April 1st Market Analysis; Learn to make money under Socialism, don’t be its victim

I have uploaded a new podcast for April 1, 2018. Click here to go to the show archives page to listen or you can listen on the link below.  I have included links to relevant articles and media on the Show Archives page.  The latest show is on the top of the page.

-Socialism is making housing less affordable. It’s structural and permanent, regardless of what happens to house prices and mortgage rates.
-Social programs are popular with the masses, because the true costs are never quantified. The true costs result in lower standards of living via higher housing, medical, and education costs. The costs of daily life become oppressive to the average person, but he or she never can make the connection between government social spending and his or her busted out economic prospects.
-Open borders is great for real estate investors as it drives rents higher. Opens borders is a necessity for socialism to work, as socialism drive child costs higher. This results in lower native birth rates and the need to lower the wage base by immigration.
-Socialism requires financial and monetary engineering. Learn to make money in this environment. We need to complain less and invest more.
-10 and 30 year USTs showing signs of life. US yield curve compressing. There is still room to go and the 2-years can still rise against the longer end. 10yr/2yr spread is 47 bps, the lowest in 10 years.
-If we go back to the late ’70s the 10yr/2yr spread often becomes inverted. Going back 50 years, it is always negative preceding a recession.
-Fading long yields telling me that economic softness in future is probable.
-US dollar weakness a sign of the unwinding Fed balance sheet.
-TNX spec shorts remain near historic highs. Higher 10-year prices?
-Gold can’t get above 1362 close. Gold in isolation looks good and 1300 is new 1270. Forming an ascending triangle, but spec longs remain elevated and platinum/silver/miner prices holding gold back.
-Gold/platinum ratio still near historic highs. Needs to drop below 1.25 for gold to rally. Historic average is .85
-Real estate looks OK here. 30-year mortgage of 4.5% is fine if there are no spikes. Long end of yield supporting low rates.
-Total Fed assets fell by $9 bil last week. The unwind continues.
-Stocks struggle as a result. S&P and Dow Support levels discussed.
-Cryptocurrency summary and bitcoin analysis.
-Rental properties are still a good bet if they have good cap rates and IRRs with respect to historic norms.