Despite these trying times, I hope this journal finds you all in good health and spirits.
There is little doubt that the recent pandemic has caused a warranted social reaction. Whenever there is mass hysteria governments, institutions, as well as individuals look for stability. This is a natural reaction that is innate in human behavior.
Despite recent volatility in the marketplace – the likes of which is rarely seen- the US Dollar is still the world’s most stable currency. For certain, this is the perhaps waning but true sentiment among the masses as well as the parties that are directly involved with currency valuations. Due to this perceived phenomenon, government’s, central banks, and multinationals are rushing to convert foreign currency to the US Dollar and the simple- yet immeasurably important- laws of supply and demand have resulted in the aberrant rise in the value of the dollar. Due to the cycle that economic indicators follow this is also a rarefied occasion where we can, from our perspective, identify the very indicator that engendered the massive inertia that we have seen in the markets.
We do not wish to detract from the severity of the social condition we are faced with yet this opportunity presented itself from a technical as well as a fundamental tectonic shift underneath the surface that has caused a wave that, as of now, sees no watermark. Yesterday we posted on our Facebook page that the Dollar will seek higher levels and we recommended that prediction to our membership and to all others that may have engaged with the post.
As Winston Churchill has said, “never let a good crisis go to waste.” Again it is important to learn a very valuable lesson from this experience and that is that money is not the most important thing and that it is surpassed by many other experiences, emotions, and the well being and health of our world community.
Many opportunities will inevitably arise that will create even more opportunity than is traditionally available in leveraged markets. We will overcome this and the mass hysteria will subside. Human emotions are like the fulcrum of a ubiquitous lever and “homeostasis” will prevail and things will once again balance themselves out.
The most we can hope for is that our families, our fellow members of humanity, as well as ourselves stay healthy as we overcome this crisis.
Be well and look to the good things that lie ahead!
Jack Burgundy- Senior editor of “The Weekly Wizard”