On June 6, I had a discussion with the Financial Repression Authority host Richard Bonugli and the highly respected Ronni Stoeferle. We covered myriad of global financial and political concerns as we tried to provide the foundation for profitable opportunities via in-depth analysis of these fragilities.
Following the conversation, President Trump validated our discussion about the significance Vladimir Putin’s role in the world. Trump was very clever by “PIVOTING” the G-7 to including Russia once again. In the last three months I have warned that peace in the Middle East can only be found through Russia as Putin’s success in Syria has provided him with the ability to be the main disruptor. The Saudis have begun to lean on Russia to curtail Iranian adventurism while Putin also has the ability to pressure Erdogan in Turkey. Nothing will happen in the Middle East without Putin.
While the U.S. media was castigating Trump for the temerity to raise the Russian card ahead of his arrival at the G-7, all of the pundits forgot to mention that two weeks before Trump’s Russia pivot, German Chancellor Angela Merkel, French President Emmanuel Macron and Japanese Prime Minister Shinzo Abe all made visits to Putin in Moscow. I will continue to pose the question: What Does Putin Want?
In my opinion Putin wants the West to lift its SANCTIONS against Russian businesses and Putin allies. This view has had me starting to look at Russian assets from the ROUBLE to various Russian ETFs. On Friday, I put my money where my analysis is and bought a small position in RSX. It looks terrible on the charts but the Trump pivot has me intrigued. The structures of post-war world are definitely under siege from many directions. But the incendiary language from G-7 is certainly something to consider as we scan the global for investment opportunities. PUTIN, ERDOGAN and Mario DRAGHI have all attained a significant stature.
Arthur, these are my list of the three characters that have the greatest ability to destabilize the world, both in positive and negative outcomes. Pour a libation of choice and enjoy the podcast.