It is that time again and we have just closed the
second-quarter as well as first-half of 2013. It has been a decent start with
plenty of ups and downs and I am glad that we have our portfolio positioned to
enjoy more ups than down entering the second-half of 2013. We had plenty of
developments which rattled the markets and the global rally as well as fiscal
health of the global financial systems began to show its cracks.
Bernanke suggested that there could be an end to QE which
has dumb money investors begging for worse economic news and is one of the
clearest sign that the global equity market rally we saw from 2009 was built on
nothing but stimulus which artificially propped up prices based on hope that
inflated equity markets would spill over and create sustainable economic
growth; massive fail!
The housing recovery was credited with a substantial amount
of praise and cited as key to the economic recovery in the U.S. Ben Bernanke
just killed the housing recovery with his remarks of the end of QE which pushed
interest rates higher and makes affordability of mortgages that much more
difficult for an American dying middle-class who can’t afford to purchase home
to start with.
Dumb money has credited with Ben Bernanke with saving the
U.S. economy which displays one of the reasons why dumb money is called dumb
money. Ben Bernanke successfully kicked the can down the road and passes the
issues on to the next Fed Chief starting in January of 2014 which may be,
unfortunately, Janet Yellen. Bernanke seems to ignore the fact that there is a
public record of who initiated a moronic fiscal policy which will boomerang
back and history will show that Bernanke’s monetary maneuvers created a
temporary spike before bringing down the house.
That was exactly what smart money expected him to do and all
those who think Bernanke did a great job place them in the dumb money camp and
most likely are happy to do so. Obama-Bernanke is the worst combination for the
U.S. economy as well as for the U.S. budget. It is a dream team of destruction
which was supposed to be placed in office for one term only, unfortunately
plans have changed and they were allowed by decision makers to remain at
powerful positions in order to do what they were born and raised to do; fail!
Obama did a great job portraying his lack of intelligence and
promoting his socialistic health agenda while ignoring the economy altogether
which will start to extremely backfire starting in the second-half of 2013 and
going into Senate election season in 2014 where Republicans as well as Tea
Party activists will take away seats from the socialists and regain control of
the U.S.
Obama is not the only failure in office around the world; he
is joined by Merkel, Hollande as well as Abe in Germany, France and Japan. Investors
as well as traders should fasten their seatbelts for a spike in volatility
which will reduce the size of global portfolio over the next few years by over
50% while smart money should quintuple or more their accounts in the same time
frame.
The amount as well as combination of pathetic stupidity in
the global political as well as monetary arena is unmatched in history and they
will do an outstanding job in catastrophic mistakes and harmful policy
decisions which will sink the global financial world into the abyss.
On the forex front we expect the AUDUSD together with the GBPUSD
to outperform counterparts in the second-half of 2013 and the AUDUSD is our Hot
Forex Trade of the month for July.