First Blog

A big term these days is “Uncertainty.” This means people are not sure of what’s happening. Another big word is “Manipulation.” This means some quantity is altered on command. Adding one and one, we have “Manipulated Uncertainty.” And this means some agency is manipulating the uncertainty.   It applies to trade, to stock prices, to war, to politics, to materialism, and even to climate. Massive gains are available, as are massive losses. Causes: Too much money, too much polarization, too much hate, too much emotion, too much greed, too much profit, too much power, and too darn easy. Think it new?  Nope. Ancient.

Today’ topic. Manipulation by the Chinese. It is well known and proved the Chinese manipulate:  Their currency to avoid the problems of tariffs and other trade matters. Companies to steal their intellectual property. The management of other countries through loans. Internal communications of countries by Huawei.  It is NOT well known the Chinese may be manipulating stock markets by manipulating the trade talks, possibly by short selling. This signals that a few in China are amassing great fortunes as the trade talks lumber along - ineffectually. This implies that while fortunes are being made, there will be no clear resolution or agreements to even the simpler issues of trade. Simple plan for Chinese wealth*: They say “No go,” and the markets tumble. They say “Let’s talk,” and the markets rise. *When you know the when, you stand to make a fortune.  W hile all talk about uncertainty , the point is the Chinese may also manipulate uncertainty.   It

Stock market man.  Suppose I’m worth billions, and have a reputation for picking stock market winners.  What can I do without thinking too much?   A.  I could continue my work, carefully analyzing markets and companies to make my investment decisions.  Maybe too much thinking. B.  I could identify potential sectors or companies, possibly lacking in current market attention, but with some potential.   Then, I could take a huge position with millions upon millions.   The market would take this in advisement and while not really knowing why it is important, would try to pile-on, on the basis of what we’ll call a “position testimonial.”   While pundits would explain why, they and others would also buy, driving up the price even more.   My investment of $300m might increase almost overnight to $350m.  This is what you can do with huge cash reserves.  Change the perception. Change the market. Enhance your investment. This is a totally legal form of market manipulation.  No insid