A crash in the dollar is likely and it could fall by as much as 35 percent by the end of 2021.”

So writes Stephen Roach of Yale University and the former Morgan Stanley Asia chair, in the Financial Times. What is going on?

To Mr. Roach, the past is catching up with the United States, the present is observing the potential for a financial collapse, and the future will be left with the job of reconstructing a new world. Where is Mr. Roach coming from?

Where Is The Federal Reserve?

The Federal Reserve seems to have taken itself out of the picture with its new approach to inflation and its interest rate policy.

As Mr. Roach writes,

The Federal Reserve has recently shifted to a strategy that takes into account an average of inflation rather than a specific target, and promised to keep policy rates near zero for several more years. That means the interest rate channel has effectively been closed.”

Furthermore, as I have written many times over the past twelve months or so, the world seems to have lost confidence in the U. S. federal government and this has added to an already substantial movement out of the “risk averse” foreign money that had flocked to the dollar before.

This lost of confidence has been accelerated at the government’s budget seems to be “out-of-control” with no end is sight to the build up

And, as I have recently written

Debt is accelerating everywhere… this is happening both inside and outside the federal government. And, slower (economic) growth makes it harder for the government to reduce the debt burden.

It also makes it harder for corporations and other business enterprises to cover cash outflows, thereby threatening their ability to cover debt payments.”

Furthermore, whoever wins the election on

  • A report by UBS analyzed price growth in 25 major urban housing markets around the world from the second quarter of 2019 through the second quarter of 2020.
  • Of those markets, 7 are in bubble risk territory, meaning at risk of a housing market crash.
  • The top 3 are Munich, Frankfurt, and Toronto.
  • Visit Business Insider’s homepage for more stories.

On a global scale, the housing market has shown strength during the coronavirus pandemic, despite the economic downturn. 

A recent report by UBS identified three factors for its resilience.

First, as home prices are a backward-looking indicator of the economy, UBS said they react with a delay to economic downturns. The number of transactions declined in most cities in the second quarter of 2020 compared with the previous year, “complicating price formation and reducing the validity of observed prices.”

Second, the majority of potential home buyers didn’t suffer direct income losses in the first half of 2020, UBS found. “Credit facilities for companies and short-time work schemes mitigated the fallout from the crisis, supporting employees’ housing affordability.”

And third, governments helped homeowners in many cities during the lockdown periods, with increased housing subsidies, lowered taxes, and suspension of foreclosure procedures.

The report analyzed annual house price growth rates in 25 major cities from 2001 through the second quarter of 2020. The markets in the study were Munich, Hong Kong, Zurich, Paris, Singapore, London, Geneva, Frankfurt, Stockholm, Vancouver, Milan, Toronto, Tel Aviv, Sydney, New York, Moscow, Amsterdam, Madrid, Tokyo, San Francisco, Los Angeles, Boston, Warsaw, Dubai, and Chicago.

In 21 of those cities, price growth accelerated over the past four quarters, a trend that USB called unsustainable. 

In fact, according to the UBS Global Real Estate Bubble Index, seven of the cities in the analysis are in bubble-risk territory, or at

Stocks have rocketed higher recently, erasing most of the massive losses seen during the coronavirus market crash earlier this year. In fact, the S&P 500 is actually up about 5% year to date. While this bull market resurgence has been good for investors’ portfolios, there’s always a possibility of another market crash around the corner.

Indeed, many investors may have some specific concerns on their mind, including uncertainties surrounding the election, the possibility of a bigger wave of COVID-19 cases during the cold and flu season, increasing national debt levels, or simply a stock market correction after a sharp run higher. Any of these factors has the potential to morph into a bearish trigger for the market, potentially leading to a stock market crash.

If you are concerned about a potential market crash and want to invest in companies that can easily endure extended periods of economic weakness, consider investing in these two stocks: Warren Buffett’s Berkshire Hathaway (NYSE: BRK.B) (NYSE: BRK.A) and grocery chain Kroger (NYSE: KO).

A chart showing a stock price falling

Image source: Getty Images.

2 stocks for a market crash

Berkshire Hathaway, helmed by famed investor Warren Buffett, is a financial fortress built to endure just about anything that is thrown its way. Buffett has said Berkshire’s financial affairs will always be managed “in a manner allowing the company to withstand external shocks of an extreme nature.” Perhaps this explains the company’s record $143 billion cash and cash equivalents at the end of its most recent quarter. This war chest is equal to about 28% of Berkshire Hathaway’s $511 billion market cap at the time of this writing.

Even more, many of Berkshire’s assets and stock holdings are defensive companies selling products likely to continue to be purchased during tough times. A significant portion of Berkshire’s operating activities, for instance, are

Is there another market crash ahead? Well, it’s safe to say that September has been rocky, with the S&P 500 dipping 4.3%. As coronavirus outbreaks continue around the globe, businesses are feeling the weight of consumer and investor uncertainty. The Nov. 3 presidential election had added new “what-ifs” to the fall; and we all know that the market doesn’t like uncertainty.

It’s impossible to predict whether the coronavirus crisis will push markets into a true second crash. But investors can still prepare. If you have $10,000 (or even less) to invest, here are three healthcare companies that can protect your portfolio during the worst of times. Why? Each of these giants have product approvals on the horizons and can show evidence of existing revenue growth. They also quickly recovered from the March market crash. Those are good signs for rough times ahead.

Technician wearing a white coat and glove organizes vials of drug components over a machine.

Image source: Getty Images

Abbott Laboratories

Abbott Laboratories (NYSE: ABT) has had two major accomplishments in the past few months: It’s developed six different rapid COVID-19 tests, and it has brought an updated version of its FreeStyle Libre glucose monitoring system to market. Both should offer revenue a lift in the coming months and beyond.

The U.S. Food and Drug Administration (FDA) has granted each of Abbott’s COVID-19 tests an emergency use authorization (EUA). The latest is a portable, low-cost, 15-minute test. Abbott plans on delivering 50 million of the new tests each month as of October. So far, the company has provided more than 27 million COVID-19 tests in the U.S., an effort that is starting to show up in earnings reports. In the second quarter, coronavirus diagnostics brought in $615 million of the company’s $7.3 billion in worldwide revenues.

Turning to Abbott’s diabetes business, the FreeStyle Libre 2 system is big news, in part because the

First responders took personal pictures at the site of a helicopter crash which killed Kobe Bryant. Under a new law signed this week by Gov. Gavin Newsom, such acts are now a crime.

First responders under the new law can be charged with misdemeanor crimes and face penalties of up to $1,000 if convicted of the offense.

Assemblyman Mike Gipson, D-Carson, wrote Assembly Bill 2655 in response to reports that first responders took personal photos of the victims at the scene of the Jan. 26 helicopter crash in Calabasas that killed the former Los Angeles Lakers star and eight others.

“Like many others, I was mortified after I’d heard that first responders captured and shared unauthorized photos from the scene of the helicopter crash that killed Kobe and Gianna Bryant, Payton Chester, Sarah Chester, Alyssa Altobelli, Keri Altobelli, John Altobelli, Christina Mauser, and Ara Zobayan,” Gipson said in a statement after his bill passed on to Newsom’s desk, listing the names of the crash victims. “The actions of the first responders involved were unacceptable, and they highlighted a problem that demands a strong remedy.”


©2020 The Sacramento Bee (Sacramento, Calif.)

Visit The Sacramento Bee (Sacramento, Calif.) at www.sacbee.com

Distributed by Tribune Content Agency, LLC.

Continue Reading

Source Article