Central Banks (Also known as SUPER CENTRAL BANKS, ‘THE FED’, ECB, BOE, BOJ, PBOC, et al. AKA “SCB’s”) continue to be in complete control of anything and everything that matters. The un-official leader of this group, the US Federal Reserve, is signaling a rate rise in June or July. The markets are showing their support of this by rallying. Stocks are up, oil is over $50 for the first time in 2016, and the markets fear of China’s Ginormous Epic Bubble imploding has been forgotten…for now. This fear for China’s leaders will continue to be front and center.

The US Fed doesn’t think for one moment that it raising interest rates .25% will have a direct impact on the US Economy. They do however with out doubt believe that raising interests will continue to have global impacts and thus indirectly impact the US.

Economics Laws like, Supply, Demand, Diminishing Marginal Returns, Diminishing Marginal Utility always apply. This is why they are called “The Laws of Economics”. Sometimes it just takes a while. It may take longer in China then it has ever taken anywhere else simply because the ‘Command and Control’ involvement of the Peoples Republic of China is greater than any other governments involvement in history.

At some point, the logic and optimistic emotion of the Chinese People’s Standard of Living increases will be replaced with pessimism and eventually panic. Why? Do you ask, because as Milton Friedman once said, “ If you put the government in charge of the Sahara Desert in 5 years you will have a shortage of sand”. Government, in any form is not the best allocator of capital.  The continued allocation of capital by the Chinese government continues and yet they continue to enjoy Diminishing Marginal Returns on this injection, Supply of Commodities is much higher than Demand. And Consumer Demand growth for most goods, especially real estate, is slowing dramatically.

The opinions voiced in this material are for general information only and are not intended to provide speci­fic advice or recommendations for any individual

The Economic Forecast set forth in the presentation may not develop as predicted and there can be no guarantee that strategies promoted will be successful

Investors should consider the investment objectives, risks, charges and expenses carefully before investing

To determine which investments may be appropriate for you, consult with your Financial Advisor

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