Intergenerational Transfer Of Wealth -- May 1, 2024

Locator: 47028INV.

I have just started a new series on the blog, the process of transferring our assets to our children and grandchildren. We're in our mid-70s; our two adult children are in their early 40's.

From my "personal investing" tab at the top of the blog:

Purpose of the "personal investing" series:

• start the conversation
• work out the process of intergenerational wealth transfer
• set up investment, retirement, educational accounts for two children and five grandchildren
  
• begin transfer of funds to these accounts
• review the history of / the evolution of investments that occurred over the past 30 years
• "to know where you are going, one needs to know what you've been"

Starting early could give heirs several years of financial education before they have to handle their inheritance on their own.

This series only has to do with the intergenerational transfer of wealth. This has nothing to do with how the two adult children are managing their own financial affairs, if that makes sense. The transfer of wealth begins this year in earnest; we've been transferring smaller amounts for the past ten years, but this year we will transfer the entirety of our RMDs, and go from there.

My goal is to have the process complete within five years and pretty much everything on auto-pilot. The transfer of assets will come with no strings attached. Advice will be provided, but at the end of the day, the heirs can use the money any way they wish.

I started this series on the blog just a few days ago; I'm not sure it's even been a full month.

So it was quite coincidental that the following popped up on my twitter feed today:

I believe he has only two children, becoming a father for the first time when he was 63 years old or thereabouts. The boys' mother is his third wife.

Does This Sound Like An Impending Recession? Impending Stagflation? -- May 1, 2024

Locator: 47027ECONOMY.

A huge project, high-paying jobs -- and not enough workers.

We heard the same when TSM had to delay projects in Arizona simply because there were not enough workers -- TSM had all the money it needed, but not enough workers and the project was delayed.

Doesn't sound like an impending recession or impending stagflation to me. 

JPow had absolutely nothing to worry about, nor do the rest of us.

Link here.

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Golden Pass LNG Export Terminal

Home page. 

From 2022, on the blog.

Timeline pushed back.

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The US Energy Picture Is Simply Amazing

From July 11, 2023.

Some examples:

• LNG: at the link, simply scroll through quickly.
  
• Eagle Ford: Crescent Energy closes on $600 million deal; add 75,000 net acres.
• Cove Point:
• link here.
• BRK now owns 75%.

LNG-powered, link here:

Asia's appetite for US LNG, link here: 

From August 22, 2022 with "Sabine Pass stage 5" noted:

Most Important Legal Opinion Reported Today -- May 1, 2024

Locator: 47026LAW.

Most important legal opinion reported today?

Link here. 

The lede (and all I need to know):

A U.S. appeals court on Wednesday said a lawsuit filed by 21 young people claiming the U.S. government's energy policies violate their rights to be protected from climate change must be dismissed, this time for good.

A three-judge panel of the San Francisco-based 9th U.S. Circuit Court of Appeals said in a five-page order that the case should have been dismissed after the court first weighed in on the matter in 2020, when it said courts could not mandate broad policy changes that are better left to Congress and the executive branch.

There are at least eight reasons why this legal opinion is the most important legal opinion reported today. See if you can spot more than three reasons. I may or my not come back to this any time soon, but don't want to lose it, so it's being posted before it's ready for prime time.

Musk Changes Course -- May 1, 2024

Locator: 47025TSLA.

Tag: "Musk changes course"

Timeline: 

• Tesla chugging along
• Musk goes to China
• Musk changes everything
• begs the question: what did Musk see when he went to China?

Updates

May 2, 2024: Tesla is pulling back from EV charging, and people are freaking out. Link to WSJ.

May 2, 2024: crossing the chasm -- five thoughts on Tesla's confusing metamorphosis. Link here.

May 2, 2024: Tesla retreats from next-generation "gigacasting" manufacturing process. Link here.

May 2, 2024: Tesla's supercharging network was critical for US EV success. Link here. This move by Elon Musk is 1000% inexplicable. Looking for more funding from US before expanding network?

Original Post 

Pick your date, somewhere between April 1, 2024, and May 31, 2024. I choose May 1, 2024, mostly because it's easy to remember. 

This is the date Elon Musk took the fork in the road. This is the date Elon Musk changed course. His strategic plan has changed. But no one can possibly know at this point what his new strategic plan might be. Time will tell. What does he see for EVs ten years out? And where does he see Tesla in that future?

Elon Musk's actions this past month have been very, very confusing, interesting, perplexing, strange. Some of his recent actions seem to make sense, but in toto, as a whole, his actions do not add up to an easy explainable strategy.  

A number of Tesla / Musk headlines caught my attention so far during this two-month period (I'm writing this before the second month is completed; indeed it is only one day old so far, but I expect a lot of interesting Tesla / Musk headlines this month of May).

The most interesting headlines:

Number 1: The most interesting headline: in a surprise move, Musk axes the team building the supercharging network. Link here.

Number 2: Tesla rescinded interns' offers just weeks before they were supposed to start. Link here.

Number 3: Musk's surprise visit to China seemed to have prevented TSLA's free-fall. Link here.

Number 4: Musk’s overhauls resulted in changes to his executive bench that he previously touted. Link here. Again, key executives resign, citing chaos in the company.

Before the month is out, I assume we can find ten most interesting headlines between April 1, 2024, and May 31, 2024.

The 30-Second Elevator Speech -- The FOMC -- May 1, 2024

Locator: 47024FOMC.

Updates

Mary 2, 2024: amazing. "Everybody" on CNBC is now saying JPow was a lot more dovish than expected. See my original post below.

Original Post

On the day JPow made his May, 2024, FOMC, remarks:

30-second elevator speech with regard to JPow's remarks today:

• JPow may be the most honest person in DC right now
• JPow comes across as very, very conflicted
• deep in his heart, he knows a 25-bp cut was the right thing to do today but the committee was unable to support him unanimously and he ended up "wavering"; but he's conflicted; he will have a sleepless night tonight
• having said that, JPow's comments in response to questions after his prepared remarks were as dovish as he could be under the circumstances
• I believe him when he says the FOMC does not consider the calendar when making decisions (don't take that out of context)
• cynics will argue that the FOMC does indeed consider the calendar when making decisions

Carl Q, Fed #2:

Carl Q, Fed #1:

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The Fed -- May 1, 2024

Previously posted:

Locator: 47020ECON.

I go back and forth on Steve Liesman, over at CNBC. 

Generally, over the years I have had my disagreements with Steve Liesman but for the past year or so, Steve (Liesman) and I have been on the same page. 

And for the past two days, Liesman has been awesome.

He became really, really agitated late this afternoon.

He's had it with talking heads who continue to mention the risk of "stagflation." Finally, someone on "Fast Money" reminded us the definition of "stagflation." The "original" definition was British and was composed of three components: unemployment, inflation, and lack of growth. But, here, the American definition seems to focus on only two components: inflation and lack of growth. 

And inflation, Steve Liesman put it in perspective. He has to see inflation at least 10% before it meets the "inflation" part of "stagflation." And with US unemployment well below 4% and the economy still adding more jobs than workers available (a ratio of 1.32 as of today) certainly doesn't suggest anything near "stagflation.

Back to inflation. The retailers this week across the board have said they need to bring prices down. Certainly not an omen for inflation.

Great question by a talking head on "Fast Money": after today's Starbucks report and the CEO's comments, does anyone really think Starbucks is going to raise prices? LOL.