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Putin Considering Not Running Trump for Re-Election In November

So now that I have your attention, let's get down to business with the July monthly Update.

In these growingly volatile and politically ugly times, it is important as your investment manager that I look at everything that could affect our investment decisions and success going forward.

Regardless of whether we continue to see irresponsible Federal and specific State leadership toward the Covid-19 crisis or whether we watch the predator Donald Trump go full on racism trying to motivate his gullible "white victim" voters by using the BLM movement as his latest scapegoat, a divided America is an America that is sure to fail economically.

From a macro-economic perspective, the good news is that the Wall Street investment economy will continue to be supported by the massive corporate welfare policies of the Mnuchin Treasury, the Federal Reserve Board, and the lobby money chorus of the moneyed elites.

These policies may be bad for Main Street, but they continue to prop up Wall Street, until they don't.

Investment Trends and Money Flow

Regarding our two separate US economies (the Wall Street investor economy and the largely ignored Main Street economy - we really cannot trust most of what our current Federal or State political leadership tells us, including when it is safe to open up the economy again.

Instead, we must use intelligent problem-solving, verifiable science, and/or practical common sense to make best guess decisions about how to stay healthy - while minimizing harm to our domestic economy. 

To prove this point, we are now able to see what happens when large groups of citizen lemmings follow the advice of incompetent governors (mostly Republican at this point), whose brown nose emulation of Donald Trump's idiotic Covid-19 policies have proven deadly, to say the least.

But then again, maybe what we are seeing is the irony of Darwin's theory of natural selection. Some call it "culling the herd."

The chronic destructiveness of income inequality

When all the divisive political drama is disagreed, the ever prominent problem of national income inequality - directly fostered by morally corrupted politicians who care only about their re-election and the wealth hoarding of their lobby money corporate enablers - is the primary underlying culprit behind almost everything dysfunctional the United States is currently experiencing:

1) Young demonstrators of all races are sick of crappy low paying jobs with no future, justifiably demanding change.

2) Violent white supremacists (trapped in their obvious cognitive inferiority) - who clearly support Donald Trump - are still demonizing Jews, people of color, and Muslims for their own economic plight, playing "victims" while promoting racist "dog whistle" beliefs condoned in silence by much of the Republican Party. 

3) Anarchistic looters, with no meaningful political agenda, desparately steal consumer junk, while police stand around and do nothing, who are then opportunistically lumped in with the vast majority of peaceful and justified demonstrators.

4) Corporations and businesses outside of the technology sector are caught in the middle of a deeply flawed Federal government response to the Covid-19 pandemic. The deadly pandemic denial by Trump and his cult US Senators / Governors have severely exacerbated the sickness and deaths of Americans, which has skyrocketed national unemployment and the collapse of consumer spending. As a result, companies are cutting back on production and customer service, challenging business profits and eventually the stock market.

5) Disengenuous evangelicals, who claim to be righteous Christians, look the other way to the point of enabling the ongoing economic decimation of our country with their deeply hypocritical reverence of a US President who is by his actions appear not Christian in any way other than opportunistic political rhetoric.

Yes, America is in trouble!

If anyone or anything is at fault for our Nation's current state, it's plainly the American voter who perenniallly allows themselves to be duped into supporting self-serving politicians who promote diversionary culture wars that only serves to increase the power of a wealthly elites - who ultimately care very little about the American middle class or poor.

Hey, I know my job is only to effectively and competently manage your money. It is not to be a political analyst. However, the growing national chaos we are witnessing under an increasing dysfunctional and unhinged Donald Trump - and his irresponsibly complicit Republican Party - cannot be ignored.

In my sane and informed view, new national leadership is the only responsible option now, even though it should only be an interim measure while a younger more intelligent and sane leadership can be groomed. Americans can no longer tolerate the chronic failed leadership of a wealthy and out of touch gerontocracy. 

Going forward, if Biden is elected, as a nation we cannot again do what we did with Barack Obama, which was to create a a sort of liberal cult around Obama's positive "feel good" spiel - and then pretend everything was working out for the country. It wasnt, and we are paying the deep price now for that complacency with the election of this extremely dysfunctional predator we now have in the White House.

Our Investments Going Forward

For the rest of the year, we certainly cannot be cavalier about investment decisions.

There are plenty of valid arguments as to why there could be a bad economic outcome down the road: 1) the November election, 2) the Fed's massive corporate bailouts and the inflation that is inevitable as a result, and 3) continuing social unrest caused by unacceptable wealth disparities, uncloseted racism and hate, pathetic politicians, etc. - that we must inevitably address.

When I look at life outside the markets, all problem-solving Americans must again begin thinking about the important and relevant issues that affect all fellow Americans. It is time for US citizens to stop the ridiculous Jim Crow culture wars and make some major changes.

