Worldwide markets reacted very negatively last Friday to a leading medical scientist announcement, in South Africa, that another variant of COVID-19 had been identified. Following that announcement, a panicked overreaction occurred in international markets and, as normal, governmental responses also stoked fear and lacked rationality. This severe over-reaction to another announced, but simple, mutation of a known virus is becoming, like smoking, a dirty habit by our elected officials. Folks, viruses mutate all the time. Therefore sometimes when you get your flu shot, which generally covers only two to three strains of common influenza, you still get the flu. Last year we stated that Covid will eventually affect our entire population and, based on the best statistical information we have now, the Covid coronavirus is becoming weaker and weaker, as it continues to mutate in its effects. Our public health authorities, especially Dr. Fauci, are at the same time, becoming increasingly political in their statements. On most of yesterdays Sunday news shows Dr. Fauci called himself the very embodiment of “science” and proclaimed that anyone who opposed his radical public health policies to be an actual opponent of science. Wow!
Folks, if there’s one thing we’ve learned over the last nearly two years, that is that shutdowns of people’s jobs and lives, our children’s schooling, and our ability to independently make our house payments doesn’t work in terms of handling a pandemic. Lockdowns didn’t work. These so-called “solutions” have destroyed many lives and the collateral damage is reflected in our nation’s crime wave, in the epidemic of overdose deaths in our country, in the 50% increase in DUIs nationally, and I could go on -but I’ll stop there.
The market’s over-reaction on Friday created an opportunity that we took advantage of with a new acquisition in John Deere, based on our anticipation that not only will Deere’s core businesses, in construction and agriculture, perform better, driven by high inflation (caused by overstimulation of the economy by the Federal Reserve and federal government) and looming infrastructure stimulus payments. Irrational and emotional market overreactions generally create investment opportunities. We attempt to exploit those opportunities on your behalf. We believe this is a large part of the reason that, according to Morningstar, Inc, Spectrum Financial Alliance clients have approximately doubled Dalbar, Inc.’s reported moderate investment client return over the long term.*
Our bottom line? We believe December and into next year will continue a significant upside bull market based on the overstimulation that continues to occur in our economy. Increasing rates of inflation and interest rates, based on our current portfolio’s construction, should provide you excellent investment returns going forward. Reject the fearmongering and embrace the opportunities! We hope you and your families had a wonderful Thanksgiving holiday. God Bless all of you and God Bless the United States of America.
*Full listing of all disclosures: (bit.ly/3lGX3mM)