Category Archives: Economy

ELFA Says Confidence and Capital Investment on the Rise

Economy, ,
Illustration from Pixabay
Illustration from Pixabay

According to the Equipment Leasing and Finance Association (ELFA) there was a 20 percent rise in the amount US companies borrowed for capital investment in the month of December, compared to the same time one year ago.

In addition, there was a 90 percent rise in new loans, leases and lines of credit since last month, to the amount of $12.9 billion.

ELFA Chief Executive William Sutton said in a statement that, “…the equipment finance industry appears poised for the breakout performance industry observers have been waiting for.”

ELFA is a Washington-based trade association that reports on economic data for the equipment finance sector, a $903 billion industry. Credit approvals were done in December compared to November, from 79.1 percent in November to 78.6 percent in December.

The non-profit affiliate of ELFA, the Equipment Leasing & Finance Foundation, said its confidence index went up in January to 66.1 compared to 63.4 in the previous month. According to the foundation any figure over 50 indicates a positive view of the economic future.

Sales Drop While Business Inventories Rise for Second Consecutive Month

Economy, ,
Inventories up, sales down in October and November
Inventories up, sales down in October and November

The Commerce Department announced on Wednesday the US business inventories rose during the month of November while sales fell for the second month in a row.

Business inventories grew by 0.2 percent, a figure that is consistent with the expectations of economists.  The number also followed a similar gain in October.

Inventories are an important part of the total gross domestic product. Excluding cars, retail inventories went up by 0.1 percent after posting a gain of 0.3 percent in October.

In November sales shrunk by 0.2 percent and 0.3 percent in October. It would take approximately 1.31 months for businesses to clear their shelves is sales continued at November’s tempo.

Why is Porter Stansberry Worried about How We Sell Stocks?

Economy, , , ,

The Stansberry Research 12th annual Alliance Conference took place recently in the Dominican Republic and was covered by Amber Lee Mason for the DailyWealth Trader. She reports that she talked and discussed with many important people in the field from Jim Rogers and Jim Rickards to Marty Fridson and others. The major take-away, however, for her came from Porter Stansberry.

During a panel discussion the topic of selling was raised and she explained that Porter Stansberry is concerned. As Mason explained, “when you make these trades, you’re signing up for only PART of the upside on the stock… but you’re exposed to ALL of the downside.”

Mason goes on to explain her interpretation of why Porter Stansberry is worried. She explains that some readers are selling options the wrong way and are going to lose a lot of money. As she explains,

“When these ‘boom and bust’ stocks boom, they can rise hundreds of percent. When they bust, they can fall by half. Because these stocks are much more volatile than our ‘great businesses at good prices,’ these readers can collect much larger option premiums. They can easily find instant payouts of 10% or more… which would add up to huge annualized returns. But they’re still getting only PART of the upside… while exposing themselves to ALL of the downside. And these types of stocks have a LOT of downside.”

This, she explains, is why Mr. Stansberry is worried. He doesn’t want readers to hurt themselves or their pockets by selling options the wrong way. Mason urges her readers not to trade for income until they know what they are doing and that they are doing it the right way.

Thinking Out of the Box: Making a Business Out of Art

Economy, , , , , ,

festival_del_soleTwo concepts of “slow” have been around quite a while now: slow food (in Italy and France) and slow fashion. Barrett Wissman, of Los Angeles, California, is now bringing us a third: slow entertainment. Wissman believes that with this, a “broader cultural understanding between people [will develop which will] contribute to the appreciation of what makes us human beings again.”

A columnist for Forbes, businessman and art appreciator, Wissman has over the years, made art into a business while providing greater access for all. Through his backing of IMG artists and creation of the Abu Dhabi Festival, Festival Del Sole, the Placido Dominigo Festival and Tribeca Firenze, Wissman has begun providing a truly rich, cultural experience for the increasing number of participants his festivals attract.

And it is a business as well. Wissman has had to very carefully find just the right artists from a whole array of different disciplines who will make the most of their talents during these festivals. But it’s not just as simple as that. He takes it a step further. Wissman gets these artists to step out of their comfort zone and show their talents in those disciplines in which they are not usually performing. One classic example of how he did this was when Robert Redford recited poetry accompanied by an orchestra; a clear example of thinking outside of the box.

When describing Wissman and his plans, Eluxe Magazine said, “Beethoven once said that “music is the mediator between spiritual and sensual life,” and Wissman seems to have embraced this notion fully. These events aren’t intended to lightly entertain; they’re not meant to be half-ignored whilst patrons film them on iPhones then Tweet and Instagram their demi-experiences around the world. No, with their magical mixtures of music, poetry, art, culinary experiences, wine tasting, vineyard explorations, lectures on music, yoga and Chinese medicine, these festivals are a full-on, sensual—and  even spiritual—experience. ”

As is common when thinking outside of the box, likewise with what Wissman has found – something quite magical occurs. As Wissman himself explains: “these events create electricity; they exist in an instant that will never happen again.”

Sell-Off Sends Canadian Dollar Into Slump

Economy, , , , ,
Canadian Dollar is called the loonie out of respect for the bird on the reverse side
Canadian Dollar is called the loonie out of respect for the bird on the reverse side

The Canadian dollar, also known as the loonie, sunk to its lowest exchange rate in five years, bottoming out at 87.88 cents to every US dollar. That was the smallest rate for the loonie since July 2009. By the end of the day on October 15 the loonie popped back a bit to 88.58 cents.

The Canadian dollar’s downfall is attributed to a market sell-off that is taking prices down for anything connected in any way with crude oil. Canada’s dollar was doing just fine until about a month ago when the price of oil began to head south. It was not long ago, only July, when the North American oil benchmark known as West Texas Intermediate, or WTI, was selling for $105 per barrel. Today the price has fallen down to $81/barrel, a shrinkage of 22 percent in just one quarter.

In recent times, at least as far as currencies go, “oil” and “Canada” are basically synonymous terms, and it’s the Canadian dollar which is bearing the brunt of the downturn.

“The weakness in oil prices is spilling over in a nasty fashion in Canada,” said Mark Chandler of RBC Dominion Securities.  “The more oil prices fall, the more [the loonie will drop],” Jeremy Stretch at CIBC added.