Bike-share companies, among the hottest startups, are wiping out investors.
“It now appears bike sharing is the stupidest business, but the smartest brains of China all tried to get in,” Wu Shenghua, founder of 3Vbike, one of the many collapsed bike-sharing companies in China, told Reuters. “It really now seems ridiculous.”
Afterwards, a lot of the ingenious must-not-question stuff that happened during a bubble is considered “ridiculous.”
Bike-sharing companies are just an example. With their capital-intensive, cash-burning, ride-subsidizing business model, they were, in their short lifespan, among the hottest startups in China. They’ve attracted $2 billion in venture funding in 18 months of frenzy leading into 2017. Over 40 platforms mushroomed out of the ground.
Statistics from the TRON blockchain uploaded to social media by Misha Lederman, cofounder of the cryptocurrency’s spin-off project IAmDecentralized.org, confirmed that the network now features over one million addresses.
TRON, which launched its mainnet earlier this year, seeks to become the go-to ecosystem for developers seeking to create decentralized applications (DApps).
There is no better way to describe what is currently taking place in the U.S. Shale Oil Industry, then a bloodbath. Unfortunately, if the situation wasn’t bad enough for the shale oil industry when prices were 30-40% higher, today it’s a complete disaster. While some might think that a bit of an overstatement, I can assure you that these low oil prices are doing serious damage to an already weakened shale industry.
The major problem with the U.S. shale oil industry from the get-go was that the huge decline rates, indicative of horizontal fracking, devour a massive amount of capital. Furthermore, capital expenditures that are used to frack a shale well is a much different animal than building a gold mine. Because shale oil wells experience a 75-80% decline rate in the first few years, the industry must continue to spend even more capital to offset oil production losses. However, capital spent on a gold mine will last for 15-20+ years before the deposit is depleted.
So, capital spent in the U.S. shale oil industry is not really a long-term investment as would be a gold mine. Thus, the capital expenditures in the shale oil industry behave more like “COSTS” than “INVESTMENTS.”
I believe we’re just at the start of a monster bull market…
But I’m not talking about bonds or U.S. stocks. I believe we’re kicking off a historic bull market in commodities.
The commodities market is highly cyclical. And you don’t want to get caught in a commodities bear. It can be brutal.
But when commodities run up, they really run. In the commodities bull market from 1971 to 1974, the GSCI—an index of 24 exchange-traded futures contracts that represent a large portion of the global commodities market—returned 371%.
And in the 1999 to 2008 bull, the GSCI climbed 454%. I believe that’s the sort of return we can expect in the years ahead.
But there’s one thing making resource investors nervous: the ongoing trade war.
Today, I’ll show you why the trade war can’t stop the commodities bull that’s coming… and how it might actually jumpstart domestic mining in the U.S.
It's becoming a familiar story...
In recent months, the broad U.S. markets have rallied prior to each of the Federal Reserve's policy announcements, only to reverse and close sharply lower after. And this time was no exception...
After rallying as much as 1.1% Wednesday morning, the S&P 500 closed down more than 1.5% after the Fed's decision. The Dow swung from a gain of more than 300 points to a loss of 350. And the tech-heavy Nasdaq again led the way, closing down more than 2% for the day.
For its part, the Fed's announcement was no great surprise...
As markets largely expected, officials voted unanimously to raise short-term interest rates another 0.25 percentage points to a range of 2.25%-2.50%. And as several Fed members had hinted at recently, the central bank also signaled that it will likely stop hiking rates sooner than expected
Hemp just became legal.
I say that because President Trump just signed the 2018 Farm Bill into law.
This bill – which passed through Congress last week – authorizes many expenditures laid out in the 2014 Farm Bill. It also removed industrial hemp from a list of federally controlled substances.
You see, the federal government classified hemp as a Schedule I substance up until today. That put hemp in the same league as heroin and LSD.
It’s completely ridiculous. But that’s now over.
Thanks to Trump, hemp is now considered an “agricultural commodity” like other commercial crops.
• This is great news for American farmers…
The market for hemp is already enormous.
Every year, the U.S. imports around $700 million worth of industrial hemp products. Most of that comes from China and Canada.
Plus, hemp is significantly more profitable to grow than soybeans, corn, or any other major cash crop.
