On Monday, the S&P 500 and Dow Jones Industrial Average made history when they closed at all-time highs for the first time in more than a year. Many investors are now expecting a modest rally to ensue, as Brexit worries fade away. But this is not a time to be greedy and jump into a buying frenzy.
The Russian currency is still far below its historic average; aside from making the country dirt cheap for anyone with foreign currency, we discovered something very interesting today... Some of Russia’s coins are now worth less than their metal values.
Brexit is just a symptom of the disease eating away at the fabric of our global economy. Lehman’s collapse was not the cause of the 2008 worldwide financial crisis. It was just the excuse for something that was going to happen no matter what. Bad debt, bad bankers, bad regulators, bad politicians, media cheer leading, and a willfully ignorant populace were a toxic combination – and it’s worse today.
“The government is allowing speculation by providing cheap financing,” Andy Xie exclaimed, China “is riding a tiger and is terrified of a crash. So it keeps pumping cash into the economy. It is difficult to see how China can avoid a crisis.”