Thursday, May 17, 2018

There's No Such Thing As Free Trade Or Free Money

For the record, Trump is right - free-traders are proven idiots. There are no other countries in the world that practice free trade. Many claim that the U.S. should have stayed on the gold standard which would have made colossal (trade/fiscal) deficits impossible. Perhaps so, ~50 years late. More importantly, what allowed the U.S. to adopt a gold-backed currency in the first place was its massive hoard of gold. Acquired how? Trade surpluses...

Nevertheless, attempting to pick the raisins out of the Globalized oatmeal is not going to work:

Emerging Markets are getting annihilated by strong dollar, higher rates, and the imploder-in-chief

A death cross in China Tech attended the August 2015 Smash Crash, and death cross is once again imminent:

Fracking stocks are "leading". We haven't seen that since the top in late January

Nevertheless, a late cycle bid for small insolvent Energy stocks doesn't end well