The word Genesis derives from Ancient Greek and is defined as the “origin, source, beginning, nativity, generation, production, creation”. The bible refers to it as: “The point at which something comes into being, the creation”.
What better word describes what the world is going through right now than that? It is essentially the rebirth of our nation and economy; the world over in fact. Therefore, I’m replacing my earlier title phrase of the Great Reset with “The Genesis”.
When I think of the word, I think of the Star Trek movie “The Wrath of Khan” where they fought over the Genesis Device. This device could create literally an entire planet from the ground up. For you Trekkies, you will remember that it’s development was completed by a team of scientists led by Carol Marcus and her son, David Marcus, in 2285 on the Spacelab Regula I in the Mutara sector.
This experiment has never been done before where we tear the economy down to the ground, and rebuild it from the ashes. On the surface, it appears that all you have to do is invent money, lots and lots of it, and throw it at the problem. So far we have commitments of fiscal and monetary stimulus in the neighborhood of $7.2 trillion. It sounds crazy and it feels like “funny money”, but its implication cannot be taken lightly. The markets like nothing more than stimulus.
I can’t help but wonder that if we can print a few trillion bucks at the drop of a hat, why don’t we print a few more and cure Cancer…but that’s a rant for another day.
How are we going to pay for it? Well the powers tell us not to worry about that now, so I won’t. However, with the whole world in the same boat, it wouldn’t shock me if we all figured out a form of loan forgiveness. Maybe we all get together at the U.N. and decide to lop off a few decimal points (maybe I just planted a seed).
It does appear that that investors are looking past the crisis and on to recovery. With the economy literally shut down, the upcoming horrific economic data should not come as a surprise; no matter how bad it is.
With virus testing finally catching up and several promising vaccines, disciplined investors will be well rewarded. The recovery is happening faster than most expected, and as we pick up steam, I see new highs on the horizon.
That does not mean that we should throw caution to the wind. We are likely going to get a pullback at some point. It could be very short and shallow or a little deeper if we get some bad news. However, with all the government stimulus, I do not expect a retest of the March 23rd lows. That next rally will likely be a long sustainable march higher. Although, who knows, the market has a way of confounding the largest majority so maybe we just charge higher from here.
I am very optimistic, but still moderately cautious. That’s my job, pray for peace but be prepared for war.
For now, enjoy the relative peace, tranquility and slightly less edgy atmosphere of the country (we may never see this again). Stay safe, healthy and do your best to help those around you. We really are all in this together and our collective unity during this crisis is inspiring.
Enjoy The Genesis of America. It is history in the making.
If you need me for any reason, do not hesitate to call. I am still at the office, with a skeleton staff, and we are all working tirelessly to guide and protect you during this most difficult time.
Thank you for your trust, confidence, and friendship.
“Invest for need, not for greed!”