PJ Media: How Income Taxes Increase Economic Inequality

By SIMON CONSTABLE

New research suggests that some politicians may have been barking up the wrong tree when it comes to battling income inequality.

Take for instance, Bernie Sanders, the former left-wing candidate for U.S. president who in 2015 said that a 90 percent top income tax rate on the wealthy would not be too high. His idea was to reduce income inequality and he cited the eye-watering tax rates as the right way to do it. Plenty in the media rushed to his defense.

The problem is that the evidence from the real world doesn’t support such assertions. Read more here.

U.S. News: Why an Inverted Yield Curve Signals Financial Disaster

By SIMON CONSTABLE

If the bond market inverts, will your portfolio get upended?

Increasingly market pros today are talking about a flatter yield curve in the bond market. And as the curve flattens we come closer to a dreaded inverted yield curve and a likely recession, which would not be good for stocks or riskier bonds. Read more here.

John Batchelor Show: Copper bullishness 2018 & What is to be done?

By SIMON CONSTABLE

Forbes: Why Prince Harry Should Nix Obama Royal Wedding Invite

By SIMON CONSTABLE

There's a diplomatic spat waiting to happen between the U.S. and U.K., and it involves none other than former president Barrack Obama.

The out-of-office politician is known to be good friends with Prince Harry, and there is now talk of the former getting an invite to the forthcoming royal wedding, according to a report in Metro.

That invite shouldn't happen, and the matter comes down to economics. Read more here.

Barron's: Lead Looks Dead

By SIMON CONSTABLE

The market for lead is about to get an electric shock. And It’s unlikely to recover. It won’t be just falling prices; futures markets trading volumes will probably drop to levels that make transactions very tough to complete. Read more here.

Barron's: How Investors Can Ride a Rally in Commodities

By SIMON CONSTABLE

If inflation looks set for a comeback, a larger-than-average helping of materials, energy, and foodstuffs could help investment returns. 

“Energy, food, and materials are all key inputs into the inflation numbers,” says Will Rhind, CEO of exchange-traded fund firm GraniteShares in New York.

When inflation quickens, prices for those items will rally. But there are nuances that investors need to understand. Read more here.

Barron's: Lumber Rally Will Be Felled

By SIMON CONSTABLE

It’s time to flee the trees. Lumber prices have rallied mainly for reasons that don’t seem sustainable for much longer. 

Active-month futures contracts for random-length lumber were recently trading at $435 per 1,000 board feet, up nearly 30% from $337 early last spring. Investors holding lumber-related futures should take profits. Those wanting to profit from a likely retreat in prices should sell May-dated contracts. Alternatively, they could write out-of-the-money call options with the hope that they expire worthless. Read more here.

Photo by Óscar Salgado on Unsplash