Smashes All Records.
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Bond Market Outlook: Treasury Yields May Rise in 2020. Here is a snippet:
“Bond investors have enjoyed strong returns in 2019. The steep drop in yields and declining credit spreads (the yield difference between corporate bonds and Treasuries of the same maturity) combined to boost returns in a wide range of fixed income asset classes. In 2020, we expect returns to be more subdued. From current levels, yields are likely to move modestly higher, while there isn’t much room for credit spreads to fall further. Consequently, we expect returns to be in line with the current income offered on bonds, while price gains are likely to be limited. “
There is already some conjecture on the planned mining reward “halving” of Bitcoin on May 14, 2020. This next reduction will drop the incentive for miners down to 6.25 bitcoins per block. (It is presently 12.5 per block.) I posit that this next BTC halving (or “halvening”) will actually benefit Ethereum more than Bitcoin, since many miners might switch over. Presently, Ethereum is the most profitable e-coin to mine. But after the May 14, 2020 BTC halving, Ethereum will become even more profitable, at least in relative terms. I believe that will focus more attention on Ethereum.
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More, on the same topic: Relying on Bitcoin’s Halving Price Pump Could Be a Huge Mistake, Warns Asset Manager
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Please send your economics and investing news tips to JWR. (Either via e-mail of via our Contact form.) These are often especially relevant, because they come from folks who closely watch specific markets. If you spot any news that would be of interest to SurvivalBlog readers, then please send it in. News from local news outlets that is missed by the news wire services is especially appreciated. And it need not be only about commodities and precious metals. Thanks!