Who would have thought that one of the most glitzy countries in the world would have trouble paying their own debt on time? The fear of systemic contagion is real as investors sell first, and ask questions later.
If Dubai can’t pay their debts, who else can’t? The US of course, but that’s OK! Everybody will fund our debt as you observe the US dollar and US treasuries strengthen. Don’t believe me? The 10-yr US treasury yield has dipped below 3.25% again. What inflation? Cheap money forever!
Investors around the world can mock us, and debase our weak currency all they want! You shouldn’t care, because all you have to do is watch what investors DO and not what they say. Investors are rushing in to our arms today crying “We love you America! Give us shelter!”
So many have disagreed with our “A Weak Dollar Doesn’t Matter Folks!” thesis. Yet so many are going to shop till they drop for pieces of junk they shouldn’t be buying in the first place! It’s Black Friday every day at Ross, TJ Max, and Craigslist, so save your stress and relax! If you go shopping today and check your 401k and stock accounts when you return, you might just have to go back on Monday and return everything!
* CONTEST * Predict where the Dow Jones closes today (11/27) and win a free pat on the back! I predict 10,288. I’ll also highlight the winner in my weekly Katana wrap.
Readers, are there any out there who are relaxing at home in their pajamas being entertained by the media coverage of shopping frenzy? Why don’t people just shop on-line instead, given similar deals? If you make $20/hr from work, but stand in line for 5 hours to save $100 on a laptop, doesn’t the bring you back to even?
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Updated for 2019. Let the bull market continue with stocks at all-time highs!