Handwriting on the Wall

Your opinions on the handwriting on the wall for 2019:

“The big sign on the wall says ‘Trump is Going to Jail’, not ‘Buy Gold’.”

This reader disagrees:

“No counterparty risks with gold/silver. Buy as insurance not investment. Less risk
than on deposit at bank.

“Runaway money printing will have to cause devaluation of greenback. Eventually chickens come home to roost.”

Along those lines, another contributor says this…

“I understand after 9 years of money ‘printing’ QT and possibly continuously rising (short) interest rates will put a brake on investing/money spending.

“Government institutions and large corporations that depend on empty currency for their survival need buckets of ‘money’ just to exist.

“However, real companies that’ll have a way to improve society, be it through new inventions or getting things done better, in my opinion, do not (or less so) depend on ‘funny money’.

“Would you think such companies would continue to be hit by a punishing market for an overall liquidity event? At the moment, is such a ‘problem’ more imaginary than real?”

We want to hear your take on the reader’s questions.

Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.

Your Rundown for Monday, January 7, 2018:

Up in Smoke? 

U.S. tobacco giant Altria (MO) — maker of cigarettes, cigars, etc. — has been downgraded by some analysts from “outperform” to “perform”.

The reason? Altria’s cigarette volumes are expected to decline by a 7.3% annual rate over the next five years compared to its decline of 3.1% for the last five.

Altria, once considered a S&P 500 mainstay, has dropped off recently:

chart

To offset the decline, Altria’s invested in e-cig maker Juul in December, taking a 35% stake in the company; to further diversify, Altria invested $1.8 billion (45% ownership) in Canadian cannabis company Cronos.

Thing is Juul is under fire from the FDA for marketing to minors. (Did they learn nothing from Joe Camel?) Not only that, Cronos is just the fourth-largest marijuana company and Altria bought its share of the company at a steep premium.

Aside from moral qualms of investing in a vice stock, the fate of Altria is a coin toss right now.

If you’re looking to invest in a defensive, high-yeild dividend stock, Procter & Gamble’s a better bet. Talk about diverse, PG’s brands include Crest, Tide and Metamucil. And most everyone can get behind fiber….

Market Rundown for Mon. January 7, 2018

S&P 500 futures are up 2 points to 2,533.98.

Oil is up $1.31 to $49.24 for a barrel of West Texas crude.

Gold is up $7 to $1,292.70.

Bitcoin’s down $36 to $4,023.97.

Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.

Have a good day. We’ll talk tomorrow

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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