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.