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Registered Investment Adviser Caleb Lawrence

Despite some notable volatility over the weekend with crypto currencies and another “mystery” disappearance of 280 million in Ethereum, another lurch in the Brexit process towards a hard and disorderly exit, the major averages recovered their opening losses to enter the final hour with fractional gains.

There is little economic data today. A new study by the Institute for Policy Studies noted that one in five or 20% of American households have negative or zero net worth due to debts exceeding assets. Given record levels of student, auto, and credit card debt I can’t say as I’m surprised. It does however cast considerable doubt over the economy is great 4.1% unemployment rate theme. While highlighting the decimation of the middle class that has been going on for the last 45 odd years.

The wild gyrations in the share prices of crypto currencies like Bitcoin of late after a 3rd 29% or better decline in just the last 6-months underscores the question is this really a currency substitute or some insanely volatile speculative asset? Regardless like paper currencies it has no real backing and its value is essentially what people think it is worth, hence the wild gyrations. All of which reminds me of the Dot-Bomb days when companies reached astronomical valuations without profits until one day the fundamentals came back to haunt them and they disappeared by the thousands leaving piles of worthless paper in their wake.


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