The Aussie market tends to follow global markets, particularly the US. For that reason, The Rum Rebellion will regularly keep you up to date with what’s happening in the world’s major markets.
Global politics is also at a critical juncture. There is a big-picture arm wrestle happening between the forces of globalism and those who believe in the pre-eminence of national sovereignty.
You can see this in the British peoples’ desire to escape from the stifling regulation of the European Union. You can see it in the increasing support Trump is getting for his ‘Make America Great Again’ stance, despite around the clock criticism and lies from the establishment media.
The Rum Rebellion stands for individual freedom. Decentralisation of power is the key to this. Globalisation, on the other hand, is a force for the centralisation of power and the slow and covert imposition of rule by unelected elites.
Our comments on global politics will rail against globalisation and rule by technocrats. It will include calling out fake news, as the establishment media is a key player in the globalisation movement.
What I haven’t talked about so much is the silver price. But it’s now starting to get sucked into gold’s orbit. Overnight, the price of silver surged to a 12-month high in US dollars…
It’s been all one-way traffic for the Aussie stock market this year. But we know this is unusual. Even the strongest bull markets have corrections…
If no one else is going to start questioning their motives, then we certainly should. Because you really have to wonder, don’t you? What is the point of ongoing rate cuts? If it’s to revive…
How do you repair an overleveraged balance sheet? You either sell off assets to pay down debt, or do a capital raising to increase equity. The global economy can’t sell assets to itself. So that…
The worrying thing for Aussie investors is that our market is simply not pricing in any negative outcome from the trade war. There is nothing, it seems, that lower interest rates can’t do.
Right now, the market still has a bullish belief that it’s ‘all good’. But in my view, this belief is in the process of shifting. You can see this subtle shift occurring across the world’s…
The stock market has been enjoying a ‘reflation’ trade since the start of the year. As you know, the Federal Reserve changed its tune about the pace of interest rate hikes by saying that rates…
These days, central bank created liquidity flows into asset prices, not wages and goods and services. It encourages the accumulation of debt, not equity (which is real wealth).
Who needs a strong economy to generate ‘wealth’? The message from this quarter is that a weak economy, supported by aggressive central banks, is all that’s necessary to boost your portfolio.
The cold makes people happy (and more productive…in every way…ahem). The warmth makes people unhappy (and less productive). And, as it’s been debated a lot lately, temperatures across the globe are changing.