Juggling Dynamite

On line retailers are upending bricks and mortar stores and commercial realty markets…on site printing will upend pretty much everything.  From retailers to wholesalers, warehousing, packaging, transport, labor, capital flows and international trade, all while bringing massive savings to consumers and the environment.  The future will be different than anything most can imagine.  This is happening.

Watch: Forget shopping. Now you will download your new clothes.

We can also make all sorts of useful products from recaptured carbon from our atmosphere. From food to fertilizers, fuel, and construction materials like cement, graphene, nanotubes, and carbon fiber. Luckily while naysayers waste time and energy, smart minds are focused on solutions every day.  See Carbon to cupcakes: 6 amazing things we can create from carbon dioxide:

Dr. Marcius Extavour is the Director of Technical Operations of the $20 Million NRG COSIA Carbon XPRIZE, a competition designed to showcase new ways to transform carbon dioxide into materials we can use, instead of allowing it to escape into the atmosphere. Registration deadline is July 15th, 2016. Form or join a team today!

Also see: Super-materials: The foundation of the future.

Today the Wall Street Journal runs with 5 things you should know about IEX:

IEX Group Inc. is likely to win approval to launch a new stock exchange when the Securities and Exchange Commission’s three members vote Friday on its controversial application. IEX’s unique design, which it says favors the needs of long-term investors, has divided Wall Street and antagonized competitors such as the New York Stock Exchange, which lobbied against IEX and pressured the SEC to deny full approval to IEX. Here are five things you should know about IEX.

In point 5, the article offers a list of early investors and advocates who it says will be “big winners” if the IEX wins SEC approval tomorrow. But the article fails to make mention of the biggest winners of all: legitimate investors trying to ‘invest’ rather than cheaters gaming and skimming legitimate investor flows. This comparative list remedies that oversight.

18 things you should know about IEX pic.twitter.com/cHqNxjZ2I1

— Eric Scott Hunsader (@nanexllc) June 16, 2016

Today capital flows are continuing to dump risk and pool in the usual ‘safe haven’ suspects.  Gold bullion is through $1300.  The US dollar, Yen and Swiss Franc are all strongly bid, with the Yen funded carry trade in swift reversal.  The Yen has strengthened to $104.20/USD today, far stronger than the $110.98 area it peaked at in the global market sell-off into February of this year.  Oil, copper and commodity-currencies are tanking.  Other than cash safe-haven currencies, treasuries are in high demand once more.

This chart of the US 10-year Treasury yield tells the tale of central bankers who are running on empty and losing the confidence battle amid political upheaval far and wide.  Today breaking below 1.56%, the 10-year yield has now broke below the prior lows of February 2016, 2015 and 2013.  But with German, Swiss and Japanese 10-year treasuries now all with negative yields, a global flood of yield-starved cash may well push North American yields lower still.  The next test, as circled in the far left yellow oval below, is the 1.39 all time low reached in 2012.

As the long always, sell side, perpetually insists that the economy is ‘getting better’, ‘job growth is good’, ‘profits should improve’ and ‘central banks still have options’, capital is stampeding out of risk markets all around them.

The catalyst is not ‘Brexit’ or Trump, irrational fears, or any one of the dozens of recessionary looking economic indicators worldwide.  The catalyst is the growing awareness that central banks have not only failed to steward global inflation and job growth–but their relentless credit ‘stimulants’ have been instrumental in decimating them.

Economic contraction and the coming bear market have been well and surely earned.  Rather than deny the power of market cycles, it is wise to take cover and allow mean reversion to run its value-restoring course, however long it takes.  The upside for those with discipline and foresight, promises to be well worth the wait.