bubble

With volatility and uncertainty still riding high as a result of the Trump administration’s ongoing trade war, Porter is turning the Daily Journal over to Erez Kalir today. Though he leads Porter & Co.’s Biotech Frontiers, Erez has vast knowledge of the broader markets and years of experience with some of the best minds in finance… and he’s seeing a dramatic change in the U.S. Treasury market that could have profound implications for investors.

Given the unprecedented scope of the recent bull market, it could easily take a decade or more for our markets to reach bottom. It’s true. These cycles take a long, long time to sort out.

We are in the early stages of a massive financial reordering that will end the U.S. dollar’s status as the world’s only reserve currency. We will see the dollar, the euro, gold, the Chinese yuan, and Bitcoin all compete to be the monetary reserve currency.

The rhetoric accompanying President Trump’s trade policy strikes some of the same notes that accompanied Richard Nixon’s New Economic Policy in the 1970s. And the effects on the stock market and the overall economy are striking similar notes as well.

While the possible collapse of the Treasury-bond market and the end of the global dollar financial system will certainly be catastrophic for many companies, there are still plenty of great businesses that will continue to provide goods and services and earn good profits.