Option Queen Letter By the Option Royals Jeanette Young , CFP ® , CMT, CFTe, M.S. 4305 Pointe Gate Drive Livingston, New Jersey 07039 www.OptnQueen.com [email protected]May 1, 2016 What does a weaker US Dollar mean for you and multinationals? Just as we advised almost a year ago, that a strong US Dollar was deflationary and would hurt US multinationals, we are now suggesting that a weaker US Dollar will be good for multinational earnings. The fly in this result would occur if the global competition fights for their newly acquired market share by cutting prices. As the US Dollar weakens, we gain market share and our products become more competitive. Another result of a weaker US Dollar is its effect on the price of commodities traded in US Dollars and that, has been on the rise. Is it time to diversify into commodities? Perhaps it is. Remember the FOMC wants a little inflation in the pipeline, which will be achieved by a weaker US Dollar. The problem is in controlling inflation, which, eventually will become a problem. Inflation does lead to more spending and also an expansion of the economy. The FOMC will be concerned with inflation but likely will allow it to bloom in an effort to fertilize the slow growing economy. What is the effect of negative interest rates? “”Go to the mattress” a phrase used in mob-family wars now is applicable to where cash, say in Japan, goes when banks charge for warehousing money. Would you pay a bank to hold your money or find a tin can in which to hide your cash or perhaps the mattress on which you sleep. This kind of behavior can also lead to stashing your savings in gold coins or bars. Cash in the tin can is a cheaper way to save insomuch as you may not have to pay the spread between the actual value of the gold and the seller’s price demand. We continue to suggest that the spread trade between platinum and gold will likely reward the investor who buys platinum and sells gold. As a footnote, we have no positions in either at the moment. Dear politicians, Democracy is not the Republican or the Democratic Party but rather the voice of the people. Want to know why we are so angry….we lost our voice and now, refuse to be herded into either party’s plan. Isn’t it about time that we the people regained our collective voices? If we vote for a representative to vote our wishes, they should do so on all ballots not just one. How dare they not fill their fiduciary responsibilities! If convention delegate can’t vote the people’s wishes, they should step down altogether. Why else would they have been sent there? On the other hand, perhaps the vote count of the public should rule in electing a candidate
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