Weapons of Mass Distraction!

In a futile effort to slow the political hemorrhaging, the Trump administration has resorted to the weaponization of information, through a concerted campaign of mass distraction. After enduring a high visibility beating with his first legislative effort, the American Care Act, President Trump is attempting to move on to tax reform. However, the growing cloud of concern and investigation surrounding election interference and previously undisclosed ties between members of the new administration and the Russian oligarchy has commandeered all media attention. The only responses from the White House are denials, retractions or modifications of previously provided information, and finger-pointing to unrelated and uncorroborated allegations of Democratic security leaks, imaginary validations, and a “witch hunt” led by Democrats to spend time, money and effort detracting from America’s truly important issues.

Instead of exclusively focusing on important legislative matters, the House and Senate both find themselves mired in investigative duties, which seem to be growing on a daily basis. This morning’s newest addition is the revelation by deposed National Security Advisor, Michael T. Flynn that he suddenly “has a story to tell,” but needs immunity in order to do so. These constant investigative additions are creating policy implementation delays, which translates into the kind of market uncertainty and consternation that could finally derail the second longest running bull market in America’s financial history. In a worst case scenario, investigation results could potentially leave the administration politically impotent for the entire term.

In spite of an “on course” report from Fed Chair Janet Yellen and the supporting data provided, the stock market is on course for a lower close than last month. Overvalued stocks, falling oil prices and stagnant corporate profits have been an ongoing concern, but the euphoria that’s carried the market since the election is giving way to the reality of Washington gridlock. And a growing percentage of investors are participating in undervalued emerging-market and eurozone equities, which appear to be safer and hold greater potential for continued growth.

As investors continue to weigh the growth potential of continued U.S. market exposure against the inherent downside danger of large hedge funds ability to move huge dollar amounts in a matter of nanoseconds and the convoluted uncertainty of today’s politics, more and more are coming to the realization that the typical 5% – 15% portfolio allocation for gold and other precious metals is simply not enough. Today’s higher stock prices and lower precious metal prices are just another great reason to increase physical precious metal holdings now.