DAILY BULLETIN
Monday 21 November 2016 | | | We have reached a point where people are so tired of the current economic model that they're willing to support anyone promising to do away with the status quo and make life great again. It's hard to find fault, because the current model is obviously rotten and is overwhelmingly biased towards the incumbent wealthy. But, with Trump now elected as President, things may change quite rapidly in terms of monetary policy, fiscal spending, and ultimately in terms of growth and inflation. Or so we're told…
Until now, we have watched interest rates collapse and central bank assets soar. But such policy, mixed with fiscal tightening, has been relatively ineffective in terms of boosting growth to pre-crisis levels. Most of the positive effects have been lost in the translation from higher asset prices to higher growth, as the link between the financial economy and the real economy is clearly misunderstood by central banks. Explaining why central banks lost that link, what they can do to boost growth and how Trumpian fiscal spending may fare is my goal today.
The daily chart shows the pain the bulls have been in, with the spike and retreat a quite dramatic one over the past 10 days. The problem evident now is that this decline has barely been arrested by the main 2016 support area down to $1,200, and it would appear that unless something special happens, this will give way too.
| | | LATEST STORIES FROM OUR BLOG | | | by Zak Mir | Trading |  1 mins. to read
Given that Kennedy Ventures (LON:KENV) is a company focused on the resources space, and that since President Elect Trump came on the scene early this month things have been under something of a cloud, it is all the more pleasing that the stock has held up.
| by Evil Knievil | Evil Diaries | 1 mins. to read
Mitie (LON:MTO) continues its highwire act even though the wire has been seriously lowered. This business has gone wrong and it is unlikely that Phil Bentley can turn it round.
| | For the second year running, Master Investor is partnering with UK Private Investor portal, London South East (lse.co.uk), at its flagship investment event. Master Investor Show 2017 takes place on Saturday 25th March at the Business Design Centre, London.
| | by Zak Mir | Trading | 1 mins. to read
Given that 2016 was the year of the great mining sector revival, the worst case scenario would be that the latest fall in precious metals brings that revival to an end.
| | by Evil Knievil | Evil Diaries | 1 mins. to read
My best ever investment has been Golden Prospect perhaps twenty years ago where I was urged on by my pal, Richard Lockwood, a director and co-founder of the company. Family Cawkwell made £3.5m.
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"No man was ever wise by chance."
Seneca
| | | | TIPTV MASTER INVESTOR SHOW | | |
Is your portfolio ready for a 2008-style financial crisis? - Bank valuations already at lowest point since 2008 - a precursor to another blow-up.
- A real risk of Italy leaving the Euro, French insolvency, and Germany writing off huge loans to Southern Europe.
- Disruptive political events, like Brexit or the US election, threaten to throw markets off course.
- Will China's debt bubble finally burst, just when no-one expected it?
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