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Tuesday, May 3, 2016

Suppy the drug addict

Hi readers

There's been a lot of action of the last week in the markets, politics and in trading .

In the markets after APPL report question are being asked about there ability to innovate.
Ideas are what makes people special and sometimes you need to look outside the box to find a simple idea.
In Korea at the present time with clients and the pipeline of innovation here I believe is streets ahead of Apple.
Time will tell I guess but as people we are in a wonderful period coming up for technological innovation.

In the S&P we are seeing some question being asked regarding valuation level and hence the market finding it difficult to push through 2100 level.
Also when you start seeing crap stocks getting bid up that's telling you that market looks full priced.

In the currency market we are witnessing the world devalue.
Cutting interest rates and devaluing the currency can only work for a short period of time (18 month).
What it does is bring forward investment decisions to take advantage of the period.
If it's continued for a longer period the effects are less powerful and people just hold off expecting further stimulus.

Central Banks have been taking it in turns as to who's go it is to devalue.
Now it seems as there all at it at the same time, the FED, BOJ, EU and now with Australia cutting rates again.
The stupidity of these institution is costing the 95% of the worlds people there opportunity to create wealth.
Until you allow growth to work through the economy you will never succeed.
Simple economics and that is being ignored.
Reminds me of a drug addict, start them up for free and then just supply the stimulus at a cost.
Note this, the world population isn't growing in the western world, it's growing in the poor countries who make do with what they have.
Yet the institution don't seem to understand macro economics.
If the western world population grows then so do economies.. Very simple

In trading I got cooked on the gold trade ..
Got stopped out at 1273-75 .
Went short again on the A$ at 7703 yesterday before the RBA rate decision. Still holding .

The astrology isn't wrong people on the gold or the A$, it's still negative.
Delayed by action which people of power have taken.
Still both are showing very negative moves, astrology can't be changed by actions, like charts.

In America trump looks like he might get the nomination but he won't win the election.
Cruz is very politically lost in my view, he doesn't know how to attack Trump.
While Trump is street fighting Cruz and winning very easy.

In Australia we see a lame duck government playing games while not making sound decision, play in the hands of the Labor party..
The election coming up is for labor to loose.
The Liberals have no idea what they are doing, with Malcom just doing what the papers want him to do.
I haven't done the astrology on the election yet but, the liberals need to loose, and learn not to change leaders, when people voted for Tony.
Popularity is a passing illusion .

Else where how good is that, in Victoria the labor government is spend 5-10 billion on infustructure .
Wasn't  this the same state government that just paid 1.2 billion not to build infustructure
Are people that stupid or am I missing something here!

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