How you could earn a second income…in minutes per day
Tuesday, 2 October 2018
By Bernd Struben
- Is a China deal next?
- ‘Morrison to ABC: “Get Back to Work”’
The minimum wage is a contentious issue.
On one hand, it guarantees fulltime workers should be able to afford the basic comforts of life you would expect as an Australian.
On the other hand, higher mandated wages put pressure on businesses to reduce costs in other ways…sometimes by cutting staff.
Today the national minimum wage is $18.93 per hour. That works out to be $719.20 for a 38 hour work week, before the government takes its slice.
If you don’t get paid holidays and take four weeks off, that’s $34,521 per year.
Now you’ll likely agree that’s a lot of time and effort to earn a bit over $34,000.
But what if I told you there’s a way you could potentially earn half that amount…in just a tiny fraction of the time? Literally in just minutes a week?
That’s precisely what stock market veteran Matt Hibbard aims to teach you in his new three day training briefings, ‘Overnight Dividends’.
This isn’t a get rich quick scheme.
Instead it’s a way that you could potentially earn a second income of up to $17,160 per year. And unlike normal stock dividends, which usually pay off only twice per year, the money arrives in your bank account within 24 hours.
Matt explains all in his three part online series, starting this Friday, 5 October. And it’s absolutely free to all paying subscribers to one of Port Phillip Publishing’s advisory services.
So, if you want to know how you can potentially draw 20–40 extra income payments from some of the biggest stocks on the ASX every year, you won’t want to miss what he has to say.
Starting Friday, Matt will walk you through everything you need to know. And once you know it, you could start generating extra income within days.
Though your virtual attendance is free, you do need to register your interest to take part in ‘Overnight Dividends’.
Now to the markets…
Overnight the Dow Jones Industrial Average closed up 192.90 points, or 0.73%.
The S&P 500 gained 10.61 points, or 0.36%.
In Europe the Euro Stoxx 50 index finished up 14.96 points, or 0.44%. Meanwhile, the FTSE 100 lost 0.19%, and Germany’s DAX closed up 92.30 points, or 0.75%.
In Asian markets, Japan’s Nikkei 225 is up 89.10 points, or 0.37%. China’s CSI 300 is up 1.04%.
In Australia, the S&P/ASX 200 is down 43.96 points, or 0.71%.
On the commodities markets, West Texas Intermediate crude oil is US$75.52 per barrel. Brent crude is US$84.99 per barrel.
If you’ve invested in an inverse oil ETF — one which gains when oil falls — as I suggested you may wish to consider last week, you’ll be nursing some losses today.
If you’ve been doing any driving, you’ll also have noticed an unwelcome sting. Petrol is closing in on a record setting AU$1.70 a litre. That’s partly due to the currently weak Aussie dollar and partly due to the artificially elevated oil price.
You can see the continuing rally in crude futures (WTI is the white line and Brent is the blue line) below:
Click to enlarge
As Bloomberg notes, WTI futures are now close to a four year high:
‘West Texas Intermediate for November delivery rose $2.05 to $75.30 a barrel on the New York Mercantile Exchange, the highest settlement since Nov. 24, 2014.’
So far the oil bulls have been on the right side of this trade. Pointing to the supply losses from Iran and Venezuela and a reduced US rig count, some traders are again predicting US$100 per barrel crude.
But I think that’s too bullish by far. In fact, I still believe oil will take a big tumble in October.
Yes, the latest Baker Hughes rig count shows the number of US onshore rigs targeting oil fell last week. But the number is rather insignificant, down from 866 to 863. Similarly, the rig count in the Permian Basin fell from 488 to 486.
Hardly market moving figures.
Of far more significance is the following, also from Bloomberg:
‘Following Trump’s most-recent criticism of the Organization of Petroleum Exporting Countries over high prices, the president and the Saudi king talked on the phone Saturday about a strategic partnership and global economic growth, Al Arabiya TV reported, without providing more details. The White House said “issues of regional concern” were discussed.’
The picture here isn’t complicated.
Trump wants lower oil prices before the 6 November US midterm elections. The Saudis (and Russians) have the capacity to deliver that by ramping up production. The Saudi ruling class is highly dependent on the US to provide the regional stability that helps keep them in power.
We don’t know what ‘issues of regional concern’ Trump discussed with the Saudi king in their phone call. But you can bet he’s piling on the pressure. And world leaders have learned the hard way that Trump is far from all bluff.
When Saudi Arabia opens the crude taps to placate the Donald, as I expect, the oil bulls will be rushing for the exits.
Turning to gold, the yellow metal is trading for US$1,190.81 (AU$1,646.13) per troy ounce. Silver is US$14.53 (AU$20.09) per troy ounce.
One bitcoin is worth US$6,568.25.
The Aussie dollar is worth 72.34 US cents.
