Wednesday, July 6, 2016

July 2016 Market Commentary Summary

Three years ago, I met Fernando del Pino y Calvo-Sotelo at a CLSA(Credit Lyonnais Securities Asia) conference for a drink. Following our meeting, del Pino and I stayed in touch. In early January of this year 2016 he sent me an essay entitled 'The Five Experiments', which I think my readers, and their families and friends should study because most people take some social, political, and economic conditions for granted, and as if they were the ultimate Truth when in fact they are just experiments, and untested in the history of mankind.

Brexit is a blessing in disguise for the ruling political elite, central banks, their cronies in the financial sector, and for the multinationals, which benefit from complex laws and regulations. From now on, the elite can blame Brexit for all the world’s problems when in fact financial and economic cracks appeared much earlier.

Brexit is also a welcome event for the Federal Reserve, the ECB, the BOJ and other central banks around the world: now they have the perfect excuse to launch further quantitative easing measures in order to save the system.

Agriculture Crisis ?

Shawn Hackett of Hackett Financial Advisors, Inc. warns in a special update that, grain markets are in the early stages of a massive bull market that will complete by the summer/Fall of 2017 into a full blown food crisis.

I wish my readers a wonderful holiday season. 

Remember that, “Travel - its very motion - ought to suggest hope. Despair is the armchair; it is indifference and glazed, incurious eyes. I think travelers are essentially optimists, or else they would never go anywhere” (Paul Theroux, The Tao of Travel).