Hello traders everywhere! Adam Hewison here, co-founder of MarketClub with your mid-day market update for Friday, the 14th of September.
The older I get, the more I realize that there are no new fiscal ideas. The Fed is basically recycling an old inflationary idea to try and get us out of the current mess. They are cloaking this in job creation, but what it tells me is that the US is in a far more serious economic condition than possibly any other time in history, including the great depression.
As for reducing the unemployment levels, that is going to be a much more difficult challenge as unemployment is going to remain stubbornly high. We are losing manufacturing jobs in the US and everything is turning or has turned to high tech and the Internet.
Take a company like Facebook, it runs on just three or four thousand employees. How are the Facebook's, Amazon's, and Google's of the world going to reduce unemployment? They cannot reduce their labor force and skill sets change in the blink of a nano second. A labor force that is uneducated, not online or too old, is going to have a tough time in the new online world. I know this sounds harsh, but that's the reality of today.
Back to the markets, as we go into this weekend it could be an excellent time to look for new 52-week highs in commodities, stocks, and any other market that is making a 52-week high.
Our Trade Triangles have been telling you that the equity markets and commodity markets were headed higher and that inflation was on the way for quite some time.
I will be out cruising in the Gulf of Maine aboard a three masted schooner for the next four days and will be pretty much out of touch. Jeremy will be doing the daily update for me until I return. Have a great weekend and every success trading these inflationary markets.
Now, let's analyze the major markets and stocks on the move using MarketClub's Trade Triangle Technology.
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How can we ever get out of this hole if we can't make anything cheap enough to sell it? When GM folded, it was because the wages were, with all the package, $58 per hour. The unions have forced us out of the worlds markets. We have become so spoiled, that we expect someone or the government to provide luxurys our parents never knew.
We have some hard adjustments to make in the years ahead.
We don't get out of the hole to make anything cheap, we use NATO to bomb countries like Libya back into the stone age to drive its wealth back into the first world. Military access to cheap resources and labor by utilizing the fed to pay for it. I haven't a clue how long we can do this, but what I do know is I want no part of it.
Adam, be sure to post some pictures on your return. A couple weeks ago, I was sailing Lake Superior for 7 days in a Jonmeri 40, it was challenging at 25-30 knots in 2-3 meter waves. It is the best way take a break from the real world, you forget about everything because you have little time to thing about anything other than sailing and navigating.
Thanks for the comment Adam.
I think US will need much more than QE's to go further than 2015.
They will need something impossible to buy (or sell), I'm talking about creativity, leadership and respect.
By the way, it's really annoying to always have to enter our username and password every time we want to watch your video.
Is there a way for you to automate the process? Thanks for taking this into account.
I couldn't agree more. I have stopped watching for that reason. It belies an aggressive sales approach. The "man of integrity" voice that Adam portrays makes one wonder what is really behind the curtain and seems in conflict with his casual, insouciant manner. It makes me feel churning out volume is more important than acquiring a loyal base.
Peter,
An easy way around the login is to bookmark the page once you have logged in. Then you can reference that bookmark every time you want to watch a video. This will keep you form having to keep logging in.
Best,
Jeremy
fed is trying to invigorate housing, hence housing employment, the oldest pump in the country. there are old and easily learned skills in this business. Pretty soon we will be "clear cutting" old homes and building more new ones. As you noted new skills are hard to learn except for the very young. Pumping up housing contruction is the old staple stable boost that the fed has always used. It didnt work last time because so many new homes had been built on artificial $ because of the flaws in mortgage financing. now it will because low rates will goose it. have you been sailing on the old 2 masted bugeye that i believe is in Shady Side. If so let me know how it is. It used to be mine. george oram
You got it, Adam.
Here is another similar take:
"The failure is stark and clear. Monetary policy has gone amok. They have no solutions, so they press harder in the same reckless direction. What the world is witnessing is the official institutionalized ruin of sovereign bond markets in the United States and Europe, which serve as foundations for the USDollar and Euro currencies. Both currencies are doomed to the dustbin of history, all in time. Central bankers have lost all credibility, cornered without options in a public way. Central banker appear writhing flailing wiggling as they apologize for lack of solutions, while their integrity vanishes like an oily mist off an overused printing press. Central banks are presiding over wrecked bond markets, wrecked currency markets, and a divergence gold market (paper versus physical). They are at the helm of giant vessels, which are sinking from their own ordered liquidity measures, taking on water, unable to negotiate around icebergs.
No solutions are being pursued by the central bankers, their partners at the giant banks, and their subordinate henchmen that occupy key government posts. The path to remedy is not complicated. Liquidations must provide the foundation of solutions, not amplified liquidity. The broken structures cannot be puffed up. Rather they must be dissolved, something abhorrent to the ruling elite. No viable solutions are being pursued, only preservation of the power structure at all costs." http://www.financialsense.com/contributors/jim-willie/no-cb-solutions-liquidity-vs-insolvency