Euro Break Up, European Bonds

If the European Union starts breaking up or the Euro starts breaking up that's gonna throw a spanner and a lot of people's works. Nobody's really sort of planned on that. Most of the euro bonds, none of them,  very few of them have any provision for what happens if there is no Euro.  I mean, Italy owns several billion dollars worth of bonds. Suppose Italy pulls out of the Euro and they suddenly says, "okay we're gonna pay you back in Lira". Well that's that's gonna confuse a lot of people and caused a lot more turmoil.

Investing: Russia, China

I’d rather invest in Russia (Market Vector Russia ETF Trust (RSX)) than in Germany (DAX Index). I’d rather invest in Japan (Nikkei 225 Index) or China (Shanghai Composite Index) than in America (SPDR S&P 500 ETF Trust (SPY)). America is at an all-time high, and no other nation in the history of the world has ever been this in debt.

Trade War: Where Will China Strike Back

In a recent interview with RT.com, Jim Rogers shares his views about the impending trade war between the U.S. and China and where China should strike back:

“China’s a huge buyer of American agriculture, so of course that’s the obvious place to hit back because that hurts Mr. Trump the worst. It’s not Americans, it’s Trump. Trump and his guys, those are the ones they have to hit,”

A Trade War Would Cause A Catastrophic Bear Market

In a recent interview with RT.com, Jim Rogers explained that a trade war between the U.S. and China would cause a catastrophic bear market in stocks:

“The next bear market is going to be the worst in my lifetime, just because of the debt, but if we also have a trade war, it’s going to be worse than a disaster,”

Will Bitcoin Succeed? A Few Thoughts.

Regarding Bitcoin I repeat what I said about IBM and computers: the people who invent something don't necessarily become the ones who succeed. 

We do know that the world has a money problem. We do know that the Internet is changing everything we know. My children will probably never go to a bank when they're adults. My children will probably never go to a post office when they're adults. So the Internet is changing everything we know and it's going to change money.

If you go to China now most people don't have money. If they want to buy a cup of tea they put their phone on the spot. If they want to buy a car they put their phone on the spot. So the Internet is gonna change everything we know.

How it's going to evolve I don't know. I do know that governments do not like to lose control., governments want to control everything, the crypto people say, "yes, but we're smarter than the government" and they are. Everybody's smarter than the government but the government has more guns than everybody else so if the government wants to control money they will.

Tariffs Are Not Beneficial

Former U.S. Representative Ron Paul explains why tariffs are not beneficial.

Related stocks: 

• United States Steel Corporation (X) 
• Boeing Co (BA)

Video: Junk Bonds, Stock Market & Interest Rates

Michael Pento interviews Jim Rogers. They discussed the U.S. Economy, precious metals, interest rates and junk bonds.

Related trading instruments: 

• SPDR S&P 500 ETF Trust (SPY)
• SPDR Dow Jones Industrial Average ETF (DIA)
• SPDR Barclays Capital High Yield Bond ETF (JNK)
• SPDR Gold Trust ETF (GLD)

Views On Real Estate

Suppose that interest rates go to 6 percent which historically is not so high. Many, many places are going to get killed in real estate. There are plenty of places where real estate is still reasonable. Not in most of America and certainly not in Singapore. I would not suggest buying property in many Asian cities.

Investing: Looking For A Safe Haven

If I were looking for a single safe-haven in 2018, 2019 I would say the U.S. Dollar and if I'm right it is going to get overpriced and it can turn into a bubble if the turmoil really gets bad. If that happens I hope I'm smart enough to sell.

Markets: I'm Short Junk Bonds

I'm short junk bonds. The yield spread between junk bonds and AAA bonds now is very, very narrow (never been this narrow) and when interest rates go higher and they have already started going higher, junk bonds are going to get killed.

Related trading instruments: 

• SPDR Barclays Capital High Yield Bond ETF (JNK) 
• iShares iBoxx $ High Yid Corp Bond (ETF) (HYG) 

The Worst Bear Market Of My Lifetime

We are going to have the worst bear market of my lifetime and I'm older than you. I have seen same bear markets. It's going to be a mess.

Related trading instruments: 

• Russell 2000 Index ETF (IWM)
• SPDR S&P 500 ETF Trust (SPY)
• SPDR Dow Jones Industrial Average ETF (DIA)
• iShares MSCI Emerging Markets Index ETF (EEM)

Everybody Owns The Same Stocks

Everybody owns the same things, it is eve more narrowly focused now than in previous bull markets because it is now so easy to buy exchange traded funds (ETFs). If you own stocks that are in ETFs, I want to know what they are. These are the stocks that have not been going through the roof, that are still cheap. 

Related trading instruments: 

• iShares MSCI Japan ETF (EWJ) 
• iShares MSCI Emerging Markets Index ETF (EEM) 
• SPDR S&P 500 ETF Trust (SPY) 
• Russell 2000 Index ETF (IWM)

Market: Treasury Yields Will Keep Going Higher

In September of 1981 the long-term bond in America was at 15.50%. I'm not talking about junk bonds, I mean Treasury bonds. By the way, one other thing, in 1981 America was a creditor nation. Now we are the largest debtor nation in the history of the world and the debt is getting higher every day, every hour.

The Next Bear Market Will Be Awful

2008 was awfully bad but since then the debt has gone through the roof, goverment debt alone has doubled since 2008. So the next bear market is going to be the worst in our lifetime. 

Related trading instruments: 

1. Russell 2000 Index ETF (IWM)
2. Nasdaq 100 Futures
3. SPDR S&P 500 ETF Trust (SPY)
4. SPDR Dow Jones Industrial Average ETF (DIA)