Food for Thought

Food for Thought

Picked up some interesting tip bits from Jeffrey Saut this morning at https://www.raymondjames.com/pdfs/share/morning_tack.pdf

‘With all the current “chaos” in the media, I have to complete my thought and tell you what

I am convinced is going on. The People’s Republic of China has three major objectives right now: 1) Hurt the USA, 2) Prop-up their currency, and 3) Obtain cash to stimulate their economy.Therefore, given the fact that U.S. Treasuries are getting clocked, but utilities are rallying, I am convinced the jump in interest rates is due to the Chinese selling vast amounts of their Treasury holdings.By selling them they, 1) push U.S. interest rates higher, which hurts the U.S. consumer and possibly President Trump’s approval rating right before an election,

2) They get billions of U.S. dollars, allowing them make open market purchases of the

renminbi, which supports its value in international markets, and 3) with all those renminbi

they can now freely spend inside the country of China to stimulate their economy. With one transaction they accomplish three major objectives. This is the only thing that makes sense to me. And if I am right, once that selling subsides, we are in for one major rally in the U.S. financial markets.’

Joe Monaco, Monaco Capital

‘Fear surged today globally. Few realize that the sell-off presents an outstanding buying opportunity as the market is grossly oversold and pessimism is at an extreme  (conditions seen at market bottoms). As mentioned in my most recent report, investors should be buying into further weakness as further weakness will cause the market to reverse to the up side. Earlier tonight, the Dow Future was down 228 points, but has recovered more than 50% at this writing.Clearly, the market is showing downside resistance. Hence, if the market drops further, redeploy cash. A more detailed illustrated report will be sent tomorrow. Remember what Warren Buffett said: "Be fearful when others are greedy and be greedy when others are fearful." Refrain from joining the crowd.’

Leon Tuey

The markets are always interesting...and the media is very predictable. Don't listen to them...