By Bryan Rich 

May 15, 2017, 4:00pm EST               Invest Alongside Billionaires For $297/Qtr

BR caricatureLast week we discussed the building support for a next leg higher in commodities prices.  China is clearly a very important determinant in where commodities go. And with the news last week about cooperation between the Trump team and China, on trade, we may have the catalyst to get commodities moving higher again.​It just so happens that oil (the most traded commodity in the world) is rebounding too, on the catalyst of prospects of an OPEC extension to the production cuts they announced last November.​In fact, overnight, Saudi Arabia and Russia said they would do “whatever it takes” to cut supply (i.e. whatever it takes to get oil prices higher).  Oil was up big today on that news.When you hear these words spoken from policy-makers (those that can dictate outcomes), it should get everyone’s attention.  Those are the exact words uttered by ECB head Mario Draghi, that ended the bond market assault in Spain and Italy that were threatening the existence of the euro and euro zone.  The Spanish 10-year yield collapsed from 7.8% (unsustainable borrowing rate for the Spanish government, and threatening imminent default) to 1% over the next three years — and the ECB, while threatening to buy an unlimited amount of bonds to push those yields lower, didn’t have to buy a single bond.  It was the mere threat of ‘whatever it takes’ that did the trick.

may15 spain

​As for oil: From the depths of the oil price crash last year, remember, we discussed the prospects for a huge bounce.  Oil prices at $26 were threatening to undo the trillions of dollars of work central banks and governments had done to stabilize the global economy.  Central banks couldn’t let it happen.  After a series of coordinated responses (from the BOJ, China, ECB and the Fed), oil bottomed and quickly doubled.

Also at that time, two of the best oil traders in the world were calling the bottom and calling for $70-$80 oil by this year (Pierre Andurand and Andy Hall).  Another commodities king that called the bottom: Leigh Goehring.

Goehring, one of the best commodities investors on the planet, has also laid out the case for $100 oil by next year. He says he’s “wildly bullish” oil in his recent quarterly investor letter at his new fund, Goehring & Rozencwajg.

​Goehring argues that the IEA inventory numbers are flawed. He thinks oil the market is already over-supplied and is in a draw, as of May of last year.   With that, he thinks the OPEC cuts will ultimately exacerbate the deficit and send prices aggressively higher. He says “we remain ‘wildly’ bullish and believe that there is a very high probability of oil prices reaching triple digits in the first half of 2018.”
may15 opec

Follow This Billionaire To A 172% WinnerIn our Billionaire’s Portfolio, we have a stock in our portfolio that is controlled by one of the top billion dollar activist hedge funds on the planet. The hedge fund manager has a board seat and has publicly stated that this stock is worth 172% higher than where it trades today. And this is an S&P 500 stock!Even better, the company has been constantly rumored to be a takeover candidate. We think an acquisition could happen soon as the billionaire investor who runs this activist hedge fund has purchased almost $157 million worth of this stock over the past year at levels just above where the stock is trading now.So we have a billionaire hedge fund manager, who is on the board of a company that has been rumored to be a takeover candidate, who has adding aggressively over the past year, on a dip.

Join us today and get our full recommendation on this stock, and get your portfolio in line with our BILLIONAIRE’S PORTFOLIO.

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By Bryan Rich 

May 12, 2017, 4:00pm EST               Invest Alongside Billionaires For $297/Qtr

BR caricatureAs we ended this past week, stocks remain resilient, hovering near highs. The Nasdaq had a visit to the 200-day moving average intraweek for a slide of a whopping (less than) 1%, and quickly it bounced back.It’s a Washington/Trump policies-driven market now, and while the media carries on with narratives about Russia and the FBI, the market cares about getting health care done (which there was progress made last week), getting tax reform underway, and getting the discussion moving on an infrastructure spend.We looked at oil and commodities yesterday. Chinese stocks look a lot like the chart on broader commodities. With that, the news overnight about some cooperation between the Trump team and China on trade has Chinese stocks looking interesting as we head into the weekend.

