BALTIMORE – Two things. One we understand. The other we don’t.
First, you gotta hand it to Wall Street. The financial elite were 1,000% behind Hillary. Then, when Donald Trump won the White House, within minutes, they were in his cabinet.
During the campaign, not only were they loading Hillary up with millions of dollars in funding, but they also regularly predicted doom if “The Donald” were to win.
Then, apparently within seconds, in the middle of the night, they saw a great dollar sign in the sky…
“By this sign will you conquer” was written upon it.
Not since the conversion of Constantine has a turnaround been so abrupt and so complete.
In a flash, the analysts at the nation’s top Wall Street firm suddenly realized something that had eluded them throughout the long and bitter presidential campaign: Tax cuts and spending increases might not be so bad after all!
The great sell-off ended. A buying spree took over… pushing up the price of Goldman Sachs stock by 40% and making its CEO, Lloyd Blankfein, the No. 1 beneficiary of the election. (Since the election, the value of his Goldman holdings have increased by $163 million.)
Now the Goldman boys are in practically every important office – Mnuchin in the Treasury, Cohn at the National Economic Council, Clayton (a lawyer who has represented Goldman for years) at the SEC, and Bannon and Scaramucci, also from the Goldman litter, ready to do what is asked…
Henceforth, they will think no more about what is good for Goldman, the Street, and themselves. Now, they are public servants… with only the welfare and happiness of others to worry about.
Filling Jefferson’s Boots
That’s what we love about democracy: It has the power to transform people as they rise to the challenges of public office.
People we considered lowlife hustlers and two-bit pols are suddenly elevated. Their feet grow to fill Jefferson’s boots… their heads expand to wear Adams’ hat… and, well, sometimes they can even wear Taft’s pants.
Seriously, what we admire so much about Goldman is that it is honest. We know what the Goldman bunch is up to: It is looking out for No. 1.
You remember Italian economist and sociologist Vilfredo Pareto?
As we reported here, Pareto explained that no matter what you call your government, it will be run by a few sharp people – whom he called “foxes.” They figure out how to get control of the political infrastructure and make it work for them.
Goldman is one foxy organization; it wasted no time moving into the D.C. chicken house.
Foxiest of the Foxy
But what is really surprising is what is going on in the “security” industry.
Spooks are the foxiest of the foxy… and the deepest part of the Deep State. Since the end of World War II, they’ve managed to scare trillions of dollars out of the taxpayers… even though the U.S. has not faced a worthy adversary at least since 1989… and even though almost all their “intelligence” is either trivial or wrong.
From the bungled Bay of Pigs Invasion to the fall of the Soviet Union (which Stansfield Turner, who led the CIA from 1977 to 1981, admitted that the agency “missed by a mile”), U.S. intelligence services have been out to lunch.
More recently, it was the CIA that dutifully fed the neocons the phony weapons-of-mass-destruction story they wanted to hear, resulting in a war that has so far cost $7 trillion.
And in the latest brouhaha over Russian interference in the U.S. election, apparently the key “intelligence” came from watching the Russia Today international television network (on which your editor is interviewed from time to time).
America’s spooks may or may not be very good at supplying useful intelligence, but they are definitely good at manipulating the system to stay in their cushy positions of power and money.
Director of National Intelligence James Clapper clearly lied to Congress when he said the NSA wasn’t collecting information on U.S. citizens, yet he continues to draw full pay.
Former acting Director of the CIA Mike Morell claimed Trump was an “unwitting” Russian agent, whatever that means. CIA Director John Brennan lied about collateral deaths from drone strikes. (He claimed there were none.) And Morell’s predecessor, David Petraeus, delivered state secrets to his biographer, with whom he was having an adulterous affair, then lied to the FBI about it.
He got nothing more than a slap on the wrist.
Time and again, incompetence and criminality in the “security” industry are overlooked and forgiven. And still, there are no fewer than 17 intelligence agencies in the U.S., with thousands of snoops, analysts, and informants paid largely out of classified budgets.
At a cost to taxpayers of billions of dollars a year, they spy on us, foreigners, and each other.
Why, then, would they pick fights with the new president over clownish “intelligence” reports?
If we’re right… and the main goal of the Deep State is to shift power and money from the rest of society to itself… what purpose is served by annoying the new commander in chief?
We don’t know. Mistake? Miscalculation? Something doesn’t add up.
Further Reading: As Bill keeps saying, the Deep State already controls just about every aspect of American life. In his latest warning, Bill exposes how the cronies behind the Deep State have pushed the world to the brink of an irreversible disaster. Learn more here as Bill reveals how it could all unfold… and, more importantly, how it could change your life forever.
BY Chris Mayer, Editor, Chris Mayer’s Focus
Yesterday, I showed you how holding a small portfolio of companies that reinvest earnings, rather than a large portfolio of dividend payers, can deliver outsized returns.
In my newest investment advisory, Focus, our goal is to own about eight to 10 stocks and watch them grow. Some of these names we may hold for many years.
My book 100 Baggers, which explains how to find stocks that can return $100 for every $1 invested, is the cornerstone of our strategy. We’re targeting companies based on a specific set of characteristics that past 100 baggers shared – and we look only for these traits.
Among the most important characteristics is the ability to earn a high return on capital… reinvest the profits… and earn that high return again and again.
Mark Boyar and his son Jonathan at Boyar Value Group share many aspects of our approach to investing. Their goal is to find companies whose intrinsic values exceed the going market price.
