Anything related to gold and silver is toxic right now.
The USD is having a field day this year, with investors frightened out of Europe, moving into the loving arms of the Federal Reserve and the Almighty Buck.
There’s one problem with this behavior, though, it’s warped and totally ineffective.
The incentive to hold cash, at the moment, isn’t exciting whatsoever, at least not to Portfolio Wealth Global.
Why in the hell would I put money in the dollar, when I could easily make a 14% yield, buying the largest oil MLP in the world, for example, for half the price it possessed in 2014.
It doesn’t make any financial sense to hoard cash when I could lend money, in the short-term, to borrowers, using PeerStreet.com, for instance, and make a 6%-8% return and stay liquid, to take advantage of opportunities.
The only reason to own cash is to avoid the consequences of broad deflation, where asset prices go down, across all sectors, but the trend the world is headed for is inflation, which is why the FED is tightening.
There are many choices, which are far more lucrative than cash.
Gold and silver are also suffering from this USD rally, but the dollar is becoming overbought.
It is a testament to Trump’s success to bring America back to the center stage, as the place where business is respected and money is treated well, which is driving this rally, but the price he is paying to restore America’s role, in the form of tax cuts and deficit spending, is not to be overlooked.
I wouldn’t be surprised, in the least, if tomorrow, 242 years after the founding fathers drafted the greatest document the world has ever known, the U.S. constitution, we see an altogether different country, one that doesn’t want to live together anymore, but instead wants to keep eating a “free lunch,” on the backs of its lower income citizens and on the backs of slave-labor nations.
The United States is such a divided economy that it isn’t intelligent anymore to release broad statistics, such as the Financial Conditions Index, since one state could be rebounding, while many others could be suffering, and even within the same state, some occupations could be thriving, while many others are declining.
I’ve been around the U.S. and every state is in a different situation, relies on various sectors, has a separate taxation system, views cannabis legalization and cryptocurrency regulation in a different light and sees business growth with a whole other set of eyes.
As we enter this Independence Day, think of your own location within this giant global economy, the sustainability of your profession, the talents you are not fully capitalizing on and could be unleashing for the betterment on your financial condition, and your current location, in terms of living arrangements and where you would like to be.
This is a great time to make big, bold decisions, because opportunities are abound to be a part of the future, while the economy wraps-up a 9 year bull market train and interest rates get back to norm.
Research Partner, PortfolioWealthGlobal.com