Cycles Do Indeed Eventually Come to an End


Underlying the majority of our current economics are headwinds stemming from a tighter Federal Reserve and a subsequent stronger dollar. Add to all that the #MAGA movement full of tax cuts and tariffs and a deglobalization that has punished the emerging markets at a time where their massive debt loads are being decimated by a stronger dollar and America first policy. These under currents are strong and will ultimately lead to an economic downturn as cycles do indeed eventually come to an end. We aren’t going to make a call as to when, but we are cognizant of the undertow and we are willing to react on a moments notice. We know where the money is hiding (US tech sector) and we know that the metals (hard money) is being culled by forced liquidation, something we have opined on many times in the past. In fact, the metals downturn led the equity downturn in 2007 and so its on our radar once again.

 

 

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PAST PERFORMANCE IS NOT NECESSARILY INDICATIVE OF FUTURE RESULTS. TRADING FUTURES AND OPTIONS INVOLVES SUBSTANTIAL RISK OF LOSS AND IS NOT SUITABLE FOR ALL INVESTORS. THERE ARE NO GUARANTEES OF PROFIT NO MATTER WHO IS MANAGING YOUR MONEY. THERE IS AN UNLIMITED RISK OF LOSS IN SELLING OPTIONS. YOU SHOULD CAREFULLY CONSIDER WHETHER COMMODITY FUTURES AND OPTIONS IS SUITABLE FOR YOU IN LIGHT OF YOUR FINANCIAL CONDITION.

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