Trump: Trade Wars or a Fantastic Time?

If we do not have trade problems and we do the good things (tax cuts, infrastructure spending and deregulation) that he wants to do, it could be fabulous! (SPDR S&P 500 ETF Trust (SPY), SPDR Dow Jones Industrial Average ETF (DIA))

U.S. Dollar: It May Get Overpriced

My largest currency holding is the U.S. Dollar because I expect turmoil in world financial markets. When there is turmoil, investors will be looking for a safe haven. What will happen is that the U.S. Dollar will first get overpriced and if it keeps going, the U.S Dollar may even turn into a speculative bubble.

The World Has a Money Problem and Gold Will Benefit

I own gold but I have not bought any gold for a long time. But I own gold and I am waiting for opportunities to buy more. It it goes down I hope I am smart enough to buy a lot more. Before this is over, gold is going to go up a whole lot and gold may even turn into a bubble. The world has a huge problem with money. (SPDR Gold Trust ETF (GLD), Market Vectors Gold Miners ETF (GDX))

Bitcoin: The Solution For The World's Currency Problems?

The world has a huge problem with currencies and money and the world is looking for solutions. Computers are changing everything we know. I suspect the money problems, the currency problems will be resolved, changed or solved by the computers. Whether it will be Bitcoin or not, I do not know.

The Worst Economic Problems Of Our Lifetime Are Coming

We are going to have the worst economic problems we've had in your lifetime and my lifetime and when that happens a lot of companies are going to disappear. In 200 2008, Bear Stearns disappeared. Bear Stearns had been around for over 90 years. Lehman Brothers disappeared, Lehman had been around for over 150 years. A long, long time.

Interest Rates Are Going Much Higher

When interest rates start going up again permanently, when the bull market does come to an end in government bonds, interest rates are going to go very, very high.

In 1981, short-term in America were over 20 percent. Long-term bonds were yielding over 15 percent.

When interest rates go higher the junk bonds are going to get destroyed both by interest rates and by credit defaults. (SPDR Barclays Capital High Yield Bond ETF (JNK))

Is the Stock Market Right About Trump?

Well, yes and no. Mr. Trump has said he is going to do some wonderful things, like cutting taxes which is always great for any society, any country. He said he is going to rebuild the infrastructure which America desperately needs and it's good for America.

He said he is going to bring home the 3 trillion dollars which American companies have overseas. All of the things are wonderful things. If he can do it, it's going to be great!

But, Mr. Trump has also said he is going to have trade wars with China, Mexico, Japan, Korea and a few other countries that he has named. He said that on his first day in Office he would impose 45 percent tariffs against China. He has been there for a few weeks and he has not done it yet, but he still has it in his head, I am sure. Maybe he is just another politician like all the rest of them that says one thing but does not mean it at all. He has at least three people at high levels on his team that are very, very keen to have trade wars with China and if he does that, it's all over! 

History is very clear. Trade wars always lead to problems, into disaster and even to real wars. If he is not going to have trade wars with various countries, then chances are that for a while happy days are here. (SPDR S&P 500 ETF Trust (SPY), Russell 2000 Index ETF (IWM), SPDR Dow Jones Industrial Average ETF (DIA), Nasdaq 100 Futures)