Identifying Opportunities In Economic & Regulatory Trends
Economic Trends
Trend #1
This trend has continued for some time now, with the Fed raising rates, the US Treasury changing its stance on the economy, and foreigners gaining more leverage in US bond and stock markets. This trend, which has gone on for almost a decade, is a gradual downward declining US market, which will eventually lead to a recession. This will only happen after the optimism fades and the bubble bursts, which still may not happen for some time. But it will happen. After reviewing the markets, I noticed that there is ample opportunity in researching how/when to position yourself in lieu of such a recession. First of all, one should be wary of getting into trading commodities until the peak of this seemingly endless mountain reveals itself. At that point, one could start a short position on all commodities, after which selling off all profits once the dust settles. This is extremely risky because no one knows when the bubble will pop. However, there is much money to be made from such trades. No risk, no reward, right?
I found this opportunity from my personal analysis of the stock and bond markets, which led me to identifying a possible course of action. As I said before, the short-term direction of the markets will be a tell-tale sign whether such an opportunity exists in the near future. The most likely people to jump on this would be professional traders, stock gurus, or newbies like myself looking to get into the game. This opportunity is relatively difficult to exploit, as outlined above. One should proceed with extreme caution, as the US economy is very fickle.
The reason I was able to see this opportunity was because of my upbringing around shrewd-minded individuals like my father, uncle, and grandfather. They all foresaw a time when we would experience a severe economic depression in our lifetimes. Though others may not see an opportunity and continue in their optimism about the US markets, I am a pessimist who sees an opportunity in the next couple years.
Trend #2
This opportunity centers around the first trend. To a large degree, I see a chance to pounce on an investment that may reveal itself to be even more lucrative than the first trend. With the US dollar fluctuating, foreigners gaining footholds in our markets,and countries like North Korea affecting the global economy, there is light at the end of the tunnel if taken seriously into consideration. Because our currency has not been backed by precious metals such as gold since Nixon removed us from the Gold Standard, the US dollar has depreciated in value. In reality, paper currency is only valuable because the Fed tells us it is valuable. With that in mind, many precious metals pundits are urging more and more people to invest in something physical and worth something of value. With that in mind, gold, silver, and platinum are your best bets for expecting a possible explosion in value if Trend #1 eventually happens. Thats not to say that IT WILL HAPPEN, but there is a lot of evidence to support this claim.
For the most part, people do not think it necessary to stock up on precious metals. Gold is too expensive for people like ourselves to stockpile. But silver, at a spot price of around $17-18, is a great way to get involved with this trend. Purchasing bullion can be tricky, but there are numerous guides to getting your hands on some silver for a great price. This opportunity is extremely easy to exploit and also offers a possible upside on your investment! In closing, buy silver for long-term investments. Research suggests that global mining supply of silver will be depleted in the next 40 years. The worst thing that happens is you make a few dollars!
Regulatory
Trend #1
Many changes have occurred in the first several months of Trump's presidency, but none so many as changes to the US's environmental rules. Among many changes initiated by executive orders, one very controversial was the Dakota Access Pipeline, which many people on the left strongly opposed. Though an inflammatory topic, I will describe the pros and cons of such a deal and why Trump supported the pipeline that brings billions of gallons of liquid gold from Canada.
First of all, the US has been a long-time dependent on other countries natural resources. After all, being a first-world nation, we can spare our own resources and pay other countries to do the dirty work. Namely, Saudi Arabia and other Gulf nations. But in so doing, we are being controlled and manipulated by nations that long for the US to fall to eventual ruin. By granting support to the DAP, Trump is effectively promoting that we instead depend on a reliable and less manipulative nation that we already do successful business with, Canada. As a result, there are many jobs created as a result of the DAP, with many new avenues with which to start a business revolving around refining the billions of gallons of oil that pass through the pipeline every year. I believe there is a need for those refining businesses to start a venture to make America less dependent on other nations.
This opportunity is not hard to exploit, as it results in decreased tariffs, costs, and shipping times. As a result, the end game is more profit. Though some are staunch enemies of this decision to open the pipeline, in the end, the result will benefit us more than cost us.
Trend #2
Pulling out of the Paris Climate Agreement will aid the US's mission to become more self-sufficient through our own mining of natural resources. Though it will inevitably place the environment on thin ice, our first order of business is caring for the millions of Americans who have been put out of jobs as a result of out-sourcing and importing natural resources from numerous other countries. We owe it to those blue-collar Americans to decline to partake in such an agreement.
With that being said, it is now easier to operate a business after several executive orders have been signed. For instance, mining companies and other natural resources corporations are more free to go about their business and generate more revenue without the shackles that the EPA places on the industry.
There are more windows of opportunity open now that American resources are easy to exploit. With that being said, there are now more jobs open in the industry and better pay and benefits available to those workers. In the same way, entrepreneurial ventures, like in the oil business, are more able to deliver cost-efficient, low-cost gas to millions of Americans. This in turn makes our wallets fatter and more likely to spend that money on other areas of life.
Many people would oppose this viewpoint, but it helps to take a step back and understand why the Trump administration took such a drastic approach to environmental regulations and councils like the PCA. Globalists desperately want every nation hindered and crippled by rules so as to easily quash ambitions and further herd the 7 billion people on this Earth together. In so doing, they are attempting to make the US a weaker nation that can be more easily exploited.
Great article. It's always good to read ideas from the vantage point of sitting atop the world and looking at the individual pieces. Being American, obviously I am specifically interested in how things relate to American interests (I know, it's totally unpopular to lookout for one's self these days). One thing that nobody points out but surly should be pointed out (especially the President's people, ya know to kick up the image) is what the deregulation means for everyday people (American People). Complaints abound regarding jobs and specifically how hard it is to start a business. Well, regulation is a daunting barrier to entry! For instance elites own the banking industry. Why? because to start a bank you not only need the capital and assets but you need twice as much to keep the QC and legal team on retainer! Not to mention how long it takes to actually get all the business licenses for any given business venture. It has gotten to where you have to hire an attorney, for the right to start a business and hire actual employee to pay!