29/01/2016

Trivium Analytics Canada - Weekly Summary - General Thoughts by Jeff Fitchett

This past January has been quite eventful.  Stock market volatility picked up significantly as I expected.  Corporate layoffs have intensified and the Federal Reserve continues to be out of touch with reality as I highlighted in my article titled: Batten the hatches, A response to the US Federal Reserve. The Bank of Japan has followed in the path of European Central Banks and introduced negative interest rates.  The Bank of Canada is hinting at negative interest rates as well.  

Geopolitical issues continue to weigh on the world.  The influx of migrants and refugees into Europe are degrading European culture and stability.  Sexual assaults have become rampant and public backlash is intensifying.  European politicians have no one to blame, but themselves for the instability.  They have followed the lead of the United States by taking part in bombing Afghanistan, Iraq, Libya, Syria, Yemen and a number of other countries.  Economic conditions are so bad that many people are fleeing their countries and migrating to developed nations in an effort to make a living.  As well, Saudi Arabia continues to commit massive human rights abuses in Yemen.  A UN panel just reported that Saudi Arabia conducted 119 targeted attacks against civilian targets within Yemen.  Sadly, Saudi Arabia holds the chair of the UN Human Rights Council.  Unbelievable!  

The majority of Americans do not like their government and are becoming more disenfranchised because of the state of affairs within their country.  Hillary Clinton may be indicted within the next couple of months for her massive security breaches by using a private computer server that contained classified, top secret and the highest classification of top secret information.  Donald Trump continues to lead the pack of presidential contenders as voters have lost faith in the establishment candidates such as Hillary Clinton, Jeb Bush and Marco Rubio.  I think the US empire is devolving rapidly and their society is representative of a nation in decline.  It’s a shame because the US, 100 plus years ago, was the beacon for what was possible from a freedom and opportunity standpoint.  Their days are numbered as the top superpower.  In addition, police brutality continues unabated and uprisings such as the Bundy Ranch standoff are becoming more frequent.  I won’t be surprised to see a revolution build within the US and State secession movements will become more common in the years ahead.  


As I highlighted in my article; The Weight of The World, I expect a bounce in the equity markets to happen or some event or topic to distract the masses from the serious issues facing our world today. I encourage you to focus on the underlying fundamentals and make decisions based upon the reality we live in.  Try not to be sucked into a false sense of security as the consequences of ignoring reality can be quite harsh. 

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