2017: More Revolutions and More Bubbles

Amaris is doing well and kept me up playing peekaboo with her one good eye from 3:30 to 6am, when I got up to make some coffee and she decided it was finally time to get some sleep. Lyncoln is on a Barbie kick, I’m sorry to say, as my efforts to guide her towards Star Wars have lately proven ineffective. We still fight bad guys together and use the light sabers, but she plays it out as Barbie Musketeer, not a Jedi Knight. A couple days ago, I downloaded Talking Tom Cat the app that has a cat which repeats everything it hears and Lyncoln has taken a loving to him. We call him Duke and if Duke hears dad tell Lyncoln to eat her veggies and then repeats that to Lyncoln, she runs to her plate and eats a handful. She shows Duke her new Christmas tree and poured some grape juice on her iPad after we loaded him on there and mom accidentally asked Lyncoln if Duke was thirsty.

I’ve had a bunch of irons in the fire for the last five years and now I’m starting to form swords with some of them.  First off, my company recently built The IAm App Platform, which takes anybody’s twitter, social media and websites and puts them into an individualized beautiful branded app. We’ve brought on a couple of former long-time producers of The Tonight Show with Carson and Leno, a Hollywood movie producer, my former executive producer from Fox Business prime time, and a few other people to help us bring celebrities, media companies, brands and others onto our platform. We’ve had a bunch of early success, as you can now download The IAm Jay Leno app, The IAm Bob Saget App, The IAm Pauly Shore app and a few dozen more that are available from our shop at the Apple App Store and from our shop in the Google Play Store right now. Investors and traders can also download our The IAm Jim Cramer App, The IAm Doug Kass App and The Seeking Alpha Real-Time App which are also available in the app stores. We even have The IAm Amaris Willard App if you’d like to stay up with the latest pictures, videos and updates with my little girl.

I’ve also been doing a bunch of research on our existing names, new names and the markets, the economy and so on. I’m excited because I see a lot of opportunity to invest in ongoing and brand new Revolutionary Themes with several exciting new stock picks and companies that I expect to come public in the next couple years.

And what about the stock market and its set up right now? So many people feel exactly the same way as this http://tradingwithcody.com subscriber: — which is a large part of why the market rally has been so strong: “Cody, As I’ve mentioned recently, I am amazed by the continued upward momentum in the markets since the election. I’ve expected a pull back due to profit taking or other but that hasn’t happened yet. Crazy yet strong bullishness for sure that has defied what I’ve expected.”

I’ve heard similar quotes for the last few years, as the markets have been doubling and tripling from their 2008 lows. When will it end? Probably not yet. Now that Trump has become the president-elect, the markets are recognizing that the most likely outcome from this guy and a Republican-controlled Congress and Senate is that giant banks, corporations and other big money will benefit from every policy, law and subsidies the government will come up with for the next four years.

Not that the Obama and Democrats weren’t already extremely friendly to giant banks, corporations and other big money to the detriment of the poor, small businesses and rural folks around the country. I’ve long explained that it’s the giant banks and global corporations that benefit from 0% interest rates as they find literally no cost to borrow money.

As long as Treasuries remain under 3% or 3.5% and as long as the Fed rates are below 1% you can expect the government and corporations and banks to continue to borrow trillions of dollars for stock buy backs, executive bonuses, dividends and so on.

Couple that with the trillions of dollars that corporations have stashed tax free overseas that will likely be allowed to come back to the US at a tiny fraction of what small business pay in income tax rates and you’ll have even more Bubble-Blowing Bull Market dynamics coming into play. Of course, our children will eventually have to pay for all these trillions of dollars that are being borrowed by corporations at below-market rates and especially by our government at below market rates — all this borrowing and spending is pulling future prosperity into the present, ie blowing bubbles.

So the outlook for the next year or two at least is similar to what I’ve accurately predicted for the last six years — more Bubble Blowing Bull Markets, asset overvaluations, currency devaluation wars and a global movement by every major developed economy to prop up corporate and bank earnings as long as they possibly can.

Which means that I remain in Steady Betty mode for now. Remember that one of the reasons you subscribe to me and one of the keys to my long-term success is that we don’t overtrade or force trades or trade just for the sake of trading. I expect we’ll have some panicky market action at some point in the next few weeks, maybe early next  year but the path of least resistance remains upward for the stock market over all. As we own many of the most Revolutionary, fastest growing, most profitable and smart companies on the planet already, I’m not in a rush to change our stance, even as I’m actively finding some new names for us to add on both the long and short sides. Stay tuned, as I do expect I’ll be more actively trading as the opportunities arise in coming days and weeks and months.

Here are a few good quotes from Jesse Livermore to think about as we head into the year-end with a stock market in rally mode at all-time highs:

• “Money is made by sitting, not trading.”
• “It takes time to make money.”
• “It was never my thinking that made the big money for me, it always was sitting.”
• “Nobody can catch all the fluctuations.”
• “The desire for constant action irrespective of underlying conditions is responsible for many losses in Wall Street even among the professionals, who feel that they must take home some money everyday, as though they were working for regular wages.”
• “Buy right, sit tight.”
• “Don’t give me timing, give me time.”

I’ll repeat: Stay tuned, as I do expect I’ll be more actively trading as the opportunities arise in coming days and weeks and months.