Toward that end, I'll open with a metaphor -a device I do so enjoy...and it's the same one I offered to my wine owner.
The image I have is a beautiful little desert village with fruit stands in the streets, children running through sun-bathed flower beds, and yuppies driving blissfully about in convertibles listening to Michael Bolton's Greatest Hits.
The sun is shining, not a cloud in the sky. All is well, as far as the eye can see. And up there, on the distant horizon, sits a massive dam, behind which millions upon millions of gallons of deadly river water are pushing.
And somewhere, hidden among the walls of that great dam, is a group of very nervous folks - dangling from repelling ropes, with their stubby little fingers desperately plugging holes which are now appearing with increasing frequency.
The image I like to use includes Ben Bernanke, Alan Greenspan, Mario Draghi, and Janet Yellen scurrying from hole to hole to hole, shouting for more corks, fingers, or even silly putty to keep the great dam from, well, crushing them (and the village below) to death...
Below we look at rising debt levels, the currency risk that follows central bank debt “solutions” and why gold still matters.
As March rolls in, the ever increasing disconnect between Wall Street and Main Street continues, as I touched upon in this recent video from New York.
Market noise, and thus market questions, are seemingly never-ending: What to buy? What to sell? What to hold? What will the Fed do? Where are markets headed? When will the next recession hit and why?
Below, we look at Jerome Powell’s recent capitulation to Wall Street, inflation reality, the danger of trusting the Fed and its empirical history of serving stock markets rather than citizens. Surface Shine Back in 1983, the J.P. Getty Museum was... Read more »
Below, we look at the historical parallels between prior military disasters and the current market calamity unfolding around us. Specifically, we trace how a misguided faith in otherwise arrogant and poor leadership leads to irrational carnage, the kind playing out... Read more »
Below, we get philosophical and financial, looking back on the year that was 2018 and what its condition portends for the year ahead. In particular, we’ll revisit the common yet essential themes of the rich vs. the not-so-rich, the Federal... Read more »
Below we take a first look at the December 2018 markets. Too Much Traveling… First, apologies for the delay in getting something out. December was a crazy month not only for the markets, but for my travel schedule as well.... Read more »
Below, we look at the best way to invest in a bad market that offers far more risk than reward. Lessons from a Surf Spot In Costa Rica, the waves are big, and for surfers paddling into them (duck-dive after... Read more »
Below, we re-cap market signals for the month of November, giving special attention to junk bonds (see video here as well) as the first shoe to drop as markets try to run, in vain, from an approaching bear. A Rocky... Read more »
Wall Street Disaster Below, we look at the notion of heroes and anti-heroes in a market overly awash with one too many of the following profiles: Woodrow Wilson, FDR, Richard Nixon, Alan Greenspan (et al), Leo Melamed, John Meriwether, Elon... Read more »
Below, we look beneath the waterline of record-high markets to reveal the debt iceberg directly off our economic bow. The Unthinkable The RMS Titanic is as an easy metaphor for disaster but deserves an irresistible revisit as the global and... Read more »