That Worrisome Week Just Passed

We labeled last week "worrisome." It had the potential to bring us trouble in markets as well as social unrest. As it turned out, markets were pretty much flat. As for social unrest, well, the Floyd jury voted "guilty" and...well, what did happen?

For one thing, there were not massive riots as were triggered when the man died last summer. So far so good. But other incidents involving the police were hyped by the media. And there were some demonstrations, some rather nasty. No burning and looting that I'm aware of. But, then again, you never know. Media picks and chooses what it reports. And these days, burning and looting that doesn't serve their purpose doesn't get reported.

What about this week? Do we just crawl back under our rocks and sleep it off? Heck, a stretch of quiet, peaceful days wouldn't be unwelcome. But as for crawling under a rock, that's for those who think the worst passed. It didn't.

First of all, markets remain elevated, as they were before last week began. And while nothing has triggered a storm so far, I wouldn't take down the storm shutters yet. It'll come in due time. What we do between now and then remains something to consider. We're considering some additional hedging for our portfolios. What about you? Buy and hold? Whatever you decide, put some thought into it now, before the winds pick up, the trees start coming down, and the debris starts flying. (Yeah, it's an image of a hurricane. But pick whatever you want: Tsunami? Earthquake? Wildfire?)

What about social unrest? I don't know what you think, but it seems to me we're in one of those cycles where it's here and isn't going to disappear. Think of the 1960s/1970s. Things began to unravel in the late 60s. The 70s continued the unraveling. That left us with the 80s, where here in New York, just walking about was an adventure - never mind taking the subway.

Well, the subway thing is back, despite the ridiculous claim by NYPD brass that crime is at record lows in the subway. Of course it is: Ridership remains down something like 70%. Just ask any New Yorker. Many have decided to stay away from the the subways. Can you blame them?

Then there's crime in general. In many cities - count New York in - it was rising before the C-Virus Mess took over. Now that things are purportedly loosening up and "re-opening," all that has been forgotten. New York will be spending $30 million to attract domestic tourists, claiming the city's safer than ever, and that it will suddenly spring to life starting in the summer. Well, things may open up, but it's apparently now September that live shows will re-appear. We've seen some live music, but it's all with social distancing and masks, etc. Is that any way to "enjoy" a live performance? As for safe, I do hope any tourists who take the bait exercise discretion - to put it mildly. (Our Mayor has declared that every borough of the City - Manhattan, Queens, Brooklyn, Bronx, Staten Island - are perfectly safe. He's been rumored to be a pot-smoker. Is that why he made such a ridiculous claim?)

Back to social unrest. Once it begins to pick up momentum - and it already has - it doesn't just disappear. It goes on for years. Segments of the population catch the story put forth by the leaders of the unrest who have an agenda that typically is driven by some toxic combination of Marxist/Communist ideology along with the quest for power - i.e., overthrowing the government and taking control. They use everyone else for their ends. Those used become, frankly, useful tools (idiots?) for the manipulators. And until those manipulators are confronted and their revolutionary plans opposed effectively, the trouble will continue - likely for years.

All this doesn't mean the coming week will be worrisome. Then again...