Markets and Politics

It’s got to be about politics this week, as the markets have been quite boring! But, before that…

Commodities maintain their strength with increasing numbers of speculators showing interest in tangible products. I like markets that have solid supply and demand fundamentals behind them, and while few people today study supply and demand, owning consumable products must be a long-term winner.

Having bought in before commodities became fashionable, I am using the current strength caused by speculative buyers to lighten my exposure, which allows me more time to spend in my local beach bar. The past four or five months have been a great time for commodities, and I am still positive about higher prices going forward. But as somebody once said, “you can’t go broke taking a profit”.


I know that quote may not be completely correct, but as a speculator rather than an investor, I like to bank a bit of cash as we near the summer, and spend some time with the nearest and dearest, without my smart-phone pinging me every few minutes.

Moreover, since last week, the markets I discussed: Copper, Aluminium, Corn, and Wheat, have all eased back.


As I did last year, when I was forced to be away from the markets for a few months, I have been looking for a speculative trading program that can manage my money for me while I am getting a tan, between the cold drinks. This year, I am pleased to see that trademakers have added more trading programs to their stable, and my choice has increased.


For the younger crypto fanatics, BCIF (Best Crypto Index Fund), which concentrates just on the Blue Chip coins, has been performing very well. Even if you are an older guy like me who wants increased exposure to the crypto markets but wants to dodge some of the crazy volatility associated with crypto, this is definitely a program worthy of investigation.


I have a bit of cash in BCIF, so I am looking for something that maintains the diversification of my portfolio. I am opting for trademakers’ new Winoma FX Fund.


Winoma FX has been trading for over five years and has registered some excellent returns for its investors.


Taking advantage of trademakers' “Fractionalisation,” you can put as little as $5,000 or $10,000 into these funds and enjoy the same returns as larger traders and investors. So, I would encourage people to investigate Winoma FX and think about giving them a go.


So, with that mentioned, let me touch on the wonderful world of political bullshit.


This has been a major year for elections around the globe, and we still have the major ones ahead of us: the EU, the UK, and the USA.


As it stands, fortunes will vary in these elections. The UK will jump to the left, and when this happens, the outlook for the UK will be dire.


I have real concerns for the economic outlook of my homeland, not because of BREXIT, which Brits voted for eight years ago but was never delivered. My concern is that the country is in an economic mess, and if a Labour government is elected, we will have a bunch of inexperienced socialists running the nation’s economy.

Don’t misunderstand me, the Tory Party has been a disaster since Boris took the helm, if not before, and Sunak has to go. But the Labour front bench has no one of any experience, and the current Shadow Chancellor of the Exchequer, Rachel Reeves, is completely under-qualified for the challenges ahead.


Unlike the UK, there is a good chance that in the upcoming elections, the EU will move to the right, as across Europe, patriotic parties are gaining a lot of support. A bit more nationalism in Brussels is bound to upset the apple cart of those living in ivory towers.


How this affects the Euro is difficult to assess, but what will be interesting to watch is how much more money the EU sends to support the war in Ukraine.
A large number of Europeans will be voting for patriotic parties because they want more money spent on European citizens and less money spent on Ukraine and illegal immigrants. I don’t know if Brussels will listen to these concerns, but there will definitely be a lot more noise criticizing how the EU abuses European taxpayer money.

And finally, the USA and Donald Trump.

Love Trump or hate him, the weaponization of the legal system by the Biden Administration is backfiring.


I will leave the touchy-feely stuff to others, but there can be no question that in economic terms Trump was one of the best Presidents America had, and there is also no question Joe Biden is one of the worst. Many Americans have had enough!


With luck, Trump will be voted back into the White House at the end of the year. That said, whether Trump can, in four years, reverse the damage Biden has done is far from guaranteed. The biggest question is: can Trump delay the demise of the dollar, or will the BRIC nations continue to relegate the dollar from its position of global reserve currency?


The bottom line is that no matter how many charts I look at, hedging oneself against the future is not getting any easier… thank God for the gold I got buried in my garden a few years ago!

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