Senior Managing Editor of The Freeport Society
Hello, Fellow Navigator.
The upcoming election is at the top of minds right now… and understandably so. In just 51 days, our nation’s fate will be decided. Turn on any screen, and expect to be bombarded with the faces of Donald Trump or Kamala Harris, each new headline more facepalm-worthy than the last.
However, it’s crucial to remind ourselves that despite its overwhelming presence, the election isn’t the sole force shaping everything.
In fact, along with the latest fixations on polling numbers and debate performances, a seismic shift is occurring… one that affects all of us, regardless of who you’re voting for or whether you’re planning to vote at all.
“We’re at this precipice of monetary-policy change and that’s so much more important than politics for the market at the moment,” as Kathleen Brooks, research director at XTB aptly puts it.
While we’re all glued to our screens watching the political drama unfold, the dollar is quietly teetering on the edge of a cliff. Money managers are bracing themselves for the coming months, with volatility levels reminiscent of the regional banking crisis earlier this year.
The Federal Reserve, the all-powerful puppet master, is positioned to cut interest rates. This move, more than any debate one-liner or campaign promise, has the power to reshape the entire economic landscape.
Simply put, the dollar is showing signs of fatigue. August saw it stumble, and it hasn’t completely bounced back. The speculation? We might be witnessing the beginning of a sustained decline.
Before you panic, keep in mind this is exactly what The Freeport Society stays prepared for.
We’ve got a tried-and-true safety net: good old gold.
So, while the political circus surely brings daily drama, let’s keep our eyes on the real show: the complex dance of global currencies.
It might not have the same pizazz, or provoke as many heated discussions as an entertaining debate, but trust us, it’s where the real action is happening. And remember, whether the dollar soars or sinks, we’re prepared.
After all, all that glitters isn’t just campaign promises – sometimes, it’s the gold in our portfolios.
For more insight on gold, and how it can grow – and protect – your wealth, read our latest issue of The Freeport Investor (subscription required). If you’re not a member, click here to learn more.
Now, let’s review what we covered this week at The Freeport Navigator…
Debate Watch: A Harris Stock Market Slaughter or Trump Stagflation
Ahead of last Tuesday’s debate, Charles gave a rundown on each candidate. And it comes as no surprise that either option will leave heads spinning. What’s on the table? Harris’ detrimental tax position or Trump’s trade lunacy. Continue reading to learn more about our lose-lose situation.
The Main Ingredient Needed to Turn This Market Around
A rare economic event is set to occur in mere days. It’s happened only three times in the last 30 years, sending stocks soaring and solidifying our economy. In Tuesday’s Freeport Navigator, Luke Lango explains the domino effect and shares where you can learn which stocks to keep your eye on. Click here to continue reading.
The Worst Shock of All From Last Night’s Debate
At this point, we don’t expect much from political debates – let alone this election. We could see our disappointment from a mile away. The worst shock of all? Urgent topics like our failing social security system, and the disruptive nature of the ESG racket, were left in the dust. Click here for Charles’ full take, including where to go from here.
Find the Companies Rejecting Stupid Ideas
You don’t need a fancy Wharton MBA degree to understand that there are fundamentals to a business. Yet, corporate America is slowly forgetting – or being bullied into forgetting – these truths, spending an inordinate amount of management time into DEI programs and ESG efforts. Continue reading here.
Looking Ahead
As I’m writing this, there will be no third debate. But as I’m sure you know, that could change within the hour.
My question is: Do we even want to subject ourselves to another round of heated, unproductive political sparring? Do inquiring minds really need to know whether Haitian migrants are eating the good cats and dogs of Ohio?
Maybe we’re better off with no more debates.
Now, for the moment we’ve all been waiting for: Next Wednesday’s long anticipated, pivotal interest rate decision from the Fed.The futures markets are pricing in a 57% chance of a 0.25% cut and a 43% chance of a 0.5% cut. But beyond the cut itself, we’ll all be watching for hints or innuendos of how many additional cuts to expect.
Wall Street wants a bigger cut and signs that more will be coming. But be careful what you wish for because the Fed generally only makes cuts of 0.5% or more when it’s looking ugly out there. So if Powell goes big, that might imply he knows something we don’t about the likelihood of a recession.
Well, at least next week won’t be boring!
Stay tuned, as we’ll have a lot more to say once the news rolls in.
To life, liberty, and the pursuit of wealth,
Teresa B.
Senior Managing Editor, The Freeport Society