The Government Makes It Rain --- Stimulus To the Rescue

Coronavirus Update – Shutdown Has Finally Started

Thanks to the great leadership exhibited from New York, California, and Chicago the nation is slowly shutting down city by city --- and state by state. While unbelievable, this is very necessary to starve the virus. There will be debates on how long and I remind people to look to China’s recovery and the timeline they used. For example, Wuhan the epicenter of this crisis will remove the lockdown on April 8th. SO the reality is the longer the better for the hotspots. Why I demanded leadership --- one voice, one plan. Providing risk consultation to large corporations puts you in a position to see some amazing dynamics. People will not do thing unless they know the order has come from the top…it appears countries are no different. The shutdown should be federal because if we all go into shelter at the same time, you hope we can plan to exit strategically around the same time. Let me give you an example, if you have a missing child, technology (like the Amber Alert) has allowed for us to receive notification all at the same time rather than piecemeal.  This speeds up the likelihood of finding the child much better than sending it to one police department at a time. If the coronavirus shutdown does not come from the top, when one state recovers my question is: “Does that state allow you to travel or accept visitors from states that did not shutdown at all or that shutdown much later than your state did. Essentially this recovery could drag on longer than needed if we cannot move in a cohesive manner as a country. There could be a lack of trust in the air which is why I believe countries like Italy, China, S. Korea and others when into lockdowns all at once. Make It Rain – Last Resort to Inflate the Economy I am hoping for better coordination so we can begin to recover quicker and get the economy going.  The importance of the pillars we work on so hard here is to help you during these exact moments. If you have savings, you have some cushion during these bad times. See these articles, ripped from the news headlines: “Many Americans Biggest Worry is April 1st Rent and Mortgage Payments”  -- Washington Post “Real Estate Billionaire Barrack says Commercial Mortgages on a brink of Collapse” – Bloomberg “Jobless Claims Soar Past 3 Million to Record High” -- CNBC  “Mortgage Rates Surge to Highest Level Since January” – Marketwatch “2 Trillion Dollar Stimulus Package” --- See below These are just a few of the necessary reasons why the Federal Reserve is making it rain. It’s basically a blank check to shore up the economy until we can get a handle on the COVID-19.  Like in 2008, the market has responded with a rally since a “handshake deal” was announced just a few days ago. This rally will likely continue into the actual signing of the bill. Use this an opportune time to trade in the relief rally that is not uncommon. But when the dust settles, I am still not risking my individual retirement account funds at the moment because we know there is more to come. Mortgages need to be paid, the rent is due, businesses are asking for a bailout and jobs are being shuttered. Hopefully all this is temporary but it is a big risk. I don’t see an all clear sign, just yet. Urb Lesson of the Day:  Account Diversification · Savings Accounts – Gets you through the rough patches in life · Investment Accounts – Allows you to take risks when others are NOT – like today · Individual Retirement Accounts – This is truly for your future, why NOT wait for a sign that the recovery is strong

My Predictions On the Upcoming War... (Free Picks Included)

Well I had a very interesting discussion last week on wars...and that was in a bar, so I figured I'd keep going I guess.  I could talk about North Korea but I'd rather talk about a different possible war.  I started off believing that only athletes and musicians "make it rain" and usually in dimly lit places :)

At Urbanomics, we don't leave you out in the cold, here is a quick definition from URBANDICTIONARY.COM:

Make It Rain: When you're in the club with a stack, and you throw the money up in the air... The effect is that it seems to be raining money. 

Then, I learned about Central Bankers around the world and their endless access to cash and they put guys like Lil Wayne, Adam 'Pacman' Jones, and P. Diddy to shame.  Central Bankers (around the world) are the equivalent to the US version of Ben Bernanke, the head of the Federal Reserve.  Earlier this year, I wrote about Ben and how some very smart investors (see David Tepper, Ray Dalio) were telling us that when the Fed 'makes it rain' it's our job to pick up the money and buy stocks.  We did just that and we've rode the stock market ALL THE WAY up to all time highs in the Dow Jones Industrial Average and the SP500.

Here is where the war begins...other countries don't usually like when one country prints money because their goods become cheaper and the people across the world begin buying those cheaper goods and so far this has helped the US economy. So guess what they in turn do...THAT'S RIGHT, they sometimes do the exact same thing.  So who is ready for battle, see JAPAN.  They have an official that has promised to 'make it rain' at levels that only we've seen in here in America.  Here's why I find this interesting...and how we make money:

1st Quarter 2013: PREMIUM STOCK ALERTS

1st Quarter 2013: 3 PREMIUM STOCK ALERTS

Please contact me directly (email_urbanomics@yahoo.com) to subscribe to this quarter’s premium stock alerts.  Find out what I have my eye on and more importantly when I will be adding these stocks to my portfolio.

1st Quarter 2013 Premium Stock Alerts

My 1st quarter picks are FINALLY OUT. I’ve been researching these stocks over the course of the last 3 months and found 3 stocks with margin of safety and the right catalysts.  Please see the following stocks that were sent to subscribers receiving premium alerts.

Stock #1: **********

Details

Sector: Financial Industry: ????? Tip I've got Montrose...and I'll even count Benton

Stock #2: **********

Details

Sector: Consumer Goods Industry: ????? Tip You need 1 for March Madness...

Stock #3: **********

Details

Sector: Basic Materials Industry: Oil and Gas Tip In Texas "Its The Law"

Its March and my newest picks are finally out. The Fed is 'Making It Rain' money and stocks will continue to do well. But I only really like stocks that have been beaten down...like they stole something. So its really getting difficult to find a lot of discounts. More stock reveals coming soon.

Dow At 14000 (Pt.2) - The Markets Are Going Higher!?!

You heard it here, the markets are going higher!  Okay that was in my best Jim Cramer voice.  In reality, I am actually a little nervous about the markets.  I guess I start to get nervous when family and friends usually begin to take more interest in stocks.  Usually by the time my sister is talking about the markets it means that its probably moved significantly HIGHER and she along with other non-investors are late to the party.  If you followed my last post on the Dow @ 14000 I gave you a video from billionaire investor, David Tepper.  That video was from September 24, 2010 and in that video he indicated WHY the markets were going to go up. Since September 2010 until now, the markets have soared up over 31%.  Yes believe it or not, I actually listened to this video when Tepper made his revelation that markets would go up because the Federal Reserve was continuing quantitative easing (QE). I won't bore you with what QE means, but my best analogy is he was saying the Fed is 'Making It Rain' in the club.  And think about what happens to the person that benefits when its raining money in the club...the next day they go shopping.  Well when the Fed 'Makes It Rain' on our economy guess what goes up, yes: STOCKS.  Which is why he was telling us to buy back then.  So in my mind...if you weren't picking up stocks back then you are a little late to the party and you do need to be mindful of this.

The next question is where do we go from here at Dow 14000.  Well listen to our friend David Tepper on December 17, 2012 about where he thinks the markets are headed now.


Listen for the following beginning at 2:02 in the video:
- He talks about tailwinds or good things going for the economy (Housing, Car Sales)
- There is 1 Trillion Dollars Worth of Stimulus Coming from the Fed
- The Fed will keep it up until the Unemployment (Jobs) Rate Drops to 6.5% Target

I would say he is in the camp of markets going higher until the Fed stops. And considering that the Job Rate is at 7.9%, maybe the markets go HIGHER.  But one thing I've learned is markets don't go straight up...so tread carefully.  But he's not alone, my ears perked up when I heard that Ray Dalio shared a similar point of view...stay tuned.