You are a free subscriber to Me and the Money Printer. To upgrade to paid and receive the daily Capital Wave Report - which features our Red-Green market signals, subscribe here. So, America is a Stupid Hedge Fund Now?First Intel... next the defense sector... what is happening...
Dear Fellow Traveler: There’s now a movement for the United States government to start taking stakes in defense contractors. Let that sink in. Commerce Secretary Howard Lutnick appeared on CNBC, casually discussing whether the government should own Lockheed Martin (LMT). "They make 97% of their revenue from us anyway," he says. That’s not the argument that he thinks it is… I guess we can now just print money and then buy stocks with it… Intel was the test case. It’s an $11 billion "investment" that cost "ZERO" according to officials because they funded it with CHIPS Act money that was already allocated. That's not investing. Now they want Lockheed. Then Raytheon. Then Boeing. Pretty soon, the U.S. government will own a massive amount of the defense industrial base. We've gone from military-industrial complex to military-industrial monopoly. The logic is breathtaking: We pay them anyway, so we might as well own them… By that logic, the government should own Walmart since food stamps fund its revenue. The U.S. should own pharma companies since Medicare pays them. Just own everything. This is how everything falls apart… Not with revolution, but with the government becoming the ultimate private equity firm. Print money, buy companies, declare victory. Lockheed stock up 1.5% on the news. Of course it is. When the government becomes your biggest shareholder AND your only customer, that's not a company anymore. It's a department. We're crossing the Rubicon from crony capitalism to “state capitalism.” The government is picking winners by literally buying them. What could possibly go wrong? Especially when the political pendulum swings back… and more liberal presidents want to start taking stakes in whatever they prioritize politically… This is a foolish precedent… Stay positive, Garrett Baldwin About Me and the Money Printer Me and the Money Printer is a daily publication covering the financial markets through three critical equations. We track liquidity (money in the financial system), momentum (where money is moving in the system), and insider buying (where Smart Money at companies is moving their money). Combining these elements with a deep understanding of central banking and how the global system works has allowed us to navigate financial cycles and boost our probability of success as investors and traders. This insight is based on roughly 17 years of intensive academic work at four universities, extensive collaboration with market experts, and the joy of trial and error in research. You can take a free look at our worldview and thesis right here. Disclaimer Nothing in this email should be considered personalized financial advice. While we may answer your general customer questions, we are not licensed under securities laws to guide your investment situation. Do not consider any communication between you and Florida Republic employees as financial advice. The communication in this letter is for information and educational purposes unless otherwise strictly worded as a recommendation. Model portfolios are tracked to showcase a variety of academic, fundamental, and technical tools, and insight is provided to help readers gain knowledge and experience. Readers should not trade if they cannot handle a loss and should not trade more than they can afford to lose. There are large amounts of risk in the equity markets. Consider consulting with a professional before making decisions with your money.
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