Tag Archives: Mario Draghi

Draghi Comes Through … Hollywood (The Brain) on Stage Next Week …. Travels

Mario Draghi, the European Central Bank President (think Janet Yellen of collection of European countries bound together forming the Euro) made a splash in his speech. Cleverly, he instituted Quantitative Easing (QE), asset purchases to spur the economies in an amount greater than a leaked level earlier in the week.

Markets applauded… now let’s show them the money !

Perception can become reality. The ECB wants growth, and will not stop until they get it …

A positive result would be good for the World economy!

Donald “The Brain” AKA Hollywood takes the stageDCHeadshot

Next week Donald gets to show his stuff in front of a terrific group of fellow advisors. In true Hollywood form (career is taking off) he has been asked to do a 30 minute video too !  Wow…  U Da Man! Well Done

Travels

The afore-mentioned event will take us both out of the office (not to worry, separate planes!) most of next week.  Thanks to technology and Cathy here on the ground we will not miss a beat.

Have a great Friday and enjoy your weekend.

John A. Kvale CFA, CFP

PS Tons to talk about.. trying not to overwhelm, but no promises…haha

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

 

Switzerland Let the Peg Go … Travels – Out Monday

At 3 am Dallas time yesterday, Switzerland did something they promised just two days prior they would not do …. Unpeg their currency. Immediately their currency gained almost 20%. This has already put several foreign currency firms out of business.Switzerland

Mario Draghi, European Central Bank Chief is now expected to start his own Quantitative Easing (forcing money into the system to spur growth.)

Next week, 22cnd all eyes will be on his actions… should be very interesting.

I am on the road, out-of-state. Monday the office will be closed as well as banks and capital markets in honor of MLK day!

Enjoy your weekend,

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com

http://www.street-cents.com

8222 Douglas Ave # 590

Dallas, TX 75225

 

Meeting with Axel Merk, World Economic Update

As mentioned earlier, Axel Merk, founder of the Merk Funds, a huge complex of currency Mutual funds, was in Dallas last week, and took time to come by the office and catch up.

A Few Interesting Items from Our Conversation

While our visit was brief (thanks again for the time), we were able to catch up on the World Economic situation in great detail.

Let’s start with our back yard, as Axel had recently co-chaired an event with Alan Greenspan in which Greenspan had some rather candid comments.

Greenspan, Federal Reserve, Inflation

  • Federal reserve does what congress asks (this may seem obvious, but recall they are supposedly “independent” …maybe not)
  • Question spawned from the above point, “Does this jeopardize the FED’s independence?” “I never said the Federal Reserve was independent” was Greenspan’s response (hmmm)
  • According to Axel, Greenspan stated inflation will HAVE to rise in the future and Gold will be much higher (our thoughts, bring it on!)

Moving On to Japan; Going all in

  • Axel believes Haruhiko Kuroda went all in recently in announcing huge purchases of securities to lower interest rates, of which we took note here, will be a failure (we are not so sure)
  • Japan will continue to debase its currency as long as possible, according to Merk
  • Interestingly, Sinzo Abe, Japan’s version of the president, if unsuccessful will fade into the sunset leaving very little dust if Axel’s vision come true

European Union; better late than never

  •  Mario Draghi (president of European Union) and company are on more on the right track according to Axel
  • They were very late in this economic cycle of getting started
  • Draghi’s attempt to do an American/Japan version of QE (purchase of assets to lower interest rates) is very difficult because of so many fragmented countries
  • France and Spain, according to Merk are not so good

What does it all mean?

Most interesting for me was the firm conviction of eventual inflation. We have been watching for it for some time and think a sip would be nice.

Time will tell.

Oh…here is a pretty cool chart from Axel’s group. This should make 2015 more interesting as the blue line will no longer be rising.

Merk Fed and S and P

Have a Great Day!

John A. Kvale CFA, CFP
www.jkfinancialinc.com
www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

Draghi throws cold Ice on Euro … New Videos … New Mug Shot (yikes!)

