Author: Kevin Bae
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The Yield – Week ending June 11, 2021
Rebalancing portfolios, pie charts, inflation fears, oil prices, banks & cash, more inflation news, and much much more
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Inflation surges in May. Highest rate in 13 years
I still believe this is temporary. This inflation is largely caused by government shutdowns and changes in consumer behavior as we adjust to living post-COVID-19. While short term inflation is a pain it’s the long term effect of behavior and government policy that needs to be monitored. Strap in folks! The U.S. economy’s rebound from…
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U.S. Banks to business… stop depositing cash
Turns out banks can’t make money off hoards of cash if businesses aren’t borrowing that same cash. If I were currently running a business and I’m flush with cash there is virtually no risk to borrowing cash for operations. Interest rates are very low which would allow a business to invest its cash and still…
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Options traders betting on $100 per barrel oil
If oil does hit $100/barrel that will not be good for short-term inflationary pressures we’re already seeing. Owners of $100 options—now the most widely owned WTI call contracts on the New York Mercantile Exchange—are making a leveraged bet that oil prices will hurtle higher after already surging more than 40% this year. The roaring rally,…
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Surge in commodity prices bring inflation fears
More of the same inflation drum beat that we need to watch. I still think the current spike is temporary due to the novel shutdowns of the world’s economies due to the pandemic. Once things normalize (whatever that looks like) sometime in 2022 I expect inflation in the U.S. to return to pre-pandemic levels. Many…
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My financial life in pie charts
I thought it might be interesting for people to see my entire asset allocation across stock portfolios, cash, life insurance, and property. Aside from life insurance the assets at highest risk are also the smallest part of the pie. It so happens that the assets at highest risk also provide the highest income. It’s important…