Globalization was never perfect. But the idea that the countries could conduct business in a mutually beneficial way and respect each other’s sovereignty seemed worthy. It seemed worthwhile to accept China’s multiple violations of fair trade in order to pursue the obvious benefits of cooperation.

We are two days away from what could be the single-most important Fed meeting there’s been in years. If Fed Chair Powell sticks to the script and gives the market what it expects, it is likely that stock prices will make an explosive move higher.

End of Globalization

When the economy is expanding, when more people are getting jobs and spending money, when economic data is improving and investors anticipate more revenue and higher profits for corporations, it’s a pretty good bet that the majority of stocks will be moving higher.

The “buy gold” mantra says that as inflation rises, the dollar weakens and so gold (and really all commodity prices) rise. But that’s not what’s happening….

Fed chair Powell essentially guaranteed another 75 bp rate hike at next week’s FOMC meeting. This will take rates to 3.25%. And the belief is that 4% is the silver bullet for inflation.