Let’s take at the chart…

Displaying

While the agreements out of China were said not to touch on steel and industrial metals, the first steps of cooperation could put a bottom in the slide in metals like copper and iron ore. These are two commodities that should be direct beneficiaries in a world with better growth prospects, especially with prospects of a $1 trillion infrastructure spend in the U.S. With that, they had a nice run up following the election but have backed off in the past couple of months, as the infrastructure spend appeared not to be coming anytime soon.

 

Here’s copper and the S&P 500…

Displaying

Trump policies are bullish for both. Same said for iron ore…Displaying

This is right in the wheelhouse of Wilbur Ross, Trump’s Secretary of Commerce. He’s made it clear that he will fight China’s dumping of steel on the U.S. markets, which has driven steel prices down and threatened the livelihood of U.S. steel producers. Keep an eye on these metals next week, and the stocks of producers.

Follow This Billionaire To A 172% Winner

In our Billionaire’s Portfolio, we have a stock in our portfolio that is controlled by one of the top billion dollar activist hedge funds on the planet. The hedge fund manager has a board seat and has publicly stated that this stock is worth 172% higher than where it trades today. And this is an S&P 500 stock!

Even better, the company has been constantly rumored to be a takeover candidate. We think an acquisition could happen soon as the billionaire investor who runs this activist hedge fund has purchased almost $157 million worth of this stock over the past year at levels just above where the stock is trading now.

So we have a billionaire hedge fund manager, who is on the board of a company that has been rumored to be a takeover candidate, who has adding aggressively over the past year, on a dip.

Join us today and get our full recommendation on this stock, and get your portfolio in line with our BILLIONAIRE’S PORTFOLIO.

 

By Bryan Rich 

May 11, 2017, 4:00pm EST                                                                                       Invest Alongside Billionaires For $297/Qtr

Oil has been on the move the past few days.  Was this recent dip a gift to buy?The oil inventory report yesterday showed a big drawdown on oil inventories.  The market expectation was for about a drawdown of 1.5 million barrels. It came in at 5 million.

may11 oil 3

That has oil on a big bounce for the week. It’s trading about 8% higher than it was at the lows of last Friday.  But we still sit below the 200 day moving average and below the key $50 level (the comfort zone for those producers, namely the shale industry, to fire back up idle capacity).

​The weakness in oil has a lot to do with weakness across broader commodities.  And broader commodities typically correlates well with what Chinese stocks are doing.

may11 commodities 2

You can see in the chart above, how closely the two track.  This bottom in commodities has/had everything to do with the outlook for a big infrastructure spend out of the Trump administration.  It’s yet to bubble up toward the top of the action list.  With that, the momentum has either stalled on this trade, or it’s a pause before another leg higher in this early stage multi-year rebound. My bet is on the latter.
 Follow This Billionaire To A 172% Winner

In our Billionaire’s Portfolio, we have a stock in our portfolio that is controlled by one of the top billion dollar activist hedge funds on the planet. The hedge fund manager has a board seat and has publicly stated that this stock is worth 172% higher than where it trades today. And this is an S&P 500 stock!

Even better, the company has been constantly rumored to be a takeover candidate. We think an acquisition could happen soon as the billionaire investor who runs this activist hedge fund has purchased almost $157 million worth of this stock over the past year at levels just above where the stock is trading now.

So we have a billionaire hedge fund manager, who is on the board of a company that has been rumored to be a takeover candidate, who has adding aggressively over the past year, on a dip.

Join us today and get our full recommendation on this stock, and get your portfolio in line with our BILLIONAIRE’S PORTFOLIO.

