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 Bill Hwang (pictured) and the huge Archegos margin call debacle. (See the Economy & Finance section.)
Precious Metals:
Back in 2016, I advised SurvivalBlog readers to buy Rhodium. It was then at about $670 per ounce. I just checked, and it is presently selling for $25,000 per ounce. Not a bad return on investment!
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Why Is Silver Outperforming Gold?
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Congressman Mooney Introduces Bill To End Federal Taxes On Gold And Silver.
Economy & Finance:
How The Archegos Affair Could Look More Like 2008 than 1998: What Investors Should Watch
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Pierre Briançon: These banking giants are headed to major losses after Archegos debacle.
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At Zero Hedge: Archegos? Argh, Chaos More Like.
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According to ValueWalk, Bill Hwang had some previous troubles: Bill Hwang — Tiger Asia
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Archegos Implosion is a Sign of Massive Stock Market Leverage that Stays Hidden until it Blows Up and Hits the Banks. An excerpt:
“The implosion of an undisclosed hedge fund, now widely reported to be Archegos Capital Management, is hitting the stocks of banks that served as prime brokers to the fund. The highly leveraged derivative positions, based on stocks, had blown up spectacularly. Banks get into these risky leveraged deals because they generate enormous amounts of profit – until they blow up and banks get hit as counterparties.”
JWR’s Comment: Yep, some more derivatives counterparty risk for you to catalog…
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Is Hyperinflation Really A Threat?
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Another at Wolf Street: The Explosive Surge of Mortgages for “Second Homes”: Housing Bubble Math
Commodities:
H.L. sent us this: “Nightmare” Of Factors Pushing World Into Coffee Deficit.
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Inverse reports: The Global Semiconductor Shortage. (Thanks to Jim L. for the link.)
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Lumber prices are so high that many builders are holding back on construction.
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Copper demand from auto industry expected to double as EVs ramp up
Equities:
At Seeking Alpha: Hedge funds selling the most since December: At the Open
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Over at the CNBC Perpetual Cheering Section: Powell and Yellen agree valuations in the market may be high, but aren’t worried about stability.
Forex & Cryptos:
US Dollar’s Status as Dominant “Global Reserve Currency” Drops to 25-Year Low
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Fed’s Powell: Would pursue digital currency only with Congressional support.
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Tesla crypto move called seminal moment for Bitcoin.
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Bitcoin Analyst Warns About “Overheated Retail Action” as Price Hits $60K
Tangibles Investing:
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Our own Pat Cascio flagged this news item: Winchester Announces 2021 Price Increases on Ammunition and Reloading Supplies.
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What’s Behind the Stunning Spike in Used Vehicle Auction Prices? JWR’s Comment: This is more evidence that the tangibles buying power of the U.S. Dollar is diving. At this stage, mass inflation seems likely.
Provisos:
SurvivalBlog and its Editors are not paid investment counselors or advisers. Please see our Provisos page for our detailed disclaimers.
News Tips:
Please send your economics and investing news tips to JWR. (Either via e-mail or 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 items from local news outlets that are missed by the news wire services are especially appreciated. And it need not be only about commodities and precious metals. Thanks!