Signs Your Country Is Turning Into A Failed State

Portfolio Armor's Photo
by Portfolio Armor
Thursday, Jan 05, 2023 - 13:33
St. Basil's Cathedral in Moscow
Dmitry Trepolsky/Pexels

A Dire Warning From The Economist

You're probably wondering why the top image here is of St. Basil's Cathedral in Moscow. The reason is that the country The Economist thinks is at risk of turning into a failed state is Russia. 

One reason we were surprised to see that warning about Russia from The Economist is that we remembered their reporting about the resilience of Russia's economy in spite of unprecedented Western sanctions.

And indeed, Russia's ruble was one of the few currencies to outperform the dollar in 2022. 

But another reason we were surprised by those warning signs of Russia becoming a failed state is that some of them seem to apply more accurately to the United States. Consider:

On the moral decay front, we have now added Down's Syndrome drag queens.

If The Economist were honest, they'd explain why America isn't at more risk of turning into a failed state than Russia. Let's close with two quick investing notes.

Two Investing Notes

1) After Wednesday's rally, the cost of hedging SPY was pretty low. If we get another rally today or Friday, consider adding some cheap protection here. 

Optimal put on SPY
Screen capture via Portfolio Armor on 1/4/2023

2) For those following our core strategy, we'll be posting this week's top names tonight on our Substack. 


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