At this moment, the allure of reckless decisions seems more captivating than ever. It appears that everyone is partaking in this trend—perhaps you are too.
Stock valuations and corporate earnings now seem irrelevant. Why not invest in an S&P 500 index fund and let it run its course? Or even bolder, why not consider purchasing shares of Nvidia?
This semiconductor firm has surged over 170 percent in just the past nine months. Could it possibly triple from here?
There’s nothing quite like a monumental stock market bubble to inspire overly optimistic ideas that, under normal circumstances, would be dismissed as far-fetched. One prevalent belief is that low interest rates justify inflated valuations. Another suggests that the Federal Reserve can indefinitely inflate stock prices through its seemingly boundless credit supply.
Yet, many of these notions are approaching their sell-by date. As they transition from promising to perilous, investors who rely on the “greater fool” theory will face a harsh reality when they realize the consequences of overpaying for future cash flows. In summary, future returns may disappoint. Continue reading
This year, the fear spurred by a deadly pandemic prompted authorities to implement strict lockdown measures. Like a burning bush guiding their actions, the “science” was interpreted as a divine directive to enforce regressive policies, and the anxious public quickly complied.
Humanity has contended with viruses long before the invention of the wheel. Archaeological evidence suggests that a rapid epidemic occurred approximately 5,000 years ago, decimating a prehistoric settlement in modern-day northeastern China. Remains were discovered buried within a building known as Hamin Mangha, which was later set aflame.
Similarly, another mass burial site called Miaozigou was found in the vicinity, indicating a widespread outbreak of a virulent infectious disease that affected the entire area.
The rapid spread of microscopic pathogens can significantly reshape history. For instance, soldiers who returned to the Roman Empire after engaging in conflict with Parthia in 165 AD brought back more than just war spoils. Continue reading
The United States Secretary of the Treasury holds the unfortunate responsibility of signing the Federal Reserve’s currency notes, displaying to the world their endorsement of what many consider unconstitutional money.
Recall that Article I, Section 8 of the U.S. Constitution grants Congress the authority to mint currency and regulate its value. Furthermore, Article I, Section 10 stipulates that money must be fashioned from gold and silver, disallowing any form of bills of credit.
By this definition, paper currency violates two constitutional principles: it is issued by the Federal Reserve and constitutes bills of credit with no backing to gold or silver.
This crucial flaw hardly raises concern among the average American, but it should. Illegal money, like paper dollars, carries inherent risks. It is susceptible to excessive issuance for political purposes, leading to an expansion of government that compromises the integrity of its value. Continue reading
Remarkably, on Tuesday, the Dow Jones Industrial Average (DJIA) broke the 30,000-point milestone for the first time, a moment that President Trump marked by calling the figure “sacred.”
Many Americans expressed gratitude for this achievement during their Thanksgiving celebrations, particularly those who are affluent holders of stocks and other financial assets. Forty years of inflationary monetary policies have elevated their wealth to near-holy status.
In stark contrast, a significant portion of the population missed out on these “sacred” benefits. Perhaps they will receive a few leftover blessings come Christmas. These are pressing inquiries.
Will Washington make this a joyous season for financially struggling Americans? Will the Treasury issue a second round of $1,200 stimulus payments for the holidays? Will Congress choose to embody Ebenezer Scrooge, or will they channel Mr. Fezziwig?
These are vital questions as we approach the end of 2020. Continue reading