NAFTA, as you may have heard, is back on. Although Trump is likely to rebrand it the USMCA, the US-Mexico-Canada Agreement. And it still needs to be approved by Congress.
As The Australian Financial Review notes, the deal surprised many of the so-called political experts:
‘The speed by which the deal fell into place surprised many analysts and investors, after hopes of a breakthrough faded last week after Mr Trump unleashed a fresh salvo of criticism and threats against Canadian Prime Minister Justin Trudeau and his trade negotiator Chrystia Freeland.’
The problem with these analysts is that they’ve built their careers trying to second guess the likes of Barack Obama or Angela Merkel. They haven’t been able to wrap their conventional minds around the convoluted thinking of Donald Trump.
Stoking hopes one day only to throw cold water on them the next is all part of Trump’s anarchic negotiating strategies.
In fact, here’s what I wrote to you in Port Phillip Insider (and in The Australian Tribune) on 30 April:
‘O Canada! What have you done?
‘Poor border enforcement. Counterfeit goods. Shoddy intellectual property protection for US pharmaceuticals…
‘The laundry list of accusations from the Trump administration is unlikely to smooth the renegotiations of NAFTA currently underway. But, perhaps, that is precisely Trump’s intention. Rattle your opponent, push hard, then reach a new agreement more suited to US interests.’
While Trump didn’t get everything he wanted from the new agreement, it’s a clear victory for the Donald and a vindication of his unorthodox negotiating style.
The Canadian and Mexican leaders were also quick to point out that the new trade deal benefits all three nations.
As the AP reported:
‘“We got the right deal. We got a win-win-win for all three countries,” Trudeau said.
‘Likewise, outgoing Mexican President Enrique Pena Nieto said via Twitter that the deal negotiated over the past 13 months “achieves what we proposed at the beginning: a win-win-win agreement.”’
Not surprisingly, the reaction from the mainstream media has been muted. Even Trump’s opponents have had little to say against the renegotiated trade pact, offering the mainstream sparse ammunition to attack their favourite political foe.
Senate Democratic leader Chuck Schumer went so far as to say, ‘I knew it [NAFTA] needed fixing. The president deserves praise for taking large steps to improve it.’
Now that’s not something you’ll hear every day.
While stock markets didn’t rocket on the news, the Canadian S&P TSX closed up 0.19% overnight. Mexico’s Mex IPC gained 0.68%.
Incidentally, the iShares MSCI Mexico ETF [NYSEARCA:EWW] is up 5.26% over the past month. The ETF is intended to track the investment results of a broad-based index composed of Mexican equities, though admittedly it’s only up 1.30% since I suggested you may want to look into this further back on 28 August.
Is a China deal next?
With NAFTA, or USMCA, looking to be settled, alongside a new deal with South Korea and promising signs with Japanese trade negotiators, the big question is what will happen with US-Chinese trade?
That’s a tough one.
Most analysts are suggesting you prepare yourself for a protracted trade war between the world’s two largest economies.
I’m going to disagree. And not just because I tend to swim against the stream.
But the ball here is in China’s court. They’re going to have to make some significant concessions for Trump to, well, trumpet to his base before he’ll ease off the pressure. And President Xi Jinping will need some prodding from back home to make those concessions.
That prodding is likely to come from the nation’s powerful business leaders. China’s stock market has been amongst the world’s worst performing this year. And now the trade war is beginning to impact Chinese factories.
‘China’s official manufacturing purchasing managers index stood at 50.8 in September versus 51.3 in August, lower than the median estimate of 51.2 in a Bloomberg survey of economists.’
Now that’s only a small slip so far. But as the US continues to normalise trade with its traditional allies, the heat will be on China to make concessions.
In the meantime, Aussie investors would do well to focus on the coming effects of the next stage of the China Australia Free Trade Agreement, ChAFTA.
ChAFTA came into effect in January 2016. But tariffs are being removed in a staged process. On 1 January 2019, tariffs on wine and seafood will be cut entirely.
That should prove a boon to the best Aussie companies involved in these industries.
In his investment whitepaper, ‘Australia Pink Gold’ small-cap investing guru, Ryan Dinse, identifies three Aussie companies that he puts at the top of the list for potentially explosive price growth when the tariffs are eliminated.
Finally, here’s the latest in the ongoing ABC fiasco from The Australian Tribune:
‘Morrison to ABC: “Get Back to Work”’
‘The amount of ink spilled on the ABC saga over the past week boggles the mind. Admittedly, The Australian Tribune has touched on the subject as well. But as Prime Minister Scott Morrison points out, it’s time for the taxpayer funded network to “stop talking about themselves”.
‘And the Aussie media would do well to follow suit.
‘Morrison has also said that the way the ABC board…’
If you’re fed up with sanitised, politically correct dogma cut and pasted from one mainstream source to another then The Australian Tribune is for you.
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