I have always found it amusing that the Wall Street Wizards tout their remarkable knowledge, experience, and past results while simultaneously issuing the prescribed Securities and Exchange Commission warning, “past performance does not guarantee future returns.”

So let us consider the implications of a Federal Reserve hike in the interest rates to curtail growing inflation on what are euphemistically known in the securities trade as “story stocks.” Securities whose valuation is divorced from their underlying assets, cash flow, or profits, and are based on the belief that some factor like innovative technology, first-mover advantage, or widespread favorable media coverage will produce future profits that will outperform the market. Relying on the “greater fool theory,” which posits that there will always be someone that will buy out your position at a higher price. Overlooking, of course, that in difficult times, a stock is only worth what someone else will pay.

If you work for an organization whose valuation is based on what venture capitalists invest in your restricted securities, show little or no profits, have few tangible assets other than “intellectual property,” have impaired cash flow, or depend on interest rates, government subsidies, or government contracts – you may wish to cut back on your personal expenses, create an “emergency fund,” and consider developing multiple independent revenue streams.

Beware of storytellers. Remember the apocryphal story about a man who, upon being shown the beautiful yachts of Wall Street bankers and brokers lying at anchor nearby, naively asked, “where are the customer’s yachts?” A reminder that Wall Street denizens are brokers who profit from their commissions or machinations with your securities -- no matter if you win, lose, or break even.

Commonsense...

Anyone who has commonsense can see that the Sun does not always shine, the wind does not always blow, and there is not enough battery capacity to serve our "base energy load" to keep America moving without fossil fuels or other sustainable energy sources like nuclear energy. Likewise, electric vehicles whose batteries do not perform well in hot or cold environments or require hours to charge to reach 400-mile capacity are not consistently viable for commercial use. And, of course, you do not kill your livelihood to advance a political agenda based on a power grab or other ulterior motive. Commonsense!  

Bottom line…

We are in perilous times where wealthy or connected elites are isolated from the consequences of their actions, including the government bureaucracy, which will be fed by taxpayer dollars regardless of what is happening in the private sector.

You need to take care of yourself and your family – not worry about events you have little or no control over.

We are so screwed when the government continues to use fear and panic to advance their agenda while distracting you from the commonsense understanding that would have you shouting “NO!” at their ridiculous or corrupt activities.

-- steve