From Joe
Everything You Need to Know About Money is Now at your Fingertips
I've created a library of training material to teach you how money works so that you can make more money and protect it.
It's more important than ever to understand how to allocate your portfolio to eliminate risk. How to use the advanced options strategies that professionals use to hedge, produce income, and make low-risk trades with huge payoffs. How to get out of debt fast. How to pick the best stocks and make sure you are buying them at a great price.
Members of Heresy Financial University get all of this, and more. As a member you'll get access to every course in the library of training material, and you'll get automatic access to every future course I launch as well.
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News
Prices of a Vital Food, Rice, Just Surged to a Fresh 15-Year High
Rice prices surged to a fresh 15-year high, fueled by strong demand and lingering supply concerns. Thai white rice 5% broken — an Asian benchmark — climbed for a third straight week to reach $659 a ton on Wednesday, according to the Thai Rice Exporters Association. That’s the highest since October 2008 and brings the increase in prices to about 38% this year, after top shipper India restricted exports and dry weather threatened production. Rice is vital to the diets of billions of people in Asia and Africa, and the latest run up in prices could fan inflationary pressures and hike import bills for buyers.
Fed liquidity drains moves spotlight to usage of new lending facility
The traditional turbulence of money markets at year's end could pose a first test for a new and so far largely unused central bank liquidity facility, but a shift to full scale activity likely still lies some time off into next year. Some market participants reckon that the Fed’s Standing Repo Facility, which it formally adopted in 2021, may see some noticeable usage over the turn of the year as traders and investors manage their money during a predictably volatile period. If that happens, it would not be a sign of distress, but of the financial plumbing system working as intended.
Investors have faith in the Fed in 2024, see bank stock comeback, CNBC survey shows
In the final CNBC’s Delivering Alpha Stock Survey poll of the year, the 300 investors, traders and money managers surveyed are behind Jerome Powell and the Federal Reserve. Eighty-eight percent give the Fed an excellent or good score for 2023, that’s better than the 77% from the survey three months ago. More than half believe they’ll start cutting rates in the second quarter of 2024. Those surveyed are mostly planning to put their money in the S&P 500, with 28% saying that would be a main target for them in the new year. Sixteen percent said they’d mostly be investing in Nasdaq 100 stocks.
Modern Portfolio Theory Is Mistaken: Diversification Is Not Investment
According to modern portfolio theory (MPT), financial asset prices always fully reflect all available and relevant information, and any adjustment to new information is virtually instantaneous. Thus, asset prices respond only to the unexpected part of information since the expected portion is already embedded in prices. For example, if the central bank raises interest rates by 0.5 percent, and if market participants anticipated this action, asset prices will reflect this expected increase prior to the central bank’s raising interest rates.