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Appetizer To wet your appetite
The Gold standard. NOT? ???
Gold and the S&P 500 saw considerable price gains during the past decade, albeit in different ways.
The price of gold has performed rather well over the past decade, with an increase from over $1,400 per ounce in May 2011 to over $1,800 in May 2021. This is around a 29% rise over the previous decade. Gold's price rise during this time period may have been influenced by the asset's reputation as a haven from inflation and political unpredictability.
Significant growth has also been noted in the S&P 500, an index of 500 large-cap US firms, during the past decade. Over the course of a decade, from May 2011 to May 2021, the index increased by over 214%, from around 1,340 to over 4,200. Several factors, including the recovery from the global financial crisis, the growth of the technology sector, and monetary and fiscal stimulus measures, have contributed to this expansion.
Gold and the S&P 500 have both performed well over the past decade, but each has its place in a diversified portfolio. While the S&P 500 represents the performance of the US stock market and is often used as a measure of the broader economy, gold is often used as a diversification tool and a hedge against uncertainty and volatility.
In sum, gold and the S&P 500 have both experienced considerable price gains over the past decade, albeit due to different factors. Both assets offer diversity and exposure to varying market circumstances, so investors may want to look at both.
A Little Salad: Where is the Market?
Year to date.
May 1st
Dow +2.76%
S&P500 +8.99%
Nasdq +16.68 %
Gold $ 1,994.08 + 7.89 YTD
Bitcoin +68.8 %YTD
Main course:
Is Elon correct?
Elon Musk predicts a commercial real estate meltdown.
Tesla and SpaceX CEO Elon Musk has tweeted that the commercial real estate (CRE) debt market is “by far the most serious looming issue” for the economy " He also stated that mortgages are in peril as well.
Commercial real estate (CRE) refers to properties utilized for commercial purposes, such as offices, retail stores, hotels, and warehouses. Because of the COVID-19 epidemic and its aftermath, demand and occupancy for these properties have decreased, resulting in lower rentals and values. Simultaneously, interest rates have risen dramatically, making it more difficult for borrowers to repay or refinance their loans.
According to the Kobeissi Letter, a global capital markets monthly, more than $2.5 trillion in CRE debt will expire over the next five years, significantly more than in any previous five-year period in history. Small banks hold the majority of these loans, which could result in losses and liquidity problems if borrowers default or CRE values drop below the loan value.
Musk said that Silicon Valley Bank (SVB), which failed overnight on March 10, 2023, was a big lender to the tech industry with a large exposure to commercial real estate loans. The fall of SVB caused a bank run and an FDIC regulatory intervention.
Musk also projected that rising interest rates will cause housing values to fall, making mortgages more expensive and unattainable for many purchasers. He predicted that banks' commercial and residential portfolios would suffer loan losses.
A CRE market and banking system crisis might have significant spillover effects on other sectors of the economy and impair financial stability. Some economists and investors have accused the Federal Reserve of keeping interest rates artificially low for far too long.
Dessert interesting money news
Colonel Harland David Sanders, the founder of the fast food chicken restaurant chain Kentucky Fried Chicken (KFC), started the company at the age of 62 [3]. He began franchising the business in 1952, and by the mid-1960s, KFC had become one of the largest fast food chains in the United States [1]. Colonel Sanders continued to serve as the company's brand ambassador and spokesperson until his death in 1980 at the age of 90 [2]. His name and image remain iconic symbols of the KFC brand.
1)URL: https://en.wikipedia.org/wiki/Colonel_Sanders
2)URL: https://www.biography.com/business-leaders/colonel-harland-sanders 3) URL: https://www.mensxp.com/work-life/career-growth/35720-never-forget-that-colonel-sanders-was-62-years-old-when-he-started-the-world-famous-kfc.html
Kevin O'Leary shares his thoughts on a range of topics in this video. He discusses the importance of complying with regulators, the CZ-Binance situation, the Trump-Biden rematch, and Disney's CEO Bob Iger's mistake, among other things. He also talks about the Employee Retention Credit program and advises small business owners to take advantage of it. O'Leary stresses the importance of backing up statements with facts and research in television and warns about media networks pushing their own narratives. He further talks about his wondertrust.com initiative, which helps companies apply for the Employee Retention Credit program
Disclaimer: None of the information here is financial advice. This newsletter is for informational purposes only and not to be used as investment advice or a solicitation to buy or sell any assets. Any and all financial decisions you make should be carefully researched on your own or discussed with a financial advisor.
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