While only a partial week with the holiday shortened Monday, there were a lot of events that occurred.

Mario Draghi In the House

ECB (European Central Bank) Chief Mario Draghi announced more cowbell stimulus

  • EU Marginal Lending rate cut from .4 to .3%
  • EU Refinancing Rate from .15 to .05%
  • EU Bank Deposit rate from …. -.1 to -.2% … yes you read that correct, Negative

Care to guess when the announcement was made?

Euro USD

Recall, most countries like their currency being WEAKER as it makes exporting more competitive, although a headwind for imports.

Euro < 130 .. More to come ? Sure looks like it !

All New Helpful Videos

Given client continued usage of our web pages, this blog site, and new technology improvements … over the labor day weekend (yaya … boring for many, but fun for me) I recorded three videos that are our most common requests or confusion.

This will not be the last for sure, as they were fun to do, helpful, and useful to show future technology improvements.

Click Here for the New Pro Video Page

New Mug Shot in the Making

Mid week marks the first official new mug shot in over four years …. Wow, where did that grey come from … Oh well, after much prodding by Cathy (office manager) the coming D Magazine “Best Financial Planner” award will have an updated (or old dated ?? haha) new mug shot !

Have a Great Friday and a Super Weekend!

John A. Kvale CFA, CFP

http://www.jkfinancialinc.com
http://www.street-cents.com
8222 Douglas Ave # 590
Dallas, TX 75225

5 Positives This Week, With A Personal Lead Off!

As we posted last week’s positives we felt the crowd beginning to take up residence on our Zig side, while the Zaggers were losing their footing. In the time it takes to snap your fingers, crowds once again left our side and took residence on the dark side, giving us a clear runway for this week’s positives:

So Here We Go:

Congratulations to Randi, Our Newest Full Fledged Attorney: Most of you know Donald’s wife has been completing law school for the last several years. This week brings official notice of what Randi and Donald had known for some time. It is now official, Randi is an attorney, and on her way to becoming one of the top public attorneys in the country. Well done Randi, and thanks for the lead in this week’s positives!

90 Day Treadmillers Continue to Impress: While is seems just like yesterday that earnings season began, it now is coming to an end. Lost in the shuffle of “To Greek or Not To Greek”, was an oustanding performance by publicly traded executives. This positive has gone somewhat unnoticed at this time, but continues to bring value to capital markets at the P, in the P/E multiple. As the P (Price) stays flat and the E continues to grow, values become less expensive. Well Done Fellas!

FOMC, Economy Doing Better: This point is a perfect example of why we Zig while others Zag, click here for the FOMC statement in it’s entirety,  this is the first sentence from the Feds press release:

Information received since the Federal Open Market Committee met in September indicates that economic growth strengthened somewhat in the third quarter, reflecting in part a reversal of the temporary factors that had weighed on growth earlier in the year.

Here are a few dark side headlines from the next day, again showing why we Zig while others Zag:

Fed Lowers Job Forecast” Wall Street Journal
Fed Lowers US GDP forecast, Mulls More Actions” Economic Times

Here is a fellow Zigger, showing how the exact same item can be viewed in a totally different way:

Upbeat Federal Reserve, Doesn’t Hamper Gold”  The Street

This is just another reminder why we keep on Zigging!

Economic Data Continues to be Positive: Name your economic report this week as Jobless Claims, Retail Sales, Productivity, and of course our prior mentioned Fed Policy meeting was positive.  While none of the economic data is roaring, the data continues to “keep it’s feet moving” as our old football coaches used to bark, making for another positive this week in our book!

ECB Cuts Rates: A major positive splash that went unknown and unnoticed. Mario Draghi the newly minted ECB chief made his presence known with a rate cut. Recall, rate cuts are meant to spur growth and are a definite tailwind to economic prosperity. Draghi appears ready to take decisive action over the various big sister and little brother situation, which makes for our final positive of the week!

Stay tuned, and thanks for Zigging with us again this week.

Have a Great Day and a Super Weekend!

JK

214-706-4300