I have been watching the parade march by and after months of contemplation I have the following comments concerning the next 2 to 3 years.
1.US Presidential election:
The election itself was not as important as the fact that a large percentage of the population has come to realize that we are on a course that cannot continue. Middle American decided that things must change. Dissatisfaction with the status quo is really what the 2016 election was all about. It was not republicans vs. democrats so much as it was globalist against nationalist.
2. The EU (European Union)
It appears that the euro was doomed from the start. Monetary policy was centralized but fiscal policy was not. Merkel’s immigration policy is just the last straw for many Europeans. Rules and regulations pouring out from Brussels are strangling the economies of all the EU countries. There are over 1,200 regulations on a “spoon”. There are over 1,000 regulations on “cabbages”. These regulations are coming from the central government from unelected bureaucrats that answer to no one. Many of the unelected ministers make over 300,000 euros / year along with their expenses. This new mandarin class of overseers can make regulations over the objections of the elected governments in the individual countries. The Italian banks have 18% of their loans in the non-performing category (US banks are about 2%). Italy cannot continue much longer without some sort of change. President Holland in France is on the way out and change is in the air for the coming election there. The EU will collapse as more countries pull out and quit paying for the central government. Wealth will flee Europe in the coming chaos and much of that wealth will find its way into the US markets. It will purchase blue chip stocks, high-end real estate, bonds and precious metals. This will cause the USD, precious metals, real estate and the stock market in the US to all go up together. Our balance of trade will become even more lopsided as our exports become more expensive.
3. Retirement and Life Insurance companies: