I’m back and pumped!
Yes, I took a sabbatical from blogging over the last little while to effect some changes in my life. First, because of a red-hot Toronto real estate market my wife and I put our ‘downsize’ housing plan into action. Selling the big and cash draining primary residence to a bidding frenzy at the same time getting architectural plans and applying for municipal permits of a secondary property we purchased some 10 years ago.
At the same time, I was impacted by some physical ailments. Yes, we are all getting older but you don’t appreciate your health until it’s impacted by something no doctor can seem to diagnose. But I’m better now!
So after selling our house, going through and throwing away all your stuff – thank you Marie Kondo – moving to a rental and going through the painful process of municipal permits and initiating construction; life is getting back to normal. And my desire to blog has never been stronger.
And Thank You Americans for Electing Donald Trump!
Folks, I will be blunt here. We were all dying…economically. How do I know? Countries of the world producing about 25 percent of global economic output had negative interest rates. Think about this for a second. Negative interest rates! How many economic textbooks do you think have been written since the dawn of man, some 10,000 years ago, have a chapter, page or a sentence about negative interest rates? None that I have found.
You can’t have capitalism without a cost of capital. You can’t have a functioning economy without capital investment and a banking system that rather sit on excess reserves and not issue credit to those businesses wanting to expand and hire additional workers.
That’s right, everything in our economic world was slowly and surely dying until something big happened on election night.
Call me crazy but I see it… I see it in the equity markets. I see it in the bond markets. A financial earthquake has occurred, which is a good thing, and we are at the very beginning of a special economic run that comes along very infrequently in a lifetime and I want to blog about this. I want to make sure everyone who is interested in Model Price Theory (MPT) gets on the bandwagon. The fruit is hanging so low, on big bountiful trees, that making returns on specific equities that have done nothing for the past 8 years is the easiest thing that one can do.
And the financial press will not get what is going on, which is typical. They will worry about raising interest rates – MPT tells us raising interest rates will very be bullish for equities – and the impact on business and consumers with high debt levels. They will also freak out about rising and unsustainable sovereign debt levels of individual countries and the bad things that could happen. Yes, they could in the long term but in the short term – the next 5 to 7 years – there will be huge positive effects both on corporate profits and normalization of the world economy.
Yes, the Donald is a racist, xenophobic pig. I get it. But America was going to go the tubes economically and we needed to go down a different track. Things needed to be shaken up! America needs to feel good again. American business needs to feel confident again. AMERICA IS NOW THE UNDERDOG IN A WORLD THAT WILL BE DOMINATED BY CHINA AND OTHER COUNTRIES FORMING THE ONE BELT, ONE ROAD. (More on One Belt, One Road in later blog posts if you don’t know what I’m talking about.)
The elites were killing us like the elites of Europe. In one election, albeit a very important one, this has changed the equation…totally.
And for the better.
I’m so excited and as I said ‘pumped.’ I now have a reason to be positive about the future for my children and my future grandchildren. I see a runway for the normalization of financial markets and growth for future generations where I saw none before.
Harsh, I know but realistic.
And you should be ‘pumped’ as well.
I will be expounding more on why you should be ‘pumped’ in the coming blog posts. The economic game has changed and hopefully by looking at our Model Price charts and learning more about Model Price Theory (MPT) you can see this great upcoming period unfolding and profit in real time.
Talk to you soon.