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YOUR BEST SOURCE FOR THE UNBIASED MARKET COMMENTARY YOU WON’T GET FROM WALL STREET | ||||||
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Editor’s note: Due to the urgency of events just four days before Inauguration, we are sending you this entire article here.
Dear Subscriber,
If
you think Mr. Trump is just blowing smoke when he rails against
Washington’s bloated bureaucracy, you’d better sit down and brace
yourself for a series of shocks …
Shock #1. The federal government’s complete failure to pass its audit:
Just four days ago, the Government Accountability Office (GAO) released
its full audit report covering fiscal year 2016 … and it’s a disaster:
The U.S. government failed the audit on about 34% of its assets.
This
is crazy. When you run a public company, if your books are so botched
up that your auditors refuse to give you a clean bill of health, it’s
the kiss of death. But for the federal government, it’s routine; Uncle
Sam has failed his audit in every single one of the past 20 years.
Here’s
what’s new: Mr. Trump is the first president since Ronald Reagan with
an explicit agenda to disrupt the status quo. Will that include a reorg
that cleans up the mess? That remains to be seen. But if ever there was a
president who has explicitly expressed the intent to tolerate some
disruption for the sake of long-overdue fixes, Trump is it.Shock #2. The messiest department of all: According to the GAO, the U.S. government department with THE sloppiest accounting and THE most waste of all is none other than … the Department of Defense.
This also
happens to be one area where Mr. Trump, General Mattis and the
Republican Congress are unanimously gung-ho — to invest the most money.
But that also raises some urgent questions:
As they move to boost defense spending, will they also tackle the waste at the same time?If so, what kind of disruptions will be needed to really make a dent? What will be the impact on major defense contractors?
Will they actually do it?
Trump’s
pre-election Tweet against Boeing denotes a keen awareness of the
problem. But the nightmarish logistics of cost-cutting indicate that he
may first have to focus on the defense build-up, and only secondarily on
the complex, time-consuming fixes that are sorely needed.Shock #3. The government is the biggest enterprise on Earth: Well, maybe this is not such a shock to you. But even though you may be aware of the problem in general terms, it’s still shocking when you consider the numbers:
Needless
to say, all this is quite a change from the days of George Washington,
when the federal government employed just a handful of people in three
small departments — State, Treasury and War.
Can
Mr. Trump turn around, stop, or at least slow this massive,
centuries-long trend of government expansion? I think it’s possible. But
to the degree he can truly shake things up, the side effects are bound
to be painful.
Shock #4. Unintended consequences: Everyone
on Wall Street knows WHAT Trump and Congress have promised to do: They
want to get tougher on trade deals, lift regulations, cut taxes, repeal
Obamacare, restore the nation’s infrastructure and more.
Everyone also knows WHEN these changes will begin: Soon after Inauguration, just four days from today.
What
virtually NO ONE on Wall Street can tell you is what the unintended
consequences will be. They don’t know if trade wars will be triggered.
They don’t know what the impact will be on the federal budget. They
don’t know how America’s adversaries will react or how the U.S.
government will react to those reactions. They certainly don’t know
exactly how investors will respond or when.
We don’t either. Nor
do we need to. Indeed, it’s precisely at times like these that our
investment strategies, perfected over decades of political and market
turmoil, become such valuable assets.
Larry
Edelson, for example, didn’t need a PhD in political science to predict
that Donald Trump would win the election. Instead, he used his deep
knowledge of historical cycles, based on thousands of years of data, to
correctly predict the outcome. Nor did he need a crystal ball to predict
the housing bust of 2007, the Great Debt Crisis of 2008, the Fed’s wild
money printing of 2008-2016 and every major move in gold since the
1980s. Cycles showed him the way.
This also helps explain why
Larry’s subscribers are looking at open gains of 207% in gold bullion,
as much as 167% in SPDR Gold Shares, and from 10% to 38% in four related
investments recommended just last year, just to mention a few.Better yet, right now, after years of testing and validation, Jon has just launched a new investment approach based on a trading technology developed in the 1930s by one of my father’s contemporaries — Jesse Livermore. Until now, no one, not even my father who tracked his trades in real time, was able to decode Livermore’s timing indicator. But Jon has.
Meanwhile,
our editors Boris Schlossberg and Kathy Lien use a simple device that
was created 354 years before boomers like Mr. Trump (and me) were born:
The Gregorian Calendar.
With
a calendar of pre-scheduled events that almost invariably impact
markets, they know what kind of news will be announced when. Then, by
overlaying their astute trend analysis, they can safely bet on how the
market will react. The result has been one winning trade after another
and an overall portfolio gain of 31% since we began publishing their
service in February of last year.
I
could fill volumes with these success stories. And I could also tell
you a story or two about editors who sometimes go through slumps. But
suffice it to say that all of us at Weiss Research are completely ready
for the indisputable outcome of the Trump presidency:
I
repeat: Many people can tell us WHAT the Trump presidency will change
and even when those changes will begin. But we are among the very few
who can tell you with disciplined objectivity and relative confidence,
how to deal with the impact — on stocks and stock sectors, interest
rates, gold and silver, foreign currencies, options, plus much, much
more.
script
Good luck and God bless!
Martin
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