At this crisis point in history - what could possibly create these rare and extraordinary gains?

An Arizona multi-millionaire's revolutionary initiative is 
helping average Americans  find quick and lasting stock market success.

Since the Coronavirus came into our lives this slice of the stock market has given ordinary people the chance to multiply their money by 96% in 21 days on JP Morgan.

Trading  | June 5, 2017

Shortly after publishing his latest blog post in which Ray Dalio, the head of the world’s biggest hedge fund Bridgewater, said he is growing increasingly worried about Donald Trump’s “pursuit of so much conflict”, adding that “the more I see Donald Trump moving toward conflict rather than cooperation, the more I worry about him harming his presidency and its effects on most of us” (we will have more to say on that momentarily), Dalio tweeted his thoughts on China’s recent mauling of Yuan shorts.

In what may come as a surprise to free market purists, Dalio was unexpectedly supportive of China’s decision to once again intervene in the FX market and crush countless Yuan bears after the recent Moody’s downgrade, even if it set back China’s currency “liberalization” process – for which China was so richly rewarded by the IMF last year when the Yuan became a member of the SDR basket – by months if not years, for three reasons. This is what he tweeted moments ago:

China’s policy makers’ decision to squeeze the shorts in its currency is, in my opinion, a smart move because it:

a) demonstrates the Chinese government’s power,

b) discourages those who would lose confidence in its currency (in turn lessening the desire to sell the yuan), which helps stabilize the balance of payments and currency, and

c) produces a tightening that works well in conjunction with tighter monetary policies to tighten credit (which is appropriate now).

It also means that China no longer has even remote “price discovery” in what has become the fulcrum Chinese security, but that is a secondary consideration when there are profits to be made.

As such, it also appears that while Kyle Bass may (still) be short the Yuan in size, on the other side of the trade – in addition to the PBOC of course – he now has an even more enviable counterparty: a hedge fund with roughly $160 billion in AUM, and thus even more size. If confirmed that Bridgewater is indeed long the Yuan, the Dalio-Bass confrontation – not to mention that it would determine the fate of China’s “everything bubble” – could well be one for the ages.

A revolutionary initiative is helping average Americans find quick and lasting stock market success.

275% in one week on XLF - an index fund for the financial sector. Even 583%, in 7 days on XHB… an ETF of homebuilding companies in the S&P 500. 

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