By Bryan Rich 

May 10, 2017, 4:00pm EST                                                                                           Invest Alongside Billionaires For $297/Qtr

 

BR caricatureAs we’ve discussed, we’re in a world where the baton has been passed from a central bank driven economy (post-financial crisis) to a fiscal and public policy driven economy (Trumponomics).One of the pillars of the Trump plan is deregulation.  On that note, there’s been plenty of carnage across industries since the financial crisis, but no area has been crushed more and been crushed more by regulation more than Wall Street. And under the Trump administration, those regulations look like they are going to be slashed.Dodd-Frank and the fiduciary rule are bubbling up toward the top of the administrations confrontation list. With a former Goldman president heading the economic team for the President and a former Goldman guy running Treasury, I suspect they will give proprietary risk taking back to banks. The bank’s trading businesses will be back on-line and it will be restoring a huge profit engine.

Those that oppose it warn that it will lead to another financial crisis.  On that note, I want to revisit my take from earlier this year on the cause of the crisis that almost destroyed the global economy.

With all of the complexities of the housing bubble and the subsequent global financial crisis, it can seem like a web of deceit.  But it all boils down to one simple actor.  It wasn’t Wall Street.  It wasn’t hedge funds.  It wasn’t mortgage brokers.  These entities were operating, in large part, from the natural force of economics: incentives. 

It wasn’t even the government’s initiative to promote home ownership that led to the proliferation of mortgages being given to those that couldn’t afford them.

So who was the culprit?  

It was the ratings agencies

Housing prices were driven sky high by the availability of mortgages. Mortgages were made easily available because the demand to invest in mortgages, to fund those mortgages, was sky high.  

But what drove that demand to such high levels?  

When the mortgages were combined together in a package (securitized as a mix of good mortgages, and a lot of bad/higher yielding mortgages), they were bought, hand over fist, by the massive multi-trillion dollar pension industry, banks and insurance companies.  Yes, the guys that are managing your pension funds, deposit accounts and insurance policies were gobbling up these mortgage securities as fast as they could, but ONLY because the ratings agencies were stamping them all with a top AAA rating.  Who would encourage such a thing?  Congress.  In 1984 they passed a law making it okay for banks, pension funds and insurance companies to buy/treat high rated secondary mortgages like they would U.S. Treasuries.

So as investment managers, in the business of building the best performing risk-adjusted portfolio possible, and in direct competition with their peers, they couldn’t afford NOT to buy these securities.  They came with the safest ratings, and with juicy returns. If you don’t buy these, you’re fired. 

To put it all very simply, if these securities were not AAA rated, the pension funds would not have touched them (certainly not to the extent). With that, if the there’s no appetite to fund the mortgages (no money chasing it), then the ultra-easy lending practices never happen, and housing prices never skyrocket on unwarranted and unsustainable demand. The housing bubble doesn’t build, doesn’t bust, and the financial crisis doesn’t happen. 

That begs the question: Why did the ratings agencies give a top rating to a security that should have received a lower rating, if not much lower?  

First, it’s important to understand that the ratings agencies get paid on the products they rate BY the institutions that create them.  That’s right. That’s their revenue model.  And only a group of these agencies are endorsed by the government, so that, in many cases, regulatory compliance on a financial product requires a rating from one of these endorsed agencies.”

Keep this in mind as the fear mongering over the talk of repeal of rework of Dodd Frank heats up.

Follow This Billionaire To A 172% Winner

In our Billionaire’s Portfolio, we have a stock in our portfolio that is controlled by one of the top billion dollar activist hedge funds on the planet. The hedge fund manager has a board seat and has publicly stated that this stock is worth 172% higher than where it trades today. And this is an S&P 500 stock!

Even better, the company has been constantly rumored to be a takeover candidate. We think an acquisition could happen soon as the billionaire investor who runs this activist hedge fund has purchased almost $157 million worth of this stock over the past year at levels just above where the stock is trading now.

So we have a billionaire hedge fund manager, who is on the board of a company that has been rumored to be a takeover candidate, who has adding aggressively over the past year, on a dip.

