Nothing changes, everything changes, action.
Nothing Changes. The US economy remains robust – strong consumer, strong employment, the first signs of increasing inflation.
Everything Changes. The rest of the world looks increasingly volatile, in large part due to the malign influence of the White House. A lack of truth, lack of trust, and lack of support for Trump at an international level, coupled with our unthinking application of trade tariffs has brought the international black swans into the sky. The breakdown of coherence and competence between the FED and the White House has threatened confidence in US economic management. Too much mismanagement, too little knowledge, too little experience, too little charm – degenerate leadershp is coming home to roost. Be very watchful.
– Sell any stock affected by the context above.
– Sell stocks with rich P/E levels, high debt, or question marks over their next quarter.
– Focus on America – centric, low P/E, strong next quarter stocks.
– Focus on gold.
– If in doubt cash out, take profits, live to fight another day.
Have a good day, James.
James is advisor to the King Wealth management Team at Merrill Lynch.