Another Big Box Retailer Bites The Dust

(8/31/2024)

Retail Industry Struggles

1. Big Lots, with 1,400 stores nationwide, faces potential bankruptcy as sales and shares plummet, with stock falling nearly 99% from $70 in mid-2021.

2. The company's debt-based business model and the tax code incentivizing annual spending make it vulnerable to financial attacks.

Consumer Economic Trends

3. A persistent consumer downturn is evident, with Dollar General missing expectations and citing financially constrained core customers .

4. The FED is expected to initiate an interest rate cutting cycle on September 18th , often signaling an economic downturn.

Broader Economic Implications

5. The collapse of Big Lots and other retailers indicates a wrong direction for the economy, highlighting consumer financial constraints and vulnerabilities in debt-based business models .

ALL HELL IS BREAKING LOOSE IN AURORA

(8/30/2024)

Migrant Activity and Public Safety

🏢Venezuelan migrant gangs have allegedly taken over apartment buildings in Aurora, Colorado , brandishing semi-automatic weapons and high-powered rifles , despite the governor's denial of such takeovers.

🚨The influx of migrants into Denver suburbs has led to increased activity from the Venezuelan prison gang , affecting neighboring cities that don't share Sanctuary City policies .

Self-Defense and Preparedness

🔫Families are advised to own a tactical handgun and receive proper training, as hammers are reportedly the #1 weapon used in violent crimes.

🥫In preparation for potential economic collapse and social unrest, families should stockpile a month's worth of emergency food , a water filter , and be armed for self-protection.

Government and Economic Concerns

💸The government is allegedly spending $150 billion of taxpayer money on services for 20 million illegal migrants , including offering $150,000 loans for home purchases in California.

JP Morgan Says Get Ready For The Bond Move

(8/30/2024)

• ⚠️ The supposed interest rate drop will actually make inflation worse and force rates to revert back to much higher levels to stop inflation.

• 🚨 Investors can't depend on the T-bill and chill strategy for much longer, according to JP Morgan.

• 💸 If interest rates go down, the value of your existing bond actually increases, making it more valuable to sell.

• 📉 JP Morgan expects the 3-month bill rate to drop from 5.4 to 3.5 over the next 18 months.

• ⚠️ JP Morgan suggests investors reposition as T-bills have a history of underperforming long-dated bonds when interest rates move lower.

• 📈 Inflation is created by governments printing money and Central Banks manipulating interest rates.

• 🚨 The window to capture attractive yields with core bond yields at 4.4% is rapidly closing as longer dated maturities are at good rates and short-term rates are expected to dive down.

The Buyers Strike Has Begun

(8/29/2024)

• 🏠 Home buyers are on a strike, which is a crucial topic to discuss at this point in the cycle.

• 📉 When buyers stop buying homes, despite lower mortgage rates, it indicates a significant problem, but also reveals new opportunities.

• 📉 The price of condominiums in a particular area doubled in six years, from $350,000 to $750-$800,000, but then inventory exploded by 3.5 times in the last 5 months.

• 🚨 Pending home sales, a forward-looking indicator of closed sales, dropped by 5.5% in July from June and 88.5% from a year ago.

• 📉 This next crash is going to be an epic opportunity to make lots and lots of money and I'm going to do exactly what a lot of people did during the Great Depression to become uber wealthy.

• 📚 A good teacher warns you about the impending impact, "If you keep walking on this trajectory, you are going to impact face to wall in about 3.5 seconds."

• 📉 The buyer of real estate is not using fundamentals to purchase real estate, they're using emotion.

• 📉 Two or more listings out of 10 will have a price reduction of 5 to 10% in the first 35 days, which is a sign of a crash.