Join us today and get our full recommendation on this stock, and get your portfolio in line with our BILLIONAIRE’S PORTFOLIO.

 

By Bryan Rich 

May 9, 2017, 4:00pm EST                                                                                    Invest Alongside Billionaires For $297/Qtr

 

 

BR caricatureOver the past few days, some of the most influential investors in the world have publicly shared views on some of their best ideas.First, over the weekend, it was Buffett at his annual shareholders meeting.  The take away, as I said yesterday, “stocks are dirt cheap” if you think rates will stay low for longer (i.e. below long term averages). His assumption in that statement is that the Fed’s benchmark rate goes to 3ish% and done – well below the long run average neutral rate of 5%.

In addition, he was quite vocal on Apple, a stake he picked up as others were selling in fear in the first half of last year (i.e. being greedy when others are fearful). And he doubled his stake earlier this year, now holding north of $20 billion worth of the stock.  The analyst community thinks Apple is a juggling act, with balls that will drop if they don’t come up with another revolutionary product every quarter. Buffett thinks Apple is cheap even if they don’t have another single new invention in the future.  Why?  Because they’ve developed a services business around their hardware that has quickly become one of the biggest and fastest growing businesses in the world.

Remember, back on February 1, I made the case for why Apple could double.  You can see that here.  It’s gone from a $560 billion company to an $800 billion company since we added it in our Billionaire’s Portfolio early last year. Even at $154 a share (today’s levels) if we strip out the quarter of a trillion dollars in cash, we get the existing business for 12 times earnings.

Now, let’s talk about one of the big ideas presented yesterday at the annual Sohn Conference in New York, where many of top billionaire investors and hedge fund managers give their outlook on the stock market, the economy and talk about their favorite long and/or short picks.

Billionaire investor Jeff Gundlach, who oversees the world’s largest bond fund likes selling the S&P 500 against emerging market stocks.  He thinks value is distorted relative to global GDP.  But it’s more a view on undervaluation of EM, rather than overvaluation of U.S. stocks. He took to Twitter to defend that view…

gundlach

Assuming a stable to improving world economy, emerging market stocks have lagged and offer a great opportunity to catch up with the strength in the U.S. stock market.  It also requires that emerging market currencies are a good bet against the dollar, if policy makers around the world are able to follow the lead of the Fed, where rising interest rate cycles follow.  This is a very similar view to the one we discussed yesterday, where Spanish stocks (supported by a stronger euro) present a big catch up trade opportunity (to the tune of about 40% to revisit the 2007 highs), with the destabilization risk of the French elections in the rear-view mirror.

Follow This Billionaire To A 172% Winner

In our Billionaire’s Portfolio, we have a stock in our portfolio that is controlled by one of the top billion dollar activist hedge funds on the planet. The hedge fund manager has a board seat and has publicly stated that this stock is worth 172% higher than where it trades today. And this is an S&P 500 stock!

Even better, the company has been constantly rumored to be a takeover candidate. We think an acquisition could happen soon as the billionaire investor who runs this activist hedge fund has purchased almost $157 million worth of this stock over the past year at levels just above where the stock is trading now.

So we have a billionaire hedge fund manager, who is on the board of a company that has been rumored to be a takeover candidate, who has adding aggressively over the past year, on a dip.

Join us today and get our full recommendation on this stock, and get your portfolio in line with our BILLIONAIRE’S PORTFOLIO.

By Bryan Rich 

May 8, 2017, 4:00pm EST                                                                                          Invest Alongside Billionaires For $297/Qtr

 

For the skeptics on the bull market in stocks and the broader economy, the reasons to worry continue to get scratched off of the list.

Brexit. Russia. Trump’s protectionist threats. Trump’s inability to get policies legislated.  The French election.

The bears, those looking for a recession around the corner and big slide in stocks, are losing ammunition for the story.

