08/23 Update – Perils of penny stocks, Liberals view Chicomm as existential threat, Housing on fire, FOMC minutes, Eschatologists getting it wrong

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Penny stock case study 

-The perils of trading penny stocks; EMAN in focus. Though the Robinhood traders love the stock and the Feds have recently promised $40 million in award money (not purchases) to upgrade its manufacturing capabilities, a further study of the proxy statement revealed some longer-term balance sheet issues that I previously overlooked, which are now handicapping its price potential.
-Offshore entities and their affiliates, hidden via LLC shells, control over 50% of the shares outstanding, and have been accumulating common stock via conversion of convertible preferred holdings. These entities lend out at onerous terms and are equivalent to pay-day lenders for micro-caps. These lenders effectively gain control of the shares by shorting the stock to lock in profit for conversion in the future at suppressed prices. These convertibles are referred to as “death spirals” as the firm negotiated this borrowing several years ago, when the firm’s prospects were less promising.
-Now that many of these preferred shares have been converted, it would make sense for these LLCs to sell on every auspicious opportunity to lock in profit; hence EMAN’s recent price performance immediately after price spikes.

Growing bipartisan consensus that views the CCP as an existential threat

-I have been coming across more articles on the “liberal” outlets that have been warning that ChiComm China is an existential threat;
CNN: China’s Communist Party is a threat to the world, says former elite insider
Business Insider: Hundreds of Chinese fishing boats lurking off South America add to fears about a future war for fish
-This view is no longer exclusively a pro-Trump view. I suspect that regardless of who gains the presidency, this issue will grow and persist over time.
-Since there is absolutely no alternative to the USD at the present time, I have to suspect that a future conflict will lead to a change. We are being conditioned into the “inevitable.” The global supply chain will be redirected from China over time, which will infuriate ChiComm leadership. Here is the bottom line; a growing population refuses to trust ChiComm leadership.

The Fed’s FOMC minutes in review

-Subliminal contradiction; Though the Fed has engineered a collapse of the yield curve in record fashion, it claims that yield curve management is not in the cards. This form of conditioning allows the observer to view two contradictory findings as equally valid.
-The Fed also stated that it doesn’t anticipate any additional asset purchases above the $120 billion/mo already announced. This is easy to assume, since the Federal government has not come to any agreement on stepped up fiscal stimulus. The Fed will monetize any additional fiscal spending however, once the Federal government comes to terms on new programs.
-This ostensibly hawkish tone took gold down as much as $100 from Wednesday AM trading, and helped to relieve the growing pressure in the commodities market. It also helped the short-term support of the dollar, while at the same time, kept UST yields lower.

Housing on fire

-There really isn’t any reason to add to the observations already proffered. The Fed’s ongoing mortgage purchase program has helped to narrow the gap between the 10-year UST and the 30-year conforming mortgage rate. It will continue, which is why we predicted real estate would be on fire over time.

Take a wild guess where you think this yield will move. Affordable housing investors (those who invest in properties below the market median) have been richly rewarded over all other forms of real estate.
Just to narrow the widening gap, the 30-year mortgage yield has to drop to about 2-2.25% from the current 2.9%. The Fed will ensure this and more as it continues their MBS purchases.

-I purchased a condo in late February for all cash, and it’s already up by about 20%.  Although I initially regretted laying out that much cash when I thought it was prudent to be liquid, once the Fed announced their programs in late March, I knew I made the right decision. The cap rate is still about 9%.
-Rochester NY real estate is on fire. Check out these two Realtor articles. Rochester is #3 and #9 in these articles.
Far From the Bright Lights of Big Cities, These Are America’s Hottest ZIP Codes in 2020
Comeback Kids: These Housing Markets Have Recovered the Most Since the Start of the Pandemic

Students of eschatology are still getting it wrong

-If what I think is correct, and the globalist noose is being placed around our necks, we will have onerous restrictions placed on our abilities to engage in commerce or hold down a job unless we get vaccinated.
-Based on the coalescing globalist narrative, futures vaccines will be mandatory and their administering will have to be proven. Thus, I see proven concepts via micro-needles injection with their luciferase biomarkers as the real mark of the beast. We will have to show our near-infrared readable marks to be allowed to do anything. Many globalist think-tank experts are already predicting that any new vaccines will have to alter our DNA sequences to produce the required antibodies. We will no longer be fully human.
-Thus, it is ever more imperative to grow our passive income. This will afford us more time as we adjust to the end times. As a remnant Christian, this is really why I recommend real estate investing over all others. We have more direct control over our decisions.
-Already, I am adjusting to a world in which I won’t be able to do many activities I once took for granted. Since I will never get vaccinated, I won’t eat out and do much shopping anymore. I also don’t rely on the government or employer for money. I receive rent from happy tenants, since I don’t charge full market.
-The globalists have the Bible prophecy students believing that a chip will be the mark. I am beginning to conclude that these vaccines with their bio-luminescent marks will be the real mark.
-When we are not raptured out of here, the demoralized Christians who believed the pre-tribulation pastors will throw in the towel when Jesus doesn’t appear. Recall that Jesus’s apostles were initially demoralized when Jesus died, but he appeared only a few days later. We will have to wait it out at least several years.
Quantum Dots Deliver Vaccines and Invisibly Encode Vaccination History in Skin
-The great leaps in 5G and wireless technologies circumvent the need for a microchip, while being much more effective via alterations to our body chemistry and DNA makeup.