Risks you cannot ignore
178: Market Landmines, Taiwan, Social Unrest
Hope everyone had a solid beginning to the week, there’s quite a bit for us to touch on this week so make sure you have a solid 10-15 uninterrupted minutes to read through today’s post as there are going to be a range of domestic and foreign updates that have the capacity to impact you directly.
To us there are several developments we are watching that we feel pose systematic risks to financial markets and in the wake of last week’s highly engaged post Financial Opportunities Most Will Miss thought it made sense to not just highlight the opportunities we are watching and taking advantage of, but also how we think about them in relation to the downside risk from various events and outcomes.
We will elaborate a little bit on why what we think is going on behind the scenes but really this is meant to be a overview of the major risks developing in a number of areas both here in the United States and abroad. These risks threaten financial health, our state of peace and order in the US, and many people globally.
We will be perfectly clear — the majority of people aren’t up to speed on these topics and even fewer have likely put any contingent plan or hedge into place to weather the storm if something big blows up — financially, physically, or politically. And something big will blow up at this point. It’s simply a matter of time.
What we’ve found within legacy media sources and most mainstream media companies is that they tip toe around the reality of what’s beginning to play out — with a potential war, faltering banking system, concerning overreach from our government, alarming crime spree in our country, and other worsening risk profiles.
This isn’t super shocking as most of these actors are simply repeating talking points from management or investors they work for, or avoiding controversial topics to protect heir jobs or reputations in the politically correct and woke mainstream corporate/social/communal world.
We think everyone deserves to have an honest and up front representation of what is likely to come and at the moment we strongly feel nobody is really covering these topics in a way that allows everyday investors and people to adjust accordingly.
Today we are going to cover risks within the following areas:
Traditional Markets, Currencies, and Financial Systems
Crypto/Exchange Risk
Global Macro Risks
Domestic Risks here in the United States
Having a well rounded and fact based understanding of these various risks is going to ensure that you can navigate financial markets safely and make the right decisions in your life for you and your family or loved ones.
It’s a wild time to be alive but everyone should recognize that eventually the music that defined the bull market and good times of the last several years is going to stop. It’s stop is going to be made more impactful by growing geopolitical tension with enemies, the prospect of war, and the possibility of severe unrest in the United states, fueled by political division and a lack of trust in government systems.
With CPI coming out this morning at CPI 0.1% MoM, Exp. 0.2% CPI 5.0% YoY, Exp. 5.1% CPI Core 0.4% MoM, Exp. 0.4% CPI Core 5.6% YoY, Exp. 5.6% we expect a nice pump from select assets in the short term but remain cautious on centralized exchanges, systems, and currencies.
Anything can happen at this point which is why it is highly important to assess the varying risks presenting themselves at a time when our nation is vulnerable and the world is still recovering from the Covid pandemic and reckless central bank policy that has put many countries in bad positions economically.
Let’s dive into the risk indicators you should absolutely be aware of in the coming weeks and months.
Don’t get blindsided by something you could’ve been aware of today.