With the threat of instability from the French election now passed, these are two of the more intriguing catch-up trades.

may8 eur ibex

In the chart above, the green line is Spanish stocks (the IBEX).  U.S., German and UK stocks have not only recovered the 2007 pre-crisis highs but blown past them — sitting on or near (in the case of UK stocks) record highs.  Not only does the French vote punctuate the break of this nine year downtrend, but it has about 45% left in it to revisit the 2007 highs.  And the euro, in purple, could have a dramatic recovery with the cloud of French elections lifted, which was an imminent threat to the future of the single currency.​Next … Japanese stocks.  While the attention over the past five months has been diverted toward U.S. politics and policies, the Bank of Japan has continued with unlimited QE.  As U.S. rates crawl higher, it pulls Japanese government bond yields with it, moving the Japanese market interest rate above and away from the zero line.  Remember, that’s where the BOJ has pegged the target for it’s 10 year yield – zero.  That means they buy unlimited bonds to push the yield back down.  That means they print more and more yen, which buys more and more Japanese stocks.
may8 nky
The Nikkei has been one of the biggest movers over the past couple of weeks (up almost 10%) since it was evident that the high probability outcome in the French election was a Macron win.​Again, German, U.S., and UK stocks are at or near record highs.  The Nikkei has been trailing behind and looks to make another run now, with 25,000 in sight.If you need more convincing that stocks can go much higher, Warren Buffett reiterated over the weekend that this low interest rate environment and outlook makes stocks “dirt cheap.”   Last year he made the point that when interest rates were 15% [in the early 1980s], there was enormous pull on all assets, not just stocks. Investors have a lot of choices at 15% rates. It’s very different when rates are zero (or still near zero). He said, in a world where investors knew interest rates would be zero “forever,” stocks would sell at 100 or 200 times earnings because there would be nowhere else to earn a return.

Buffett essentially said at zero interest rates into perpetuity, the upside on the stock market (and any alternative asset class with return) is essentially infinite, as people are forced to find return by taking risk. Why you would buy a treasury bond that has no growth, and little-to-no yield and the same or worse balance sheet than high quality dividend stock.

This “forcing of the hand” (pushing investors into return producing assets) is an explicit objective by the interest rate policies of the Fed and the other major central banks of the world. They need us to buy stocks. They need us to spend money. They need economic growth.

If you have an brokerage account, and can read a weekly note from me, you can position yourself with the smartest investors in the world. Join us in The Billionaire’s Portfolio.

By Bryan Rich 

April 3, 2017, 4:00pm EST                                                                 Invest Alongside Billionaires For $297/Qtr

As we discussed last week, we should expect more volatility in markets in the coming months, with the continued discovery surrounding Trump Policies (timing, size) and with UK/EU Brexit negotiations officially opening. That’s a dose of unknowns which should send stocks swinging around quite a bit more than we’ve seen for the past four months.

Remember, on Friday I noted the message the bond market was sending — with market interest rates (U.S. 10 year yields) closing the week, and quarter, at 2.39%.  That’s almost a quarter point lower than the high that followed the March rate hike (the third in the Fed’s “normalization” process).  And it’s about 10 basis point lower than where the 10 year stood going into the December 2015 rate hike.  That’s a negative signal.  And I suspect stocks will get that message.

With that said, the first day of the second quarter opened today with a slide in stocks, a slide further in yields and a rise in the price of gold.

When stocks go down, people get nervous and buy downside protection.  That tends to spike implied volatility.  There’s an index that measures that called the VIX.

Let’s talk about the VIX…

The VIX measures the implied volatility of options on the S&P 500. This is a key component in the price investors pay for downside protection on their portfolios.

So what is implied volatility?  Implied volatility measures both actual volatilityand the options market maker community’s expectations (or perception of certainty) about future volatility.  When market makers feel confident about the stability in markets, implied vol is lower, which makes the price of options cheaper.  When they aren’t confident in stability, implied vol goes up, which makes the price of an option go up.  To compensate those that are taking the other side of your trade, for the lack of predictability, you pay a premium.

