Cove Five Capital


Cove Five Capital, LLC is an investment advisory company located in Madison, Wisconsin.  Cove Five Capital specializes in U.S. capital markets.  Whether it's for retirement, income, or growth, Cove Five Capital will create and execute a strategy appropriate for each client.

THE EVERYTHING BUBBLE

 

The United States has reached a point of no return.  Central planners, central bankers, and the proliferation of a planned economy (communism) that make governments more powerful, connected individuals and those that game the government system richer, and the poor more dependent on government welfare, have created an unsustainable economy.  Under the cover of a pandemic, government has embraced communism and we are seeing capitalism destroyed.  This is all facilitated by the Federal Reserve, and they must make the difficult decision to see their debt-based economy fail in order to preserve capitalism, liberty, and the American way of life.


In this environment, the only thing to do is sit back and see how it unfolds.  Major losses are coming to stock markets, bond markets, real estate, and other assets regardless of the Fed's ultimate decision to either continue down this ridiculous road, or stand up and say that's enough.  Despite all of the money printing, continued inflation is unlikely to take hold as overall employment is being permanently reduced, and demand is being unnaturally pulled forward.  This results in a spending cliff as bills eventually come due and interest rates rise from levels only seen because the Fed has been so active in capital markets.  Most of this printed money has simply chased asset prices beyond what has historically been considered wildly overpriced and expensive.


Cash is the most hated asset, so cash is where Cove Five Capital is investing until these bubbles pop.  The Federal Reserve must choose to destroy capitalism, or preserve it by allowing mismanaged businesses and individuals to fail.  Stay tuned...


5/12/2021