Week 43-44 update

Thoughts on BRICS, palladium, Argentina, and the Middle East

Traditions are to be followed. Military operations, major economic news, and assassination attempts are kept for the weekends, making Monday market sessions exciting.

Saturday morning, Israel attacked Iran. Besides that, last week, the BRICS summit was held in Kazan, Russia, and the US requested to sanction the Russian palladium. Argentinean equities keep smashing the charts on the other side of the world.

Today’s email is an eclectic mix of BRICS, palladium, Argentina, and the Middle East. I conclusion, I discuss portfolio changes.

BRICS currency

Let’s start with discussing the BRICS currency and its potential to dethrone the US dollar. At least for now, the dollar will reign supreme. The reasons are widely known yet not widely discussed:

• The US has the deepest financial system

• The US has the largest blue water navy

• The US and its allies own most of the satellites and underwater cables required for global financial systems.

This is not to say the US dollar is invincible, nor will it remain the reserve currency for eternity. My point is that the change in reserve currency will take much longer than the pundits expect.