Join us at the Independent Investor Summit in NYC on September 12th!
Markets are breaking records. Public equities are outperforming. And individual investors are driving it all. It’s officially the rise of the retail investor.
On September 12th in NYC, I’m hosting the Independent Investor Summit — a one-day event built exclusively for self-directed investors.
We’re bringing together some of the smartest public market investors I know for a full day of macro insights, market predictions, and one-on-one fireside chats. Speakers include Darius Dale, Jordi Visser, Jeff Park, Chris Camillo, Tom Sosnoff, Jon & Pete Najarian…plus more to be announced.
Pomp Letter subscribers can use code POMPLETTER50 for 50% off GA tickets if you register here by August 8th. See you all there.
To investors,
President Trump and his administration announced a significant trade deal with the European Union yesterday. It is such a big win for America that it is almost unbelievable what the EU agreed to.
In fact, the Financial Times — the publication that would love to hate on anything representing America, capitalism, or Trump — had to publish the following sentence:
“There is no hiding the fact the EU was rolled over by the Trump juggernaut, said one ambassador: ‘Trump worked out exactly where our pain threshold is.’”
Just a brutal reality check for all the experts that predicted foreign countries wouldn’t capitulate to the tariff pressure. Instead, the European Union basically gave America whatever we wanted as part of this deal. Here is a quick breakdown of the highlights:
* The EU agreed to a 15% across the board tariff
* The EU agreed to buy hundreds of billions of dollars in US military equipment
* The EU agreed to make $600 billion in investments in the US
* The EU agreed to buy $750 billion of US energy
* The EU agreed to open their markets to US products
I don’t care what you think about Donald Trump. Some people like him, some people despise him. I am merely focused on the financial markets. And this deal is going to send asset prices much, much higher.
Not only is the deal so lopsided that I had to read it multiple times, but a new trade deal with a major trading partner like the EU brings the highly anticipated clarity desired by the market. The more clarity we have, the more confidence investors have to put their capital back into financial assets.
And this clarity is coming at the exact moment that investors were getting complacent. You can see this perfectly in the VIX, which closed below 15 on Friday. That is the lowest VIX reading since February.
Buckle up now though. A major trade deal is the type of catalyst that could send stocks, bitcoin and gold higher. Add in the Fed’s meeting this week and you could have an explosion in asset prices if the Fed was to cut interest rates.
Unfortunately, I don’t think we get the interest rate cut. It would be a welcomed surprise, but I wouldn’t count on it. However, I would continue to count on the US government printing money. They have no choice but to continue debasing the dollar in order to deal with the national debt.
And it is very clear that the expansion of global liquidity has driven the S&P 500 higher over the last six years. Just look at this chart:
So here is the big brain conclusion from this weekend’s news. The EU and any other country entering into trade deals with the United States will have to agree to very large capital investments in America. Where are they going to find that money? They will print it of course. So each trade deal brings higher certainty that global liquidity will continue to expand, which means stocks are going higher.
And if stocks are going higher, you know bitcoin is going to make sure it goes even higher. Bitcoin follows global M2 supply like a glove:
So don’t get confused. We are in a bull market. Money printers are getting turned on. Trade deals are being announced. Asset prices are headed higher. And we will eventually get the interest rate cuts. Boom, bang, bada-bing. Higher, higher, higher.
Pessimists may not like it, but there is nothing they can do about it. Liquid asset prices have a structural tailwind for the next decade or so. And trade deals are merely adding fuel to that fire.
Hope you all have a great start to your week. I’ll talk to everyone tomorrow.
- Anthony Pompliano
Founder & CEO, Professional Capital Management
Jordi Visser on Bitcoin Going Higher and US Grid Capacity Issues
Jordi Visser is a macro investor with over 30 years of Wall Street experience. He also writes a Substack called “VisserLabs” and puts out investing YouTube videos.
In this conversation we discuss what is going on with bitcoin, Fed independence, interest rate expectations, Azoria lawsuit against the Fed, PMI, and everything that has happened in the last week.
Enjoy!
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