The Boyars gave 100 Baggers a favorable mention in a recent interview with Kathryn Welling in WellingonWallSt. (see page 6). I highly recommend giving the interview a read – there is a lot of wisdom there. To wit:
Patience is probably one of the most important elements of stock market investing. First, you have to find the great business at a good price, then you have to have patience – the fortitude and the ability to withstand gyrations in the stock market. That element is critically important.
Looking at your quote machine every single day is hazardous to your portfolio’s health – and I do look at it every day. But fortunately I have the discipline not to act upon what’s going on intraday or react to what’s going on day-to-day. Because by looking at that machine every single day – particularly on days when the market goes down dramatically – you tempt yourself to sell, perhaps, when you shouldn’t be selling. And conversely, when one sees euphoria – you’re tempted to buy when you shouldn’t be buying.
The better thing to do is really to turn off CNBC, don’t look at the Bloomberg machine on a daily basis and to know full well that if you own a stock in a good business and you own it for a very, very long period of time, there are going to be years when that stock might decline in value by 50% or 60% or perhaps more. But over time, if you’ve done your valuation work properly, it will eventually reach or come close to the intrinsic valuation that you’ve placed on the business.
Likewise, we ignore market noise and focus on the long-term ability of our businesses to generate wealth. If we select our stocks well, the day-to-day dramas on CNBC and Bloomberg won’t matter.
P.S. The strategy behind Focus is one I spent three years developing. It’s a system that can identify the next Starbucks, the next Apple, or the next Wal-Mart years in advance of anyone on Wall Street. I’m talking about the kind of companies that can fund your retirement with just one win.
I’ve shared this unique strategy with thousands of Diary readers. If you haven’t seen how it works, watch this special presentation now. But please hurry. It comes down at midnight tonight.
British Ambassador Played Key Role in Trump “Dossier”
A former British ambassador to Russia played a key role in American intelligence agencies receiving explosive allegations about Donald Trump and the Kremlin.
Trump Doesn’t Know/Care About Automation
A 2013 study forecast that 47% of jobs will be automated by 2034. But Trump doesn’t say a word about automation. His fan club doesn’t seem to talk much about it, either. Here’s why…
When You Should Never Sell… And Other Lessons From One of the Greatest Minds in Investing
The investing expert who beat Warren Buffett’s Berkshire Hathaway shares the most important advice he learned from studying history’s greatest investors.
Donald Trump says he’ll repeal Obamacare “sometime next week.” But yesterday, Bill argued that the world of the Deep State doesn’t operate like that. They don’t call Washington the “swamp” for nothing…
I don’t often disagree with your editorial content, but here I must. Although Trump may not repeal Obamacare overnight, he will repeal it – likely more rapidly than anyone expects.
Washington, D.C., has never seen anything like him, and he has outclassed them and outmaneuvered them whatever their attempts to thwart him. I have many disagreements with Trump from a libertarian point of view. But he is not a force to be reckoned with. Those who continue to underestimate his ability and determination are in for a big disappointment, in my humble opinion.
– Keith S.
Your explanation for the increase in health care costs for a family of four between 1961 and today leaves out one very important fact. Back then, as you mentioned, nobody had health insurance. Now that most do have health insurance, they USE it. And they never see the total cost of what they are “buying.”
They have a small co-pay, and that’s all they know. If everyone had a fixed amount each year that they could spend on health care, you would see a lot more “shopping around” and a lot more patient involvement in deciding which treatments are and are not actually necessary.
– Michael I.
Trump is a bankruptcy guy. The economy is headed for turmoil regardless of what he does. A couple of ideas…
Instead of slowly defaulting through inflation, the U.S. could quickly default. If Trump made that happen early in his term, he would have time to recover politically.
Trump could focus on rebuilding U.S. manufacturing in his first term. The U.S. is slap full of resources, so we could get along as a standalone entity during tough times. If Trump won a second term, then the U.S. could declare bankruptcy.
It seems to me that when the debt load and payment terms become unbearable, bankruptcy guys go bankrupt.
– Steve J.
Just a quick note to correct some facts about Ford trucks, which you mentioned yesterday.
In 1963, my grandfather purchased a new bottom-of-the-line Ford F-150… Or did they call it F-100 back then, not F-150? Anyway, it had to be the worst truck Ford ever built. And he paid exactly $2,000. So, I doubt that, in 1961, similar trucks would cost $4,000.
Not a week went by that he didn’t curse the thing. At least it would start in the winter when our ’59 Pontiac wouldn’t.
– Jerry B.
Finally, this in response to Bill’s recent issue on former Fed Chairman Alan Greenspan, “The Man Who Could Have Stopped the Bubble”…
Bill’s recounting of some of America’s meddling in the affairs of other countries was welcome. For that reason, and so many others, America is headed for a long, hard fall.
As the saying goes, “You get the kind of government you deserve.” America DESERVES Donald Trump.
– Dale A.
Are You the Next Bill Bonner?
We’re a fast-growing company with all the opportunities of a small startup and the stability of a deep-pocketed firm with a 30-year track record. We publish more than a dozen advisories covering finance and economics. And we’re looking for a smart analyst to help write a newsletter and share big ideas with the world. If you’ve ever wanted to make a living reading, thinking, and writing, we’d love to hear from you.
In Case You Missed It…
Thousands of Diary readers have already tuned in to learn about Chris Mayer’s Focus, an investment strategy that can show you how to find tomorrow’s biggest stock market winners today… before anyone on Wall Street is paying attention to them.
This presentation – and Chris’ special offer – will only be available until midnight tonight. So please watch this video before you lose your chance to hear all about this simple and wildly profitable trading strategy from the only analyst Bill follows with his own family trust money.