Grandich Tidbits

 

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  • In my 31+ years in and around the financial markets, I’ve never seen both investors and professional alike so complacent with financial markets and their holdings. This despite a near record low in the VIX Index. It’s when, not if, a major change is near. My chicken outfit is on and fox hole has been dug out.
  • Most never grasped how close we came to entering the abyss in the last financial crisis. Banks are still doing wrong and I continue to believe an auto loan crisis is even more likely now. But hey, Google is up!
  • Oh yeah, did I also “mention” that there’s a $2 trillion pension shortfall and more U.S. businesses are being destroyed faster than they’re being created? But hey, Netflix is up!
  • While I would totally avoid U.S. High-Yield Bonds (not politically correct to call them junk bonds these days), Chinese corporate bonds could actually be even more dangerous (if that’s possible).
  • I can’t recall (it may be a physical issue-lol) any major investment vehicle with a couple thousand years track record being so under-owned and dislike (if not hated) as gold is now (especially when compared value wise to what most presently own). I doubt more than 1 in 100 investors have any exposure to gold. If you’re looking for confirmation to own it – forget it. The Don’t Worry, Be Happy crowd on Wall Street says “last one out, turn out the lights” on the gold market. If you believe investing is like a pendulum, gold has swung about as far as it could go (Current price $1,100 has about $100 risk lower with $500-$1,000 higher next 3 to 5 years) while financial assets (stocks and bonds) have already gone past the red line danger-zone. But hey, Japanese stocks are up!
  • Is water the new gold?
  • I’m no fan of Donald Trump and I think he’s just a flash in the pan. But a key reason he had a nice blip up is what he spoke about is how many feel in general; but not to the gutter level Trump took it down to.
    I think a far bigger issue that is only going to get much larger, is all things Muslim related. I’m not here to debate the merits, but because I believe America has entered its worst economic, social and political period in its history, the Muslim factor is going to be among the more controversial factors in this dark period to come. Call me politically incorrect, but not only has the Judeo-Christian fabric that greatly help make this country great for its first 200 years or so been ripped apart, but like our own President who refuses to even say the words Islamic Extremists, the longer America as a whole refuses to openly say what so many down deep know is the case – we shall only suffer more as time goes on.