Phil Town

A view from Singapore

I spoke yesterday at an investors conference in Singapore. What surprised me a bit here is the fear level. Asians have been on a roll and Singapore, a financial island in a sea of statist thieves, benefits disproportionately. Good times in Asia are very good times in Singapore. So why all the concern. Perhaps they know something we don't. What if the Dragon is slowing down dramatically? What if the PIGS overfeeding (Portugal, Italy, Greece, Spain) has spread to Hungary, France and others? What if the USA is found to be the biggest Hog of all?

 

Who knows, right? But watch out if you are still not in cash. Lots of red arrows out there signaling money sneaking out the door. Is the theater on fire?

 

Well, there is certainly some smoke. Unemployment numbers are not good. Industrial numbers are sliding. In my opinion, US debt is on a track to hit Greek levels in 2 years and is already 50% above what the Eurozone would consider dangerous.

 

Obama wants more unions, more regulators, higher energy prices. He is now criminalizing oil drilling errors and derivative mistakes on Wall Street. He is penalizing small biz job creation with taxes and health care while misleading the public about GM repaying its loan. The stimulus money created zero jobs net but it nationalized a car company to the detriment of its competitors.

 

The world is watching. And it's starting to get scared of what all this means. What does that mean for us? I think it's time for us to tighten our requirements, know your 4Ms and be happy in cash if you're not certain you are buying $10 for $5.

 

Now go play!

- Phil Town

 

STURGIS INVESTORS

About my trip:

I rode a severely modified 2002 Harley softail to Sturgis from LA and then from there over to Jackson Hole where I live. I got too hot, too cold, too dry, too wet and rode too fast too often. It was perfect. Gave me time to smell the sagebrush at 90 mph and see some of the most amazing country at 20 mph. I camped most of the time. Rode solo most of the time just to go where I wanted, when I wanted and as fast or slow as I wanted. Nearly ran out of gas in Wyoming but some folks that run a bar were kind enough to spot me a gallon of gas and a great breakfast burrito. Rode some around Sturgis with a Jackson cop named Sarah and an authentic Jackson Hole cow puncher named Jimmy. Talked investing for hours with a Rapid City school teacher while I watched guys burn their back tires off for no reason whatsoever. There were too many bikes and not enough time to enjoy it all. And now I'm back and thinking about what to tell you guys at the next event where I'm speaking.

Here's what I've been thinking for the last ten days or so:

CLOUD HIDDEN FAR AWAY

Sometimes you just gotta go. 

A shop has been working on my Harley for months and suddenly they called and it was ready.  And a friend called and wanted to meet in Sturgis. And then another friend wanted a ride to Estes Park from LA.  And that was on the way to meet the guys, so why not.  And now I'm in Colorado having just ridden through a beautiful and alien landscape in Escalante, Utah and Capital Reef NP and blasting on up the highway to Sturgis.  If you see me, just  be kind and remember that loud pipes save lives.  And I'll be in touch with every one of you who is doing an analysis shortly after Aug 11! 

Until then, I'm cloud hidden, far away.