When the calendar hits September 1st, you realize the year is passing and from an investment point, basically over. Looking back, our calls at Evolution have been fairly accurate. The market discounts ordinary citizens, so what we feel and know, does not count. That is a tough pill to swallow. However, we take comfort in knowing that the "experts" are wrong more than right. Sadly, those experts are the people along with lobbyists who advise the two presidential candidates. This is why our government is disconnected to both our citizens and reality. They do not have to make ends meet like we do. The proof is the continuing budget deficit. Their foolishness will be our future pain.
Anyway, some market investors are also aware of that problem. Market price action reveals the dichotomy. The Dow hit a new all-time record last week, but the SPY could not. In addition, the transports never reached its high from November 2021. It has been in consolidation. The market has never been in a true rally according to DowTheory. As for us, the common folk of the land, we suffer with inflation. It is why we gave the name to our predicament, "stealth recession." We are not alone.
Super Mico Computer (SMCI): The stock hit an all-time high in March of this year at $1250+ and last Friday sat at $437. Ouch! How about a company that provides insurance in China? U-BX Technology (UBXG) rose to a new high last month at $36. Last Friday, the stock fell to $1.40. Ouch! No! Double ouch. Bankruptcy is the next stop.
Answer This...
If things are so good, how come we post company-after-company, week-after-week who are either closing retail stores or laying off workers? Cisco announced 7% layoffs. GM throws another 1,000 to the unemployment line. Outback closes 41 locations and Appelbees shuts down 35 units.
Our Worry
It is not that we do not sympathize with the above loss of jobs, but here at Evolution, we are coffee drinkers. Did you realize that over half of all produced coffee beans come from just two countries? Those two, Brazil and VietNam are having climate problems that will effect production and costs. We hope that someone finds a better way to grow the beans that we love.
Nuclear
We oppose nuclear power because it is deadly to the environment and us. When we read that China is doubling down to expand the power source, we worry. We would rather read that China is researching for new, safer and better energy source. However, the Communist Party rulers lack imagination and innovation. The nation falls in line to the party line. Too bad the free thinkers from Singapore are not invited to offer a different outlook like the plan to have Singapore import solar energy from Australia. It sounds crazy, but I hope it works.
Quiet Time?
For those who prefer a quiet night out dining, good news. Serve Robotics Serve is a chip-maker. They have developed a better robotic product that does all kinds of restaurant duties. However, we at Evolution like ambiance and love to meet new people.
We end with on our favorite investment, Gold. Its next move might be linked to the next BRICS meeting in October. They could bring out a plan to have their currency backed with the precious metal? Maybe in collecting votes behind closed doors with a quid pro quo? The BRICS have loaned South Africa money to develop a water project. Peace. NFL starts. Yay! Go Niners!
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