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China’s Coronavirus Stats Can’t Be Trusted

By: Justice Clark Litle

1 hour ago | News

The coronavirus data coming out of China is manipulated, and possibly outright false. We know this, in part, because a Chinese health official has admitted as much. There have also been questions and red flags around China’s data reporting from very early on. This matters because China’s coronavirus statistics — the number of cases, the number of fatalities, and the…

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The Odds of a V-Shaped Recovery are Zero

By: Justice Clark Litle

1 day ago | Educational

There are multiple economic recovery scenarios, and varying expectations for how long each one could take. These scenarios are often described as letters of the alphabet. A “V-shaped” recovery is the best-case scenario. In a V-shaped recovery, the economy bounces back as quickly as it fell. V-shaped recoveries are fast and vigorous. A “U-shaped” recovery is the middle-of-the-road scenario. There…

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Congress Needs Remote Legislating Capabilities As Soon As Possible

By: Justice Clark Litle

5 days ago | News

Without remote legislation capabilities, there are plausible scenarios where Congress loses its ability to legislate, or even to function. Imagine a scenario where the government is frozen in place — and no new emergency bills or measures can be passed. The risk of a non-functioning government, in the midst of the worst global crisis in generations, is now staring us…

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Is $2 Trillion Worth of Stimulus a “Nuclear Bomb” — or a Mattress in a Volcano?

By: Justice Clark Litle

5 days ago | News

A $2 trillion emergency relief bill passed in the U.S. Senate by unanimous vote. The bill is likely to pass in the House, and the president is likely to sign it. The final ink is not dry as of March 26. And yet we can say, with a high degree of confidence, that roughly $2 trillion worth of aid is…

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Self-Delusion is Not a Valid Coping Mechanism

By: Justice Clark Litle

7 days ago | Educational

Self-delusion is not a valid coping mechanism. In order to protect their capital, investors should remember this at all times. In the midst of a national crisis, citizens should remember it, too. Under normal conditions, optimism is a desirable trait. Optimists have a natural ability to enjoy life. Seeing the bright side of things is good for mental health, and…

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The Four Things America Needs to Beat the Pandemic (and Save the Economy, Too)

By: Justice Clark Litle

1 week ago | Educational

The coronavirus pandemic is not just one global crisis. It is actually two distinct crises rolled into one. On the one hand, there is a public health crisis. The speed of contagion combined with the severity of symptoms — for about 20% of those who catch the virus — leads to hospitals becoming overrun. At the same time, there is…

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The Day the Fed Went to Infinity — and Markets Didn’t Care

By: Justice Clark Litle

1 week ago | News

The Federal Reserve went to infinity, and markets didn’t care. It’s hard to say which part of that statement is more remarkable. On the one hand, the Fed has promised to print endless trillions, if need be, to absorb whatever assets it needs to. That is mind-blowing. On the other hand, the market took the Fed’s announcement in stride —…

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Why Mental Capital is Just as Important as Financial Capital

By: Justice Clark Litle

1 week ago | Educational

Investment success depends on two types of capital, financial and mental. We are all familiar with financial capital. This is what goes in the brokerage account. Financial capital is what we use to buy and sell stocks, options, cryptocurrency, or whatever it is. But mental capital, though less well known, is just as important. Without mental capital, financial capital is…

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America and the World Will Never Be the Same

By: Justice Clark Litle

2 weeks ago | News

Vladimir Ilyich Lenin once said: “There are decades where nothing happens; and there are weeks where decades happen.” We are living through one of those weeks. Lenin led the Bolshevik revolution of 1917 and the formation of the USSR (Union of Soviet Socialist Republics) in 1922. When he said “there are weeks where decades happen,” Lenin meant society can exist…

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U.S. Treasury Bonds are the Most Important Market in the World Right Now

By: Justice Clark Litle

2 weeks ago | Educational

The most important market to watch right now might be 30-year U.S. Treasury Bonds, known as “long bonds.” Treasury bonds are supposed to rise in value when the stock market falls sharply. There isn’t a rule that requires this. Instead, it is just the normal way things work: When stocks drop heavily and across the board, capital flows out of…

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