You can see in the chart below, vol is very, very low — but has been ticking up.


Still, it takes a significant event – a high dose of uncertainty – to create a spike in implied volatility.


That spike tends to correlate well with a sharp slide in stocks.  Otherwise, we’re looking at a garden-variety correction in stocks — and that’s what this low vol environment is spelling out.

By Bryan Rich 

March 27, 2017, 4:00pm EST                                                               Invest Alongside Billionaires For $297/Qtr

This will be an interesting week.  We had almost three months of optimism priced into global markets following the November 8th elections.  And then the tide turned when Trump gave his speech to the join sessions of Congress.

This is the buy-the-rumor sell-the-fact phenomenon we’ve discussed.  People bought on anticipation of a big policy shift.  And now they’re taking profit (raising cash) waiting to see it all executed — the prove-it-to-me phase.

I think we’re beginning to see the same phenomenon unfold in the Brexit saga.  Brexit came before Trump, but the cycle has been slower and longer.  Much like the Trump trend, the Brexit news started with an initial “sell everything” on the fear of the unknown, but soon thereafter, the “buy on anticipation of something better” prevailed. But it’s looking very vulnerable now to a turn in the tide.

On Friday, we looked at this next chart. This trend higher in UK stocks looks much like the Trump trend in U.S. stocks – a nice 45 degree climb from June of last year.

mar 24 ftse

But as we discussed on Friday, the “prove-it-to-me” phase looks set to arrive this week in the Brexit story.  With that, here’s what the chart looks like today …

mar 27 ftse

This nine-month trend line in UK stocks gave way today – in part because of the softening in expectations about Trump policies, but largely because the UK Prime Minister is expected to officially notify the European Union on Wednesday, of the UK’s exit from the EU.  Again, this would start the clock on the two year wind-down of the UK constituency in the EU. And the official negotiations will begin, on what the UK/EU relationship will look like – namely, on trade.

Expect the negotiations to be ugly in the early stages.  Why?  Because there is a lot to lose if it looks too easy.  The future of the European Union and the common currency (the euro) hang in the balance on these negotiations.  The most important job of EU officials, at this stage, is keeping other EU members from hitting the eject button, following the lead of the UK.  A domino effect of exits would kill the EU and it would be the end of the euro.  And that would have huge, destabilizing global ramifications.

With all of this in mind, it’s very likely that after long period of ultra-low volatility in markets, things will be a little more dicey in the months ahead.  That should keep pressure on yields and should keep the correction in U.S. stocks intact.

In our Billionaire’s Portfolio, we’re positioned in a portfolio of deep value stocks that all have the potential to do multiples of what broader stocks do — all stocks owned and influenced by the world’s smartest and most powerful billionaire investors.  Join us today and we’ll send you our recently recorded portfolio review that steps through every stock in our portfolio, and the opportunities in each.  ​

By Bryan Rich 

March 21, 2017, 4:00pm EST                                                                                 Invest Alongside Billionaires For $297/Qtr

Over the past week, I’ve talked about the potential for disruption in what has been very smooth sailing for financial markets (led by stocks).  While the picture has grown increasingly murkier, markets had been pricing in the exact opposite – which makes things even more vulnerable to a shakeout of the weak hands.

With that, it looked like we are indeed working on a correction in stocks. But it’s not just because stocks are down.  It’s because we have some very important technical developments across key markets.  The Trump trend has been broken.

