Hey everyone!
Sending out another FREE issue of “The Kale Letter” today because I love you guys.
Thanks for all the great feedback yesterday, you are all seriously too nice.
Remember, normally I’ll send one of these a week for free which is great.
HOWEVER, if you subscribe (it’s only $10 a mth or $50 a yr) I’ll send a letter to you 5 DAYS A WEEK.. :)
+ the Podcast version, the whole nine yards. I promise to do everything in my power to deliver you $1000+ worth of value every single month. If you don’t get that value please email me and I’ll refund you in FULL.
OKAY OKAY OKAY LET’S GET TO THE BIG NEWS, WOW.
Trump tweeted this out…
So, what happens when the leader of the free world + the first lady gets Covid 1 month before the election?
Hard to say for sure, unprecedented times, but here’s what I would look at if I were you.
Few people will highlight this, but this is what is ACTUALLY GOING ON.
FACT #1 - Markets HATE uncertainty.
(keep reading for fact #2, as it’s my opinion that that fact will be THE REASON that we DON’T experience a huge crash here….)
Here’s the GRAPH OF THE DAY.
It demonstrates very simply how this works. When the market gets very uncertain, like it did back in March for COVID, it sells off, rapidly.
We actually had the LARGEST DROP IN STOCK MARKET HISTORY this year on March 16th, 2020, when the Dow dropped a WHOPPING 2,997 points.
Other stock market drops have occurred, predictably, when other times of crazy uncertainty hit us…
2008, 9/11, etc.
Now, I am NOT saying that Trump getting COVID is EQUAL to ANY of these events above, far from it.
But I think we can all agree that it has a pretty large element of uncertainty to it.
SO, all else being EQUAL, the markets SHOULD take a nose dive.
“Should” being the key word here…….
FACT #2 - STIMULUS completely changes the equation.
Look at this, just look at it…
Ever since the governments (not just in the US btw) passed UNPRECEDENTED stimulus… I MEAN LOOK AT THE SIZE OF THAT NUMBER….
The stock market has had a RALLY unlike anything we’ve ever seen.
It actually has been UP from it’s highs earlier in the year lately…
Now if that doesn’t seem insane to you….
Particularly with everything still in various states of shut down and small businesses decimated across the World…
Lol, let’s just stop and be honest, it DOES and SHOULD seem insane to you.
In essence, the GOVERNMENT has put a back-stop on the markets.
They have declared war on COVID, and all they have to do to fight this war is KEEP PRINTING MONEY.
Because yes, as you will see if you subscribe to this letter, that $3,000,000,000,000 in stimulus?
Came from NO WHERE.
It was MAGICALLY CREATED out of THIN AIR.
Now I don’t want to get into all the implications of that, yet, (tune in tomorrow) but I do want you to just STEW on that information today as you watch all the talking heads talk about “Uncertainties in the market”.
They will go on and on, yadda yadda yadda.
And yes, we may have a small correction.
But the news they won’t talk about nearly as much is this.
Just yesterday, the House passed ANOTHER $2.2 TRILLION dollar stimulus deal.
It has to go through the senate still, and I’m guessing it will end up somewhere around $1.8 Trillion when all said and done.
But this is good theatre, folks.
Let’s see who the REAL President of the US is….
Is it the guy in the white house with Covid?
Or is it the people with access to the PRINTING PRESS, the ones who can create dollars out of thin air, who have the REAL power?
Let’s watch it play out in real time…
Stay safe out there!
See you subscribers tomorrow!
Love always.
Kale
p.s. if you enjoyed this free edition of the Kale Letter, you can always subscribe and get one of these 5x a week (sometimes more for founding members :)
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