In this issue:Imaginary MeetingElections: Donald TrumpEconomy: The Markets

IMAGINARY MEETING WITH TRUMP AND PUTIN

Wow! Wouldn’t that be something? That is definitely something we would pay for. In fact, we would want front row seats. It would be, at least according to us, an epic confrontation, in which the sparks would fly.

The truth of the matter is that there is a chance that they would actually like each other. After all, they have a lot in common. First of all let’s talk about their wealth. Trump claims to have assets approaching 9 billion dollars. Of course Forbes may dispute this figure but they must admit that he does have assets in the five billion dollar range. It doesn’t even come close to what Putin has. As recently as the end of last year, Forbes estimated that Putin’s fortune was somewhere in the fifty to seventy billion dollar range. This is quite an accomplishment considering the fact that he has an official salary of somewhat under two hundred thousand dollars. We have to figure that his net worth is considerably lower now when we factor in his crashing currency and the falling price of oil. But still we have to assume that he has at least half of what he used to. Therefore when we consider how much Trump admires wealth, he would certainly respect the fortune that our

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WEEKLY REPORTJuly 13 - July 20 ⌘! Issue 28 / Volume 15

that our dear Mr. Putin has accumulated.Political correctness would be a key issue. Both of them have no regards for this notion and share similar stances. Putin is an admitted homophobic racist who has been known to call Obama the ‘chocolate king’. Trump, on the other hand, has no qualms when it comes to ranting and raving and his stances on migration are legendary. Therefore, they would certainly have common ground and would probably see eye to eye. Neither care what others think of them and are proud to be swirled in controversy. In our opinion, Trump has overstepped his bounds and will pay the price both personally and politically. With Putin it is unlikely that this will be the case. He has a lot more leeway in which to work and he would not be judged in the same way by his people. Trump would probably admire Putin’s freedom and the relaxed standards of the Russian people. Putin would respect Trump’s willingness to be politically incorrect and go against the trends of the ‘people’.

It would be a give and take and, comparably, a lovefest between these two. They are both ruthless and dominating and used to getting their ways. All in all, this ‘blind date’ would be a success and they would be able to work together and forge a relationship that Obama and Putin could never have. Do you agree?

FOSTER ELLIOT WEEKLY

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WHAT A JERK

This time, we are referring to the now legendary Mr. Putin. Did you hear what this idiot did over the July 4th weekend? He had the audacity to buzz U.S. airspace in two locations, those being the coast of California and Alaska.

What is he thinking? What is he trying to accomplish and to what purpose? Is he insane? Honestly, we have no idea. But, at the same time, it makes us very nervous. We know what he might be capable of and we know about his ego and we also know that he likes to make his points. But this goes beyond reason and we have to question his sanity.

For the last two or three years, we have once again become immersed in the newest version of the Cold War. And the more it continues, the more it becomes extremely dangerous for everybody. Putin has a point to prove and he wants everyone to know that he has military capability. We are well aware of it and know that, if push comes to shove, he would not hesitate to use his force. He has absolutely no respect for Obama and doesn’t believe that he would stand up to him. This has proven to be the case but, at the same time, we don’t think that Putin should push him to the brink. Because you never know and it would be foolish to awaken a sleeping giant.

In our opinion, we can only hope for calmer heads to prevail. The last thing we want to see is some kind of macho confrontation between these two. It is unncessary and could only lead to further escalations of tension between the two superpowers.

AGAIN GREECE

Greece remains in the news and is impossible to ignore. We wish it were not so but we are forced to deal with the issue ad nauseam. The results of the referendum are well documented and we have to say that we were not at all surprised. If you were Greek, wouldn’t you have done the same? There have been so many deadlines and ultimatums that we would have thought it would have all been resolved many months ago. Obviously that did not turn out to be the case and the negotiations continue. Shockingly enough, in spite of all the denials, the Greeks apparently want an additional fifty three billion euros in funding. We can only imagine the skepticism of Merkel and company. And the promises made be the Greeks have to be certainly taken with a grain of salt as well. Would you trust them to stick to the terms?Whatever your answer to this question is, the bottom line is that the entire issue can’t be pushed to the back burner. We have not hidden our feelings all along. We have not been fans of ther Greeks nor have we been fans of the way they have handled themselves. Some of their justification was downright incomprehensible. We can certainly understand the frustