Good Evening, My what a difference a day can make. Yesterday it was doom and gloom. The trade wars are going to bleed us dry. The government is going to destroy our Farmers and industry… and so on and so forth…… Yes something can always happen something can always go wrong. That noted, I said in one of my recent blogs that we are one trade agreement away from a rally. Mind you, we don’t have a full blown trade agreement yet but we are close and that was enough to move the market higher today! The bears said President Trumps protectionist policies would be the death of our economy. Now I’m not taking sides here. I never do and you all know it, but I have to call it like I see it. Even a blind man can see that the purpose of these proposed tariffs is to bring the other side to the negotiating table. Currently there are tariffs in place and they have been in place for a while and they are on U.S. goods. So back to the protectionist thing. My question to you is this. If our President is indeed a protectionist President then why did he propose dropping all tariffs to the European Union? I’m sorry folks but that is free trade not protectionism. That’s about as free trade as you can get. Why did I mention this in first place? It’s plain and simple, markets like free trade. Free trade is good for the economy and just to show you that I’m not taking sides I’ll quote a Democratic president. Bill Clinton said the following: “It’s the economy stupid” and you know what? He was right! The bottom line is that if you listen to those with a political agenda your portfolio will suffer. You have to cut through all the crap to see what’s really going on. I said it before and I’ll say it again. China and Europe are not going to walk away from this cash cow, They might make a little less money on a level trading field but they will still make a lot of money. Taking into consideration the fact that almost every trade relationship we currently have is to the other sides advantage it’s not a stretch to say that they have a lot more to lose than we do and that’s the reason that this mess will ultimately improve our situation. And one more thing. If the media would just shut up with the politics and give up on their attempt at social engineering and get out of the way this trade war mess would get over with a whole lot faster! Don’t give us a political agenda, just give us a free market where we can make some money to support our families.
The days trading left us with the following results: Our TSP allotment bounce back with a gain of +0.52%. For comparison, the Dow added +0.68%, the Nasdaq +1.17%, and the S&P +0.91%. Thank God for a day in the green! One thing we’ll have to watch is that if trade barriers are indeed dropped it will have a negative effect on small cap and domestic investment. In other words what was good will be bad and what was bad will be better…
The days action left us with the following signals: C-Buy, S-Neutral, I-Buy, F-Neutral. We are currently invested at 100/S. Our allocation is now +7.46% on the year not including the days results. Here are the latest posted results:
| 07/24/18 | Prior Prices | ||||
| Fund | G Fund | F Fund | C Fund | S Fund | I Fund |
| Price | 15.7832 | 17.8267 | 40.0879 | 52.5175 | 30.696 |
| $ Change | 0.0012 | 0.0270 | 0.1924 | -0.5291 | 0.2509 |
| % Change day | +0.01% | +0.15% | +0.48% | -1.00% | +0.82% |
| % Change week | +0.03% | -0.19% | +0.67% | -1.01% | +0.60% |
| % Change month | +0.19% | -0.04% | +3.86% | +2.06% | +1.97% |
| % Change year | +1.56% | -1.59% | +6.59% | +8.36% | -0.52% |
| L INC | L 2020 | L 2030 | L 2040 | L 2050 | |
| Price | 19.9559 | 27.5429 | 31.7694 | 34.7212 | 20.1801 |
| $ Change | 0.0180 | 0.0366 | 0.0723 | 0.0898 | 0.0565 |
| % Change day | +0.09% | +0.13% | +0.23% | +0.26% | +0.28% |
| % Change week | +0.09% | +0.14% | +0.23% | +0.26% | +0.28% |
| % Change month | +0.74% | +1.08% | +1.88% | +2.19% | +2.46% |
| % Change year | +2.07% | +2.43% | +3.36% | +3.71% | +4.04% |
That’s all for tonight. Have a nice evening and may God continue to bless your trades.