In short, U.S. farmers now get to tap a huge and highly profitable market…and so can you.
One of the largest conferences of the year just wrapped up this past weekend in Katowice, Poland. And it was on everyone’s favorite subject, climate change.
Yes, this is the annual conference where tens of thousands of delegates fly into a foreign town. On your tax dollars. To iron out a plan for the future of the planet.
It’s called the United Nations Climate Change Conference. And this years’ went under the short name of COP24 (Conference of the Parties – 24th edition).
And it was the second biggest one since the monster Paris Climate Change conference back in December 2015 (COP21 for those keeping count).
According to this official attendance list, there were 22,700 delegates from 197 countries there.
This conference was not a weekend or even a week long.
It was hosted for 12 whole days.
But first, all these people had to get to the COP24 Climate Change conference. And unfortunately, zero-emission transit was not available to get them all to Katowice.
There are no bike lanes crossing the Atlantic Ocean or the Mediterranean Sea.
If you think trillions of dollars over dozens and dozens of years is impossible for parties to fight climate change with their vision…
Here’s how Cultural Communists Spent Nearly Half of Billion Dollars in 12 days
I’m known for writing the #1 personal finance book of all-time, but most people recognize me as a “real estate” guy. It’s my personal favorite investment category.
In a civilized world, a roof over your head is as essential as food, clothing, energy, and water. That why there will always be a real estate market. And real estate investors are essential to keeping this vital human need available, from reasonable prices to luxury prices.
Donald Trump once said, “It’s tangible, it’s solid, it’s beautiful, and it’s artistic, from my standpoint. I just love real estate.” I have to agree. Yet, even more than the real estate itself, I love the cash flow.
What I Mean by Real Estate Investing…
There are many different ways a person can participate and prosper with real estate. For most people, their only real estate dealing is where they live—their personal residence.
But what I’m talking about is rental real estate that produces positive cash flow. Cash-flowing real estate not only provides for monthly income that I don’t have to work for but also massive tax benefits—another thing Trump likes about real estate investing.
Volatility can be hard to stomach. Right now, we’re seeing 300 point moves in the Dow Jones index on daily basis… and some of the greatest companies in the world are down more than 30% from their highs.
During volatile markets, it’s vital to have tools in place to lower your overall risk. After all, the last thing you want is to take a 70% loss on any position. And by limiting your losses, you have some dry powder to buy incredible names at significant discounts.
In this special podcast, I break down one of the most important lessons in investing—risk management.
Few people know more about this topic than Dr. Richard Smith, founder and CEO of TradeSmith.
On today’s show, Dr. Smith, who has a PhD in math and systems science, breaks down his favorite risk management techniques… and his strategy to take emotions out of investing. This interview is a must-listen.
Then in my educational segment (55:00), I do the unimaginable… I break down one of my biggest losers of the year. We’ll have losing investments from time to time… but today I show you how I was able to avoid a catastrophic loss for investors by using this one simple risk management technique.
In the year 1157, the Republic of Venice was in the midst of war and in desperate need of funds.
It wasn’t the first time in history that a government needed to borrow money to fight a war. But the Venetians came up with an innovative idea:
Every citizen who loaned money to the government was to receive an official paper certificate guaranteeing that the state would make interest payments.
Those certificates could then be transferred to other people… and the government would make payments to whoever held the certificate at the time.
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In this way, the loan that an investor made to the government essentially became an asset– one that he could sell to another investor in the future.
Debt out the wazoo, but someone is still buying it.
The US gross national debt has ballooned by $1.33 trillion over the past 12 months to $21.8 trillion as of December 14, according to Treasury Department data. Over the past six months alone, this debt has ballooned by $740 billion, despite a strong economy: Fueled by a stupendous spending binge and big-fat tax cuts, the government has been increasing its debt at a rate of $123 billion a month on average over the past six months.
But who’s buying all this debt?
US government debt is an income-producing asset for investors — the creditors of the US. And when the pile of US debt increases, by definition, someone has to buy it. But who? China, Japan, and other foreign investors? Nope. They’re shedding this debt. So here we go.
Foreign investors in total reduced their holdings of marketable Treasury securities in October by $25.6 billion from September, to $6.2 trillion, having shed $125 billion since the end of October 2017, according to the Treasury Department’s TIC data released Monday afternoon.