Please note the political opinions expressed below are those of the author himself, and do not necessarily reflect the opinions of JP Fund Services AS.
Here I am, in a country where there are more pricks in its government than you would find on the average rose bush, a country where the main topic of conversation outside of politics revolves around which rubbish bags you put out on which day, and a country where the wealthy are leaving and the poor are spending like lottery winners, so the tax-man will have nothing to confiscate!
And if that doesn’t give you a clue as to where I am, then this is the final clue: I am in the only country in the world where the Prime Minister talks endlessly in public about the evils of the Russian Empire, but in his private time, he is allegedly getting a royal battering from Ukrainian rent-boys!
OK, so now you’ve got it. Yes, I am back in the UK, a country where the people cannot afford to feed their own, but are happy to open the door to millions of fighting-age men, whose only claim to fame is their ability to smash up 5-star hotels and, all too regularly, native women and girls, while the insane government pays for it!
Yes, the damn country is worse than a mess—it’s a lunatic asylum, and yet, investors believe its currency should remain strong, and its stock market should hold firm…
Well, if you believe that, I’ve got a bridge to sell you.
And if you believe the UK will be the bridge between the USA and the EU whilst the current crop of crackpots are in charge, then perhaps I’ll find a second bridge to sell you!
In my view, I would feel more stupid paying tax in the UK than I would if I sent a few hundred bucks to a Nigerian Princess who miraculously found out I had millions sitting in some obscure bank. At least the Princess would be less likely to be lying to me than the British government.
Look, it’s up to you what you do with your investment capital, but if you think you are safe putting it into some UK project which is not supported by the Marxist government, then you might as well send it to Lagos! At least that is a country making money out of its oil and gas.
I am sorry if this rant pisses people off, but I am in the UK, not through choice, but because I have to support some family members. As soon as that is done, that wonderful airline, Ryanair, will be getting some of my cash, and hopefully airlift me out of this backwater ASAP! (Failing that, I might borrow one of the 1,000 inflatable dinghies sitting on the beaches near Dover, and see if I can sneak past the French border police—which doesn’t sound like it’s too difficult!)
Let me put all of this out of the way, and try to get back to what is happening in the markets.
Firstly, it’s a sad week when you lose the wrong Prince of Darkness: Ozzy Osbourne has passed on, and yet the Fed Chairman is going to serve out his term. I am sure Trump would have liked things the other way around.
While it doesn’t make sense to me that people are turning their backs on the dollar, there is little question that the greenback is expected to continue on its downward trajectory over the coming few years. As I see it, the EU and a host of other Trump haters would love to see a weaker dollar, and they will all be praying that as the greenback falls, their own worthless paper might take the mantle of global reserve currency. But this is just further proof of the stupidity employed by our ruling bureaucrats.
A few years of dollar weakness will be good for the USA under the anti-globalist Trump. Its debts may be easier to pay off, providing there is growth and increased employment. Its exports will be more attractive, and as it becomes more self-sufficient, growing what it eats and eating what it grows, making what it needs and needing what it makes—a few years of this and we could see the USA in a much healthier economic situation. Of course, it will not be easy, but at least we are looking at an administration that has some sort of economic plan.
Europe and the UK have little to offer, and the more their currencies rise, the more their problems increase. As for China, the good days are over. American import tariffs, a weaker dollar, and widespread poverty across Europe all but guarantee that.
The weaker dollar is the main reason behind the rising values of indices, gold, oil, bitcoin, and a host of other instruments, so keep long, but keep your portfolio diversified. I am not blinded by the fact that we have seen some excellent rallies in the first half of the year, and would not be surprised if some decent corrections are on the way, some of which may prove painful.But for those with a bit of cash on the side, this weakness could prove an excellent buying opportunity.
But do not lose sight of the global political picture, and for me that picture says clearly: No matter what happens over the coming 24 months, don’t bet against the USA, and make sure your due diligence has been carried out to the maximum before risking it in the suicidal UK.
The post Fear and Loathing in the UK first appeared on JP Fund Services.
The post Fear and Loathing in the UK appeared first on JP Fund Services.
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