June 3, 2023
As I prepared client reports for a disappointing May, I did extra research on my performance and the key factors that affected my performance.
Over five days in early March, crypto-currency-involved Silvergate and Signature Banks failed, followed by Silicon Valley Bank (March 10). Confidence in the US Dollar quickly eroded, and Gold futures soared. In just over 30 days, the price of Gold lifted from about 1820 to 2050.
Then at 9 am ET on Monday, April 17, the Fed started an expedited closed meeting that immediately pulled the plug on Gold and support for the US Dollar. My Gold and Oil-heavy portfolio peaked at the close on Friday, April 14. Despite a Bear market for commodity-related stocks, my performance for October 2 through April 14 (six-and-a-half months) was +23.6%. The losses since then have been substantial because from October 2 through yesterday, Friday, June 2, I am up +12.9% after losing -6.1% in May.
I call the Fed the enemy because they go from one mistake to another. Despite changes in members and leaders, they have been a disaster for many decades. The biggest reason, in my opinion, is that their people in private take a hammer approach instead of massaging policy decisions. That’s good for the Humongous Bank & Broker (HB&B) group, who are privy to their discussions and decisions, while the rest of us are left guessing what these networked insiders have decided behind closed doors.
If we have learned one thing about the Fed, their meetings should never be private. We should not wait a few weeks to read doctored transcripts of their discussions. The Fed is a secret organization owned and controlled by HB&B. HB&B pretends to be fiduciaries regarding our wealth. However, their mega-billion dollar quarterly profits are mostly derived from trading securities against us, their clients.
The British have the Royal Family and hereditary peerage. America has the Fed and Humongous Bank & Broker. These privileged groups get wealthier every year while most of us struggle financially. As long as these charades continue, our fate is predetermined.
US Dollar Index chart (showing dates of the Silicon Valley Bank failure and the emergency Fed meeting)
https://tvc-invdn-com.investing.com/data/tvc_0f71610180feaa9044c66d9a5ba67fd9.png
Gold futures chart (showing dates of the emergency Fed meeting and what happened to Gold after every subsequent Fed meeting)
https://tvc-invdn-com.investing.com/data/tvc_0c0498db5a41c33c431765762bcd7626.png
