Psychology of Things…

I often say in this blog that that my course work in Industrial Psychology and Logic, intertwined with the outside the box views of one of my professors, Buckminster Fuller back in the 1960’s has been much more important than traditional economic supply-demand teachings. This is especially true with Donald J. Trump in the Whitehouse. Smart people like Dalio and Druckenmiller are falling all over themselves in explaining things, but to little avail. Yes, things will all fall into place at some point and maybe this is the point where Trump succumbs to a life of failures, but a betting person would probably abstain from that bet. What is becoming apparent over this weekend, is that the failure of this war is really about the influence on Trump’s failing mind of two people, Netanyahu, and Marco Rubio. Marco has brought back the neocon thinking of the Bush Whitehouse’s, regime changes around the world. I don’t want the Republicans to win the mid-terms, but if they want to have any kind of chance, they should probably impeach Marco and deport him to Cuba.

Getting back to the economy and the markets, I made a post Friday showing the Macro Sentiment Index that I use to see what is happening. It incorporates three threads, stock prices, bond prices, and precious metals prices some based on long positions and some with short positions. This ties into some research I did years ago that pointed out rising stock prices go along with a solid productive environment, rising bond prices go along with declining inflation and rising precious metal prices go along with a chaotic structural environment. At this time from the chart it would appear that a good productive environment, declining inflation, and less chaos is Looming, not here yet but down the road it is in wait and see mode.