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.
Arrowhead Asset Management