• Wendy’s sales have fallen six quarters in a row.
  • Traffic at U.S. stores was down more than 12%.
• The Wendy’s share price revisits 1987.
  • And we take a look back.
• McDonald’s sales growth slows.
  • And traffic at U.S. stores falls.
• The return of the establishment hacks.
  • Burritos set off a firestorm.
• Yes, tariffs hurt Canada, but not nearly as much as our own unforced errors.
• Canadian consumers are finding life increasingly difficult.
  • This is what happens when policymakers encourage a debt-fueled housing bubble with ridiculously low interest rates.
• The U.S. central bank has missed its 2% confiscation inflation target for 65 straight months.
  • And airline fares are through the roof.
• Financial Ructions
  • We revisit the impact that tariffs can have on an economy.
    • And there is debate as to whether Alexander Hamilton was a great Secretary of the Treasury.
• Book Review:
  • We finish our review of Dr. Doug Cardell’s Why Socialism Struggles.
    • Crony (corrupted) capitalism
    • Progressive taxation is not based on morals.
      • But on an ability to pay.
    • Only bubbles blown with the help of governments lead to economic calamities.
    • Socialism is a lie.
      • But is a natural response to corrupted capitalism.

• We look at four different ways of spending money.
  • Government is the worst and continues to grow.
• Uber vs. Lyft update.
  • Lyft still a far better deal.
• A.I. data center, and government infrastructure spending are still booming.
  • And Caterpillar is benefiting from both.
• Conversely, Deere Corporation’s sales growth slows.
  • Farmers are suffering from high input costs and are cutting back on large equipment purchases.
• Financial Ructions:
  • The Fed’s ample reserve system.
    • No, banks do not need ample reserves to grow their loans business.
  • We take another look at imputed rents.
    • And their fictional contribution to Canada’s GDP.
  • The U.S. is increasing its usage of emergency measures to keep bond yields from exploding higher.
    • The pressure will not relent.
• Book Review
  • We cover the next two chapters of Why Socialism Struggles.
    • Money is not evil and a paragraph from my book.
    • A closer look at the difference between Socialism and Capitalism.

• French luxury goods maker LVMH sees its strongest growth in over two years.
  • Watches, jewellery and Japan lead the way.
• Hermes also sees its sales accelerate but its share price tanked on the announcement.
  • And its shares are still very expensive.
• Tesla sales accelerate but profit sank 57%.
  • Shareholders weren’t impressed.
• Nike has now gone eleven straight quarters with no sales growth.
  • Over the last five years its share price is down an astonishing 75%.
• Luxury furniture company RH sales go negative for the first time in two years.
  • And its share prices are challenging Nike for the worst performance over five years.
• Financial Ructions
  • 30-Year US Treasury yields are the highest since 2004.
    • And 1-Year yields are back to where they were in 2007.
      • Along with 30-year fixed rate mortgages.
  • Our favourite mainstream journalist is back and no, a strong economy does not require higher interest rates.
  • I dust off one of my old marketing slides to demonstrate how simply looking at annual rates of return for a mutual fund can be misleading.
• Book Review
  • We’re on Chapter 4 of Why Socialism Struggles.
    • We explore the danger of trying to fix prices in an economy.
      • Prices of goods or labor.
    • And we look at why technology and progress must be embraced.
      • Stopping progress might result in zero unemployment but we’d all be impoverished.

Summary

• A disturbing number of Americans are using Buy Now, Pay Later options for groceries.
• American booze company Constellation Brands has turned things around.
  • But not its share price.
• Brown Forman (Jack Daniels) also sees sales ticking up.
  • And broke off merger talks with French booze company Pernod Ricard.
• In Financial Ructions
  • A look at wage growth in the U.S. vs. Canada.
    • And economic stats can be cherry picked.
  • Corporate bankruptcies in the U.S. are increasing
    • And 2026 could set the highest number since 2010.
  • Signs of financial repression.
    • A look at Japan.
• Book Review: Why Socialism Struggles
  • We look at the concept of value.
    • Why not everyone can be paid a living wage and what, as a society, we do about it.

• A look at pawn shops.
  • And how they may be a good hedge in your stock portfolio.
• Sales of General Mills finally stop falling.
  • But volume continues its downward path.
• A look at the most visited websites in the U.S.
  • Gmail leads the way.
• In Financial Ructions:
  • Chicago’s public pension plans are a disaster.
  • Investment in Canada is falling further and further behind the U.S.
• Book Review
  • We’re on chapter two of Why Socialism Struggles.
    • Economics is about making decisions.
      • And no, not by policymakers but by individuals.
  • However, we are all suffering from the Fatal Conceit of our elected and non-elected officials.

