Industrial Shares Lead Markets Higher

Equities advanced as President Trump’s trip to Saudi Arabia netted deals that lifted industrial shares and crude pushed to a one month high before OPEC meets this week. There is now speculation the economy can weather the political turmoil and grow at a pace greater than the past 10 years.

How will President Trump fare at the upcoming G-7 and NATO meetings? Is speculation rising that he will have similar success in Europe as he has had in the Middle East?

This week the Minutes from the May FOMC meeting are released. Odds are rising that an interest rate increase is all but a certainty at the June meeting. To remind all, before the Comey firing, odds were at 100% that the overnight will be increased at the next Committee gathering.

As written many times, I believe society, the economy, the global order is in making a generational change. Most political scientists will agree such changes occur every 30-40 years and such is to be expected.

To most, change is frightening even if the status quo is uncomfortable. There will be winners and there will be losers.

It is against this backdrop that explains why I believe a macroeconomic and geopolitical thesis is required before making any decisions, a view that is inverse from the passivity investing strategy that is today dominating the markets.

Last night the foreign markets were up. London was up 0.16%, Paris was up 0.73% and Frankfurt was up 0.56%. China was down 2.21%, Japan was down 0.33% and Hang Sang was up 0.05%.