The Inverted Yield Curve Is Actually a Good Sign for Stocks

By Robert Ross via Iris.xyz August 14 was the worst day of the year for stocks. The Dow Jones Industrial Average plunged 800 points in a single day. The stock market plunged because of a serious economic warning sign called a yield curve inversion. A yield curve inversion is a canary in the coal mine for the economy. It’s happened before every recession in the last 50 years. However, there’s no reason to panic. An inverted yield curve does not mean a recession is imminent. In fact, the last five times the…

Trump, You’ve Got It All Wrong on Tariffs

By John Mauldin via Iris.xyz I’m going to start with a story. There is a drug produced in China that works well on strokes and numerous other less devastating medical issues. It is derived from pig pancreases or human urine. It isn’t approved in the US due to justifiable regulatory issues, but it is used in Europe as well as China. A small biotechnological firm in the US has the technology to synthesize this drug without using pancreases or urine. This would be safer and cheaper.  The Chinese company agreed…

How to Build a Bond Portfolio That Works

By Jared Dillian via Iris.xyz When you invest in bonds, do you buy individual bonds or bond funds? Unless you have a lot of money, you should probably buy bond funds. And even if you do have a lot of money, you should probably buy bond funds. Let me explain. Little Diversification I have owned individual bonds in the past, for speculative reasons. If you have a brokerage account, they are not that hard to buy. But individual bonds are not as liquid as stocks. The bid-ask spread (a measure of…

The Modern Monetary Theory Could Destroy This Nation

By John Mauldin via Iris.xyz I am back from my 14th annual Maine fishing camp. The private event at Leen’s Lodge is generally called Camp Kotok in honor of David Kotok of Cumberland Advisors who started these outings many years ago. CNBC and others began calling it the “Shadow Fed,” but it is really just a meeting of wickedly smart people focused on economics and markets. (I am allowed to attend for comic relief.) We discussed the world’s problems and the general mood was that many of those problems are beginning to catch up.…

When a 16-YO Earns $3 Million, You Know It’s Not a “Silly Fad”

By Stephen McBride via Iris.xyz A month ago, 25,000 fans packed into the world’s largest tennis stadium in Queens, New York. They came to watch 100 “athletes” compete for the title of the world’s best. Millions more watched online. But they weren’t there to see tennis stars like Serena Williams or Roger Federer. These crowds gathered to watch kids play video games. E-Sports Is Going Mainstream As you may know, professional video gaming—also called “e-sports”—is getting wildly popular. For example, 57 million people recently tuned in to watch the final round of…