The Future Of GMM

I am sure you noticed we have been a little distracted with health issues over the past year.  Some readers recently asked if GMM has “turned into s shrine for CK.”  Well, yes, for now. 

CK is a considerable part of the team here, and we love her just a much as our readers do.  She has written some excellent posts that have made them a lot of money.  

She has never worked in the securities industry as an analyst but should have.  I ran enough research shops on the Street, hired several analysts and economists, and would have hired her in a heartbeat.  She is brilliant, has an incredible work ethic, and has developed a very rigorous algorithm to break down companies.

I have also run several trading desks and hired many traders, and CK, though a longer-term investor, has great trading instincts.  I bailed on this market at around 3200 S&P and still think I will be able to buy back in much lower, but she hung tough, saying, “I am going to ride this gravy trade as long as it lasts.”

When I had to fire or cut a trader’s position when they were incapable of doing so, I would explain to them the “Soundgarden mindset does not work on this desk.”

Cause I know I’m headed for the bottom
I know I’m headed for the bottom
I know I’m headed for the bottom
But I’m riding you all the way
Yeah, I’m riding you all the way
I’m riding, yeah

I saw how Carol made a ton of money in the Ark Funds and then realized that she had made a mistake through the price action and additional research.  She immediately cut her positions.  I have seen her do this on other losing positions.  Good instincts.  I want her on my side.

Future Of GMM

We will be back.   Carol is fighting a long shot, uphill battle recovering from a stem cell transplant but will play a huge and considerable role when she recovers.

As for me, I am still struggling with a few setbacks from a major surgery earlier this year but am almost back to full health.  I will be back with some cracking global macro research and more trading and investment themes when the markets come to their senses unless we are in hyperinflation, which is the only conceivable way to rationalize current valuations and the circus that markets have morphed into.

We have always believed the “Fed put” will end with some nasty inflation and wondered if the FOMC, though they claim they have the tools to control inflation, has the stomach to do what it takes.  I seriously doubt it. 

They couldn’t even handle a 20 percent correction in December 2018 and caved to the whining of President Trump and Jim Cramer. 

“By June 2019, unemployment reached 3.6% but Powell let President Donald Trump bully him into stopping the tightening process. Now economists at the Biden White House have a preference for accommodative policies, and Powell is up for reappointment.” – MarketWatch

I just received this text from a Brazilian friend who owns a restaurant in Northern California:

“Hey G,  Texting to let you know I have a lot of déjà vu.  A couple of days ago, I went to the restaurant supply store, and a package of bacon I used to pay $20 for was $100.  I walked up and down the store and saw empty shelves. I don’t know, it feels like Brazil in 1988.

It’s going to get interesting.  Stay tuned, folks. 

I’ll be back!

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