France Folds
Macron publicly snubs the U.S. returning from a trip to China.
You've got to know when to hold 'em, know when to fold 'em
Know when to walk away, and know when to run
— Kenny Rogers, The Gambler
Over the last few years, I’ve been of the opinion that United States policy, both foreign and domestic, has resembled arrogance more than humility.
The latest example of this, noted by investors I respect like Luke Gromen, Andy Schectman and Lawrence Lepard, then haplessly echoed by me, was our attempt to try and control the outcome of the Russia/Ukraine war by seizing $630 billion in Russia’s dollar reserves. This effectively put the rest of the world “on notice” that we can, and will, weaponize the dollar should anyone make decisions we don’t approve of.
This hubris doesn’t just show up in our foreign policy, it shows up in our monetary policy - namely, our country’s unwavering belief that the U.S. dollar is indestructible and will always be global reserve currency. As I wrote last week, our inability to cut spending, under-consume and otherwise act conservatively from a fiscal and monetary standpoint, in my opinion, remains of the country’s largest Achilles’ Heels.
Naturally, as a patriot who loves the United States and is grateful for the opportunities that it has afforded me and my family, I wish nothing more than for our leaders and those in power to understand this better. While corrective actions may be uncomfortable in the short-term, the longer we remain on the path we are on now, the worse things can get for the long-term.
It was this outlook on the country that influenced my investing stance coming into 2023. As my readers know, I have been predicting geopolitical unrest and global economic unrest, in addition to domestic economic turmoil due to rate hikes, for the last 12 to 18 months. This is why I chose the stocks and sectors to watch this year that I did: