Let's see. Where are we? Dow up 88 yesterday. Gold up $22. What's pushing up the Dow? A lot of chatter about a "new American century"... and an apparent recovery. You know our position: Recovery isn't possible. Drug addicts do not recover by taking more drugs. They may get high again... but that's a different story.
The Fed's EZ money policies will either succeed or fail. Either way, it will be a disaster. If they succeed, interest rates will rise... and America's debt-addicted economy will get the shakes. If they fail, the Fed will double down with further acts of reckless improvisation – including bigger doses of credit – until the whole thing blows up.
Today, I want to do something a little unusual... I want to tell you why I've set up something called a "family office." Family offices have for hundreds of years been protecting and growing family wealth, based on a number of unique long-term investment strategies.
We're here on a bend in the Rhine river. Enjoying the 4th of July. From our hotel, we see the Rhine water flowing swiftly, from right to left. (Let's see, the Rhine flows from South to North... to discharge into the North Sea. Or somewhere near there. So, if the water is flowing to the left, we must be on...
Dow down -42 points. Gold down $12 an ounce. Nothing special. But gold must be getting close to a bottom. No one has anything nice to say about it. The pundits and prognosticators are more pessimistic than in any time in recorded history. Gold miners are getting wiped out. Gold speculators are so gloomy their wives are hiding the carving knives and...
Zurich is a delightful city. So much history! So much beauty! So much money! You can barely throw a Kruggerand in any direction without hitting a rich banker or his model wife. They stroll along the Limmatquai. They dine at the Kronenhalle. They shop on Bahnhofstrasse. And what do they think of today's markets?
Yesterday, we took the train from Paris to Zurich, passing through the valley of the Rhone... past castles... medieval churches... lazy, picturesque rivers... quaint villages... to Lyon... Basel... and then skirting the Alps and lakes to Zurich. The scenery was remarkably beautiful. But the most remarkable thing we saw wasn't outside the train car; it was in it.