The Economy: The 2-track global economy continues to manifest. The U.S. expands at a pace that will force the Fed's hand. The balance of the planet is in various stages of contraction. U.S. real estate may or may not be rolling over … depending on who you're reading or talking with. The rest of the U.S. economy appears to be booming, if the stock market is any indication. China seems to be slowing despite glowing reports by the Chinese Communist Party. Of course anyone in China who counters The Party line is subject to the gulag Re-Education Camps … phenomenal motivation for being a perm-bull in all things Celestial. Across the pond, we're getting an education in parliamentary absurdity with Brexit. Shall we stay or shall we go. Who knows and quite frankly, who cares. To paraphrase Churchill, it's a circus, wrapped inside skullduggery, inside a leadership void. Wake me up when it's over. The EU is on a similar glide path as China and Brexit. Mario Draghi remains a stooge of the Bundesbank and Deutschland Uber Alles. The Untermensch are in revolt as Hungary, Poland, Greece and Italy lead the charge against open borders and the Open Society Foundations. Capitalism is on the rise in former Communist countries while it’s gasping for air here in the U.S. Opportunities abound.
Food for Thought: Central Bankers called in their respective Plunge Protection Teams at the end of December/beginning of January to end the slide in global stock market. Hence the V-shaped recovery that has seen indices heading for new highs. Whenever you see that type of V-shaped bottom, you're seeing massive manipulation at work. We'll see how it turns out and whether you should have taken the opportunity to lighten your equity exposure and count your lucky stars. The trillions that the PBOC pumped into the Chinese economy is spent. How much more of taxpayer money can be pumped into global Zombie banks and corporations is up to speculation. But we are seeing signs of revolt by hoi polloi. Our own Democratic Socialists are calling for the breakup of social media companies. Legislation is rumored to be introduced regulating or banning share buybacks. There is talk of taxing the rich. The proof of the pudding will be in how much ground these movements gain as the 2020 Presidential election unfolds. We are astonished at investor complacency. More time is spent planning that Endless Summer at Cloudbreak than is spent on exit strategies. Much of that is because Advisors are on autopilot. We continue to see opportunity in special situations. Long-term trends favor several beaten-down sectors. Be ready for increased volatility in your assets. Be a leader not a follower.