Four Words

The pundits are at it again.

Given the debate results many are describing is a victory for Hillary, certain investments like gold, oil and the like have dropped in price while others like the dollar and the prospect for a rate hike soon from the Fed have rallied. Such a rate hike would be essentially bad for long bonds and gold and good for the dollar and such.

The smell emanating from all this is not that of victory but of opportunity. There is no victory in either of these candidates. It's simply a question of how much more of how much of the same are this nation's subjects willing to put up with. The unexpected is most likely to stick its ever-lurking head up early next year if not sooner once this travesty called an election in a semi-free country hell-bound for becoming less semi-free is over.

Four words should come to mind: You're on your own. And that's where the opportunity is. On any weakness we would be buyers of those things that are noted enemies of the status quo, like gold and energy. They desperately need  you to continue to believe and stake your future, what little choice yo actually have in determining it, in the fiat-based currency world that is now in clear disarray.

Raising interest rates by 25 or 50 basis points is being marketed as necessary to give the gaggle of global incompetent central bankers a margin of safety to lower than again in the name of liquidity should their timing be wrong. And what happens to yo if it is wrong? There is something called a track record otherwise known as a profile. It's still for now permissible to apply to many things, but just don't try to apply it at your local airport, police station or next political election.

 Systemic is a word to keep in your investing lexicon. Just today one European source declared: "European banks are in a “very fragile situation” and are “not really investable as a sector" according to Credit Suisse." A couple of days ago ECB President Mario Draghi, the EU's version of Janet Yellen, urged his buddies in Brussels to take a hard line with those villainous Brexit traitors. Hard line here is code for austerity, a ploy only they get the privilege of deciding its meaning and its use. These people love code language. It's their stock in trade.

In the current U.S. election one billionaire wag offered $10 million for anyone who could produce a copy of Trump's tax forms. Someone should tell this elitist jaw boner the money would be better spend trying to figure out the Bank of Japan or how in the hell Janet Yellen came to head up the Fed.

If you need to be hit over the head here to buy what these pundits are trying to get the world to sell to keep their empires going, that's your problem. Look into NFL helmets.

Most recognize good news. But the trick is to recognize bad news about to change. Rocked by fall in oil-and-gas prices, some energy funds are pleading with their investors for more time and money, WSJ (9-28-16)

Now about those four words.