• Dogs in the U.K. go postal.
• A sad tale of beer in the U.K.
• Xbox console sales have been plummeting.
  • And here come the layoffs.
• Demand from Krispy Kreme customers is softer than their donuts.
  • And their share price has tanked over the last five years.
    • And another look back.
• A great campaign slogan.
• Financial Ructions:
  • New Zealand and Singapore top the list of countries in terms of ease of doing business.
    • France, Japan and Italy way down the list.
• Book Review
  • We start a new book review: Why Socialism Struggles by Dr. Doug Cardell.
    • There are a lot of misconceptions about what socialism is and what free market capitalism is.
    • I hope that after reviewing this book you will have a better understanding of how an economy really works.
    • And be able to identify when certain economic doctrine is driven more by ideology than reality.

• The cigarette industry is seeing a slow but steady decline. And employment is falling.
  • Also in the number of employees.
• Check your eggs.
• Nike’s customers are under continued pressure.
  • As is Nike’s share price.
• The wisdom of crowds requires at least one very important condition.
• Financial Ructions:
  • Japan: Too many holes in the dyke?
  • The U.S. vs. the E.U. cage match.
  • The Bank of Canada worries about capital being misallocated.
    • While they and other central bankers have been the main perpetrators of malinvestment for at least twenty-five years.
  • Productivity growth in Canada has tanked.
  • U.S. exceptionalism
    • And no, reckless government spending is not justified by giving hedge funds a place to park their money.
  • U.S. unexceptionalism
    • Insider trading.
  • A look at tariffs.
    • And Brexit.
• Book Review:
  • We finish our review of Howard Schultz’s great book on Starbucks.
  • And I highly recommend it but especially for anyone looking to start their own business.

• More evidence that pizza sales are slowing with Domino’s just barely in positive territory in the U.S.
• Another look at wealth disparity in the U.S. and this time we focus on stocks and mutual funds.
  • As you might expect, the disparity is even worse here.
• A look at toys with two companies going in different directions.
  • As is their share price.
• No more brown M&M’s and a repost on the Mars company.
• Too many people think of housing as an investment.
  • No, a house’s productivity does not rise over time.
    • But it is a good vehicle for forced saving.
• How governments increase house prices from both a demand and supply side of the equation.
  • A quick look at Germany.
• Some in Canada believe it’s ok to first make housing and good jobs inaccessible for young people.
  • And then charge them half a million dollars if they want to move to another country where good jobs and affordable housing are available.
• China’s economy is struggling.
  • One data point: car sales are falling rapidly.
• Financial Ructions:
  • Defunct economists.
  • Alan Greenspan: RIP
• Book Review: Onward by Howard Schultz (Starbucks)
  • Thinking long-term vs. short-term
  • Self reinforcing corporate cultures: Good and bad.
  • Reinvesting in all parts of your business all the time.

• After many quarters of negative U.S. sales growth, Yum! Brands decides to offload its Pizza Hut business.
  • But Taco Bell is still ringing in strong sales growth.
• The Starbucks turnaround plan seems to be working.
• A look at wealth disparity in the U.S.
  • And how the older generation has benefited from central bank policies
    • At the expense of the next generation.
• Lululemon’s North American Sales kick off the year by accelerating downwards.
  • But management thinks they’re off to a good start.
• Apple’s sales soar due to the popularity of its new iPhone 17.
• A quick look at some price increases in America over the last five years.
• Social Security in the U.S. will now be insolvent by 2032.
  • And a look at some solutions.
• Ontario’s housing market is struggling.
  • And could get worse.
• Canada’s government comes to the rescue with a taxpayer-funded baby boomer bailout.
• In Financial Ructions:
  • Technology stocks have now eclipsed their 1999 peak weighting within the S&P500.
    • But their share of earnings has gone up even more.
      • That doesn’t mean that they’re cheap.
  • A look at an op-ed that says Bitcoin is going to zero.
    • But it makes some assumptions I don’t agree with.
• Book Review: Onward by Howard Schultz (Starbucks)
  • We see the importance of empowerment and letting go.
    • A lesson our policymakers have unlearned.
  • A quote from legendary Costco CEO Jim Sinegal.
    • The importance of investing in your customers.
  • And the importance of corporate culture.

• Hybrid car sales are soaring. 
  • And the Japanese dominate the category.
• Macy’s and the K-Shaped economy. 
  • If you can’t beat em, join em.
• Kraft Heinz has had 17 straight quarters of volume decline. 
  • And so decide not to split the company in two.
• Core inflation for May in the U.S. was the highest since last September. 
  • And falling prices that are really rising.
• In Financial Ructions 
  • The U.S. jobs report for May was strong. 
    • But more than 100% of the net jobs created were part-time. 
      • And yet again ye ole birth-death model comes to the rescue.
• Book Review: Onward by Howard Schultz 
  • We cover five more chapters (I don’t cover all chapters in the book). 
    • The importance of the intangibles is stressed. 
      • Putting your ego aside.
      • Having passion for the business and the customer
      • Heritage
    • Two reasons why the vast majority of policymakers are not good leaders. 
      • And the importance of teamwork
    • Far too often the tail of Wall Street wags the dog of corporate America.
    • And the best time to fix your business model is when it's working.