Investors are wilting. In these hot, hazy, humid days of summer, they are growing languid, squishy... and soft. They go to the beach. They think of other things. They read novels... or the mainstream press. Their brains turn to mush. There is little to report from yesterday's market action... which leaves us free to think about other things. What will we...
Is it a revolt?" Louis XVI asked the Duke de La Rochefoucauld. "No, sire, it is a revolution." We are already at the Ides of July. More than half of the year is already behind us. Friday, markets were flat. Neither gold nor stocks did anything worth reporting.
Not much in the markets today to draw our attention. Other than another pronouncement by the Fed that it will remain "highly accommodative" for the so-called "foreseeable future." Then whither our thoughts? How about to the end of the world as we know it? This from The Wall Street Journal:
Everything is looking good for the US of A! Or is it? The dollar – up. Auto sales – up. House prices – up. Consumer confidence – up. Consumer credit – up. Stocks – up.
Let's see. Where are we? Dow up 88 yesterday. Gold up $22. What's pushing up the Dow? A lot of chatter about a "new American century"... and an apparent recovery. You know our position: Recovery isn't possible. Drug addicts do not recover by taking more drugs. They may get high again... but that's a different story.
The Fed's EZ money policies will either succeed or fail. Either way, it will be a disaster. If they succeed, interest rates will rise... and America's debt-addicted economy will get the shakes. If they fail, the Fed will double down with further acts of reckless improvisation – including bigger doses of credit – until the whole thing blows up.
Today, I want to do something a little unusual... I want to tell you why I've set up something called a "family office." Family offices have for hundreds of years been protecting and growing family wealth, based on a number of unique long-term investment strategies.