Category Archives

Unemployment is low… so low that it is at its lowest level in close to 50 years! And now, finally, American workers are seeing a pay increase (not me, of course, but hopefully some of you are benefitting). Weekly wages are up 3.3% in the third quarter which actually beats the 2.6% inflation increase over the same period.

The Labor Department… decides this figure (3.3%) by surveying people based on full-time wage and salary workers weekly earnings. This is good news because we have seen the job market improve, but not the wages people are making at those jobs. However, rather than pay raises, we have seen companies offer other benefits (that are easier to take away when things go south) like paid sick leave and improved healthcare.

Wages are up, and unemployment is down… so who do we credit for this fantastic turnaround? Actually, no need to ask, because Donald Trump was quick to point the finger at his favorite person – Donald Trump. And shortly after these results were released the president tweeted, “Incredible number just out, 7,036,000 job openings. Astonishing – it’s all working!”

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As you know… Toys ‘R’ Us closed all United States locations in June as part of a bankruptcy liquidation. However, the owners of the company’s remaining assets are looking to re-start the once-thriving toy retailer along with the Babies ‘R’ Us brand. Up to this point, the names were on the chopping block to be auctioned off to someone else.

There was plenty of interest… in the auction, but that doesn’t mean the store would be restored to its old glory. Instead, some evil company looking to destroy the remnants of your childhood would buy the name to ensure it would never be used by a competitor ever again. However, today marks encouraging news for the brand to come back.

They filed for bankruptcy… just a year ago and had plans to reorganize the business and pay off debt. However, a less-than-merry holiday season forced the company to close its remaining 800 US stores and go out of business. But now there are plans to create “a new, operating Toys ‘R’ Us and Babies ‘R’ Us branding company.” And if this doesn’t brighten your day, then there is something wrong with you.

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Sears is goin’ broke… however, put in technical terms, the company faces “significant near-term constraints” in its cash position. The company owes $134 million in debt, and those payments all come due in October. CEO Eddie Lampert has proposed that Sears sell the Kenmore appliance brand (to him), along with most everything else.

Don’t say bankruptcy… because Lampert was undoubtedly careful not to. However, if you know what bankruptcy entails – Sears is about to file for bankruptcy. Interestingly enough, Lampert’s hedge fund holds much of Sears debt, which is why the CEO is open to buying Kenmore and the company’s home improvement business.

Lampert has a conflict of interest… that is pretty apparent. However, decisions to buy and sell aren’t really up to him – they are up to the independent board members of the company. However, Sears issued a statement saying they are “pursuing” the plan but makes no guarantees – so slow your roll there, Lampert.

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This guy isn’t just some pothead… he’s the head of a publicly traded cannabis company, as well as a pothead. The CEO of Canopy Growth, Bruce Linton, thinks laws prohibiting marijuana could loosen up soon (for the record, we don’t know if he smokes weed, but hopefully he does). Linton cited the fact that Republicans have had a history of supporting state rights. And what do ya know? Several states have legalized marijuana.

California and Massachusetts… could be given the “green” light by federal regulators to sell and possess marijuana in small amounts. However, pot being illegal hasn’t stopped American companies from joining the fun. Constellation Brands, the owner of Corona, recently spent $4 billion to own part of Canopy Growth.

Canopy has been killing it… but they aren’t the only ones. Cannabis companies Tilray and Cronos are both up this year as investors anticipate significant sales as the marijuana legalization in Canada comes closer. And it’s not just cannabis companies – beverage makers and pharmaceutical companies are looking to get in, too. But for now, the United States largely remains grounded from what otherwise could be spectacular highs.

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