Some like it Hot
It sure is humid in Arizona! You know the nice thing about living in the desert, the weather. I like the hot. I’m the guy who goes and sits in the car, that’s been baking in the sun, and just sits for a few minutes to soak up the heat. Yes, then I turn on the air.
Many folks think I’m nuts because I usually have a contrarian viewpoint to just about everything. Sometimes it’s actually pretty lonely because I choose not to participate in conversations that I have no actual knowledge about. Conversely, it’s not that I want to argue, I don’t. I really hate conflict. I just prefer a deep understanding of a subject before I engage. Many of my acquaintances, colleagues, and friends are avid viewers of FOX news. Some are glued to CNN. We even change the channel on the lobby Television based on our client’s preferences before they arrive. It’s kind of funny to me how the conversations are exactly the same. Both are pushing an agenda. I prefer to watch Bloomberg and the BBC if I get the chance. For whatever reason, they seem to report on a story with more in-depth information and less of a political bias. I’m actually a reader. I read 2-3 hours a day and more on weekends. Mostly curated RSS feeds. Some are the government’s official information releases, so I can read the proposed and implemented legislation directly from the source. I toss in the Wall Street Journal, the Washington Post, and USA Today, and most recently, Variety. Oh yeah, don’t forget…Atlantic magazine.
These days it’s really difficult to understand the underlying focus of our political leadership. I do know one thing. The current president loves to stir the pot. Not just our pot of congress people and senators, but the pots of our closest allies and enemies. Someone once said keep your friends close by and your enemies even closer. Perhaps that’s what he is really doing. Russia, China, and North Korea are not close military allies; they are the enemy that NATO defends against. Have you ever heard the term “FRENEMY”? I’m not sure who coined the phrase but it’s a good one.
Where do we get most of our manufactured goods? Most manufactured goods we consume in the United States are made in China. Some of our cool stuff comes from South Korea (KIA, Samsung, LG). So, what really happens if we have a spat with North Korea? They mess with their neighbors to the south and interrupt the manufacture of cool stuff we need, like hard drives, which are now in everything we use. What if we REALLY have a spat with China. They will hold us hostage for our inexpensive gizmos, gadgets, and they may even remove their BILLIONS of dollars stored in US Treasuries. Then there is Russia. By land mass they are huge! They have more untapped natural resources (oil, gas, minerals) than just about any country. If you were wondering, the US has the planet’s largest oil reserves, tapped and untapped, on the planet; we just choose to use up the Middle East’s resources first. Just a little FYI.
The markets are doing well. Bond rates are increasing. Banks are starting to pay interest on savings. Mortgages are getting more expensive and existing home inventories decrease. Gold (and silver) is down, as it is supposed to be when stock markets are up. Hmmm, are things becoming more predictable? More normal? Is the economy actually growing? Is employment at an all-time high? Are new home construction starts increasing?
“What the heck is going on? I’m enjoying the ride, how about you?”