Welcome back.
In this week’s issue of MoneyWeek, Jonathan Compton looks at how farming currently works (hint: its business model is unsustainable) and how it might look in the future as the global population gets richer and diets change; farmers respond to an increasing number of environmental challenges; and the “eye-watering” level of subsidies inevitably fall. He picks the best ways to invest in the farms of the future. It’s well worth a read – so if you’re not already a subscriber, get your first six issues free here now.
In the latest podcast, John talks to Helen Thomas of BlondeMoney, one of the most astute political analysts I know, about V-shaped disappointments and the “velocity of people”, and why Donald Trump could spring a surprise come November’s presidential elections. Don’t miss this one – you can listen here (or wherever you get your podcasts).
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We also have a new “Too Embarrassed To Ask” video. This week, we discuss what “liquidity” is, and why it matters. Check it out here.
Here are the links for this week’s editions of Money Morning and other web stories you may have missed.
- Monday: Two “crosses” to help you decide when to buy and sell the markets
- Tuesday: Warren Buffett, hater of pet rocks, buys his first gold mine
- Wednesday: Why Warren Buffett’s purchase of Barrick shares is such a big deal for gold-mining stocks
- Thursday: Investors are assuming a near-perfect future – that seems unwise
- Friday: Career risk – the private investor’s secret weapon
Now a swift rundown of this week’s main charts.
The charts that matter
Gold slipped back after Warren Buffett’s purchase of half a billion dollars’ worth of shares in mining giant Barrick. It’s now over $100 below the fresh peak it hit at the start of the month – but the show’s by no means over yet.
(Gold: three months)
US dollar index (DXY – a measure of the strength of the dollar against a basket of the currencies of its major trading partners):
(DXY: three months)
Ten-year US government bond yield:
(Ten-year US Treasury yield: three months)
Ten-year Japanese government bond yield:
(Ten-year Japanese government bond yield: three months)
Ten-year German bund yield:
(Ten-year Bund yield: three months)
Copper:
(Copper: nine months)
Aussie dollar:
(Aussie dollar vs US dollar exchange rate: three months)
Bitcoin:
(Bitcoin: three months)
Oil price (Brent crude):
(Brent crude oil: three months)
Amazon:
(Amazon: three months)
Tesla:
(Tesla: three months)
Have a great weekend.
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IMF suggests “refinements” to Rachel Reeves’s fiscal rulesThe IMF has upgraded the UK’s growth forecast but wants Reeves to refine her fiscal rules to avoid unnecessary spending cuts or tax rises
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Invest like a tortoise, not a hare to avoid market volatilityOpinion Hassan Raza, Portfolio Manager at CG Asset Management, highlights three favourite investment companies
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Investors are still in denial about inflation and interest ratesNews There are worrying signs that inflation is becoming embedded in the economy, but many investors are struggling to adjust to the new reality.
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One year later: how is Afghanistan faring under Taliban rule?Briefings It’s been a year since the Taliban took back control in the country following the withdrawal of US troops. The outlook remains grim. Simon Wilson reports
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How millennial entrepreneurs are ruining the work ethicAnalysis Millennial entrepreneurs flush with cash are undermining the work ethic. That is a dangerous trend, says Matthew Lynn.
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Neom megacity: Saudi Arabia’s vision of the futureBriefings The kingdom is building a futuristic city in the desert, a key component of its plan to wean the economy off oil and woo tourists and global businesses. Could it work?
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How capitalism has been undermined by poor governanceEditor's letter Capitalism’s “ruthless efficiency” has been undermined by poor governance, a lack of competition and central banks’ over-enthusiastic money printing, says Andrew Van Sickle.
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A turning point in economic history as globalisation comes to an endNews Nancy Pelosi’s visit to Taiwan could mark a turning point as Western firms swap low costs for resilience, moving away from China to more “friendly” countries.
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Semiconductor shortage: industry heads for “supersize bust”News The semiconductor shortage could soon become a semiconductor glut as demand for electronic gadgets falls while state subsidies could mean a surplus of supply.
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Why China will remain an economic powerhouseAnalysis Some analysts think China is on a path to economic disaster. They are kidding themselves, says Matthew Lynn. He explains why China is not in any type of serious economic trouble.
