The Freeport Navigator

The market seems to have misunderstood the Fed’s intended message recently. But investors aren’t the only ones “misunderstanding” the inflation situation.

There’s an anonymous masked man running for president in Ghana. No-one knows anything about him, what he stands for, or the policies he intends to enact. But if given the choice between him and any of the contenders in the 2024 U.S. presidential election, the former would get my vote.

Inflation is under control. Nothing to see here! The Fed will go back to lowering rates again by March. Sometimes I feel like I’m living in a parallel universe. And by “sometimes,” I mean every time I hear the monthly inflation report mentioned in the media. But is inflation really under control? Not quite. Can the Fed ever bring it under control?

So many things in life depend on the context. Is it wrong to lie? Is it wrong to punch someone? Is it wrong to end someone’s life? How about advocating genocide?

The housing market has had a tough year, not because prices have collapsed but because they’ve move steadily higher, despite high interest rates. Now, mortgage rates seem to be cooling, but don’t be fooled. The housing market is in dire straits.

Like a meeting of New York’s Five Families (à la The Godfather), the ESG mob is holding COP28. Despite all the pearl-clutching going on, they’re not going to stop the inevitable force that is the world’s need for fossil fuel-based energy. Let’s talk about why…

Funds registered as having outright ESG objectives hold more tech assets than any other sector, and mega-cap tech names like Apple, Microsoft, Amazon, and Nvidia tend to dominate their holdings. These same tech names have been some of the biggest winners in artificial intelligence (AI). This was not genius by ESG investors… or proof that it somehow “works.” It was a case of being in the right place at the right time… and it seems that rather than be happy with their good fortune, they’re actively looking to strangle the goose that laid the golden egg.

The current national debt is just over $33 trillion. Of that, $6.8 trillion is “intragovernmental” debt. Why does the government owe itself money? Because it’s been borrowing hand over fist from the Social Security trust fund. But here’s a dirty little secret about that…

There’s a lot of noise about how “great” Black Friday numbers were this year. But dig just a little below the surface and what you find is disturbing. But, knowledge is power that you can use to not only survive, but thrive.

The world has lost a great man and one of the best investors of all times. So today, in honor of his memory, let’s look back at his life in awe and learn some valuable lessons while we’re at it.