Finally, in most of our Fidelity accounts, because of its inherent investment diversity and flexibility, we are well positioned to make money in ANY market environment, whether it is going up - or down.

And we are well prepared to make that happen.

Rocky Boschert

Arrowhead Asset Management
www.TexasORP.com

512-751-7363 

#HateHasConsequences

Our Monthly US Economy and Fidelity Investment Update

May 1, 2020

Economic Fact: When the 2400 combined stocks of two small and mid-size company indices (IWM & MDY) are underperforming the performance of the large company stock index (SPY) - the US economy is failing most of the American people.

Put another way, when the powerful lobby money Wall Street corporate elites (and their largest S&P 500 companies) are the primary stock performance beneficiaries of the political economic policies of their (s)elected US Federal government, the US politicians and their corporate masters are either corrupt, incompetent, or both (regardless of political ideology).

Hence, below is the current real life "performance" look at the US economy as represented by the overall US stock market for exactly the past 3-years (June 1, 2017 through May 31, 2020):

SPY (500 Largest US companies):          + 42.4% (12.7% annually)
IWM (2000 Smallest US companies):      + 7.17% ( 2.2% annually) 
MDY (400 Medium-size US companies:  + 9.51%2.9% annually)

Specifically, the 3-year stock index performance numbers above speak volumes about the success or failure of our current National political leadership:

* Because SPY is seriously outperforming both IWM and MDY, the current political and corporate leadership is failing most Americans.

The success or failure of the US economy can only be judged by the performance of the entire stock market

Using the US stock market as a reliable and practical gauge for the current health of our total domestic US economy, one can look at the comparative 3-year plus performance of the combined US stock indices that include the 1) small company stock index (symbol IWM) and the mid-size ompany stock index (symbols MDY) - and compare these true US Economy indicators to the big lobby-money controlled "politically-connected" large Company stock index represented by the the Standard and Poor 500 index (symbol SPY).

Why? Because only when the smaller company US economy is doing well we are truly seeing a democratically-led political economy.

In other words, the intermediate to long-term performance of both IWM & MDY - compared to SPY - is a much more reliable indicator of the underlying success of the US economy - under whatever National political "leadership" we currrently have

When IWM & MDY each outperforms SPY over a 3-year period, only then is the US economy is doing well for most Americans.

For the most part, in our quest to be informed about our money, it is best to ignore or independently question the political rhetoric we hear from the Wall Street lobby money controlled politicians - especially the extreme ideologues currrently in the White House, US Congress - as well as the self-promoting that comes from the big corporate media like Fox, CNN, and MSNBC.

Put another way, if the smaller US stock companies are seriously underperforming the large stock companies - those that are contributing $ billions more lobby money to the politicians who write the business and tax laws, the US economy is not being managed or led well by the powerful lobby money "corrupted" two-party political duopoly.

Rocky Boschert

Investment Updates and Financial Information for Investors

Useful investment, financial and applied economic information

Presented below are a few links of varying worth for your own financial edification or analysis.

Some of the websites are well known, others are somewhat obscure, but generally are well-written and informative.

We will regularly add to the links below as we find them, assuming they are deemed beneficial to our quest for intelligent information for our client readers.

Corporate:

Fidelity Investments: https://fundresearch.fidelity.com

Bloomberg: www.bloomberg.com

Yahoo Finance: www.finance.yahoo.com

CNN Money: www.money.cnn.com

Morningstar Research: www.Morningstar.com 

iShares ETFs: https://www.ishares.com

State Street SPDR ETFs: https://www.ssga.com/us/en/institutional/etfs/fund-finder

Invesco ETFs: https://www.invesco.com/us/financial-products/etfs

Fiscal Times: www.fiscaltimes.com  

Business Insider: www.businessinsider.com

24/7 Wall Street: https://247wallst.com

Alternative:

Fossil Free Funds: https://fossilfreefunds.org

Deforestation Free Funds: https://deforestationfreefunds.org

Weapons Free Funds: https://weaponfreefunds.org

Marijuana Biz Daily: https://mjbizdaily.com

SoberMoney: https://sobermoney.org

Angry Bear: https://www.angrybear.com

Wall Street on Parade: https://wallstreetonparade.com

Naked Capitalism: https://www.nakedcapitalism.com

Rigged Game: https://riggedgame.blog

Rosenberg Report: https://www.rosenbergresearch.com

Talk Markets: https://talkmarkets.com

Quantitative:

Stock Charts: https://stockcharts.com

Fear & Greed Index: https://money.cnn.com/data/fear-and-greed

US Debt Clock: https://usdebtclock.org

  

Financial Links

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