Let’s take a look at the charts …

mar21_stocks

The above chart is the S&P 500.  We looked at a break in the futures market last week.  Today we get a big break in the cash market.  This trendline represents the nice 45 degree climb in stocks since election night on November 8th. We have a clean break today.

mar 21 yields

Stocks ran up on the prospects that Trumponomics can end the decade long malaise in, not just the U.S. economy, but the global economy too.  With that, the money that has been parked in U.S. Treasuries begins to leave. Moreover, any speculators that were betting the U.S. would follow the world into negative rate territory run for the exit doors.  That sends Treasury bond prices lower and yields higher (as you can see in the chart above).  So today, we also get a break of this “Trump trend” in rates as well (the yellow line). Remember, this is after the Fed’s rate hike last week — rates are moving lower, not higher.

Next up, gold …

mar 21 gold

I talked about gold yesterday — as being the clearest trade (higher) in an increasingly murkier picture for global financial markets.  You can see in the chart above, gold is now knocking on the door of a break in this post-election Trump trend.

Remember, we’ve talked about the buy-the-rumor sell-the-fact phenomenon in markets. The beginning of the Trump trend in stocks started on election night (buying “the rumor” in anticipation of pro-growth policies). The top in stocks came the day following the President’s speech to the joint sessions of Congress (selling “the fact”, entering the “show me” phase).

In our Billionaire’s Portfolio, we’re positioned in a portfolio of deep value stocks that all have the potential to do multiples of what broader stocks do — all stocks owned and influenced by the world’s smartest and most powerful billionaire investors.  Join us today and we’ll send you our recent addition to the portfolio – a stock that one of the best activist investors in the world thinks will double.   ​

By Bryan Rich 

March 20, 2017, 4:30pm EST                                                                          Invest Alongside Billionaires For $297/Qtr

We had a heavy event calendar last week for markets, with the Fed, BOJ and BOE meetings.  And then we had the anticipation of the G-20 Finance Minister’s meeting as we headed into the weekend.

As I said to open the week last week, markets were pricing in a world without disruptions.  But disruptions looked likely. Still, the week came and went and stocks were little changed on the week, but yields came in lower (despite the Fed’s third rate hike) and the dollar came in lower (again, despite the Fed’s third rate hike).

Is that a signal?

Maybe.  But as we discussed on Friday, the divergence between market rates and the rate the Fed sets is part central bank-driven Treasury buying (from those still entrenched in QE — Japan, Europe), and part market speculation that higher rates are threatening to the economy, and therefore traders sell short term Treasuries (rates go higher) and buy longer term Treasuries (rates go lower).  With that, the Fed has been ratcheting the Fed Funds rate higher, now three times, but the 10 year government bond yield is doing nothing.

As for the dollar, if your currency has been weak, no one wanted to head into a G-20 Finance Ministers meeting and sit across the table from the new Treasury Secretary under the Trump administration (Mnuchin) and be drawn into the fray of currency manipulation claims.  With that, the dollar weakened across the board last week.

All told, we had little disruption last week, but things continue to look vulnerable this week.  Today we have the FBI Director testifying before Congress and acknowledging an open investigation of Trump associates contacts with Russia during the election.  Fed officials have already been out in full force today make a confusing Fed picture even more confusing.  And it sounds like the UK will officially notify the EU on March 29 that they will exit.

With all of the above in mind, and given the growth policies from the Trump administration still have little visibility on “when” they might get things done, the picture for markets has become muddied.

This all makes stocks vulnerable to a correction, though dips should be met with a lot of buying interest.  Perhaps the clearest trade in this picture that’s become more confusing to read, is gold.

Gold jumped on the Fed rate hike last week, and Yellen’s more hawkish tone on inflation.  If she’s right, gold goes higher.  If she’s wrong, and the Fed has made a big mistake by hiking three times in a world that still can’t sustain much growth or inflation, gold probably goes higher on the Fed’s self-inflicted wounds to the economy.

In our Billionaire’s Portfolio, we’re positioned in a portfolio of deep value stocks that all have the potential to do multiples of what broader stocks do — all stocks owned and influenced by the world’s smartest and most powerful billionaire investors.  Join us today and we’ll send you our recently recorded portfolio review that steps through every stock in our portfolio, and the opportunities in each.  ​