Our June issue of American Consequences is about the “silver lining” inherent in every gloomy cloud… at least when the sun rises behind it.
This month, we’re interested in the investment opportunities presented by the next market crash.
Because today, almost no one is worried at all.
Unemployment is at its lowest level in 50 years. It’s been 10 years this month since the current economic expansion began – tying the record for longest-ever business cycle upswing. And consumer confidence is at a six-month high.
That makes us nervous.
Unemployment did hit all-time lows in the late ’60s… spurred on by easy-money policies from the Federal Reserve. That era ended in a stock market crash of 40% in 18 months. And ultimately, unemployment would hit double-digits within 10 years of their lows while interest rates would top 20%.
The last 10-year economic expansion ended in March 2001, a few months after the S&P 500 benchmark index peaked and would go on to lose nearly 50%.
As for the recent consumer confidence highs six months ago… They came just before the market went into full panic mode, dropping nearly 20% before Christmas.
We’re prepared for when the crash comes. Because it is coming…
And we hope our next magazine – due in your inbox next week – will help you, too.
How’s your portfolio doing? Are you nervous or excited about the next few years? Write us at [email protected] and let us know.
Now here are some of the headlines we’re reading…
Is this one of the few things that both political sides agree on today?
The Nasdaq was dragged down by Alphabet, Facebook and Amazon.com on fears the companies are the targets of U.S. government antitrust regulators.
Politicians on the right and left are decrying the tech companies’ enormous power. President Trump and other Republicans have taken swipes at Amazon over taxes and at Google over search results they say are biased. Democrats have focused on whether the companies stifle competition.
Don’t look now. But it seems like cryptocurrencies might be back. As always, we remain skeptical, but interested…
Facebook has accelerated its plans to create a new digital payments network that would allow users to send money to each other and buy things on the platform, its apps Instagram and WhatsApp and across the wider internet.
The world’s largest retailer by sales has already filed for about 50 blockchain patents for everything from tracking shipments to operating drones.
The launch of the USC project, four years in the making, may herald a new phase in the banking sector’s adoption of blockchain, the record-keeping technology that underpins bitcoin.
Though, we suspect this fellow is unlikely to convince Buffett on the merits of cryptos over a few Smith & Wollensky steaks and Cherry Coke’s…
Buffett, who says there’s no value being produced from the asset, at least gave a nod to blockchain technology as “important” in an interview with CNBC earlier this year.
Welcome to summer in a liberal city…
The level of violence, which typically spikes during the summer months, eclipsed that of the three-day Memorial Day weekend when at least 43 people were shot, seven of them fatally.
Now beefs often blossom on social media over relatively minor matters – perceived insults or slights.
As of May 27, the city has recorded 131 murders, 10 more than this time last year.
There have already been more than 123 people killed to gun violence and more than 275 non-fatal shootings in Baltimore since the start of 2019
Careful what you wish for when opening the “Pandora’s box” of fairness…
Today, women have lower unemployment rates than do men. Women are more likely to go to college than are men and they are more likely to get a diploma… If these trends continue, it is possible that women will be earning more than men. Will Kamala Harris then want employers to have to reduce wages for women to equalize them with men?
And let us know what you’re reading at [email protected].
Publisher, American Consequences
With P.J. O’Rourke and the Editorial Staff
June 5, 2019