We went down to the town of Cafayate last week from the family ranch: a three-hour drive, mostly over unpaved…
Dow down 98. Gold down $8 an ounce. No biggie. “Three more cows died,” Jorge, our Argentine ranch manager, reported yesterday. We had reacted as fast as we could. Still, the disease – whatever it is – moved faster. Jorge and his crew of five gauchos worked for three days – including a Sunday and a national holiday – almost without rest. From first light ‘til after dark they rounded up the cattle and ran them through the stocks.It was hard work. But there were no complaints. They all knew it had to be done.
The Dow rose 91 points yesterday. Gold was flat – after getting battered last week. Today, we go even farther into the unknown… beyond eventually and past sooner or later… to what happens next. Specifically, we don’t think central bankers are going to take the end of the world lying down. They’ve got tricks up their sleeves. These are not new tricks. They’ve been used many times in many different forms. But they’ve never been used on the scale we now foresee.
Dow down hard – 231 points. Gold flat. What’s behind the big drop in equities? Our colleague Chris Hunter reckons it’s the two “C”s – China and Crimea. These two hotspots are giving investors the jitters. Meanwhile, our friends over at Agora Financial gave us a fright. They pointed to an article in the Wall Street Journal: “Nation’s Power Grid Vulnerable to Sabotage.” A few low-tech saboteurs could put the nation in the dark for 18 months, says the WSJ.
In the spring of 1982 we were glued to the TV. Not to reruns of “Hogan’s Heroes” or “M*A*S*H,” but to a real, live war. Argentine dictator General Leopoldo Galtieri believed Argentines needed a little patriotic diversion from the grim stories of murder, mayhem and economic mismanagement that plagued his leadership. Britain had ruled the Falkland Islands (Spanish: Islas Malvinas) since 1883. But undefended… and perhaps not worth defending… Argentina had been claiming sovereignty over the tiny islands ever since the days of Juan Perón.
Yesterday, we reported on the latest money woes in Argentina. Today, we turn back to the US. The Dow caught a bid yesterday, with a 90-point rise, bringing it to rest at 15,928. That’s 15,017 points higher than the low it hit in 1981, just after Ronald Reagan was elected. In 1982, US stocks began a sustained and spectacular rise. Over a 33-year period, the market value of America’s most important corporations rose nearly sixteen-fold. But wait, did we say “value?” We meant price. Prices are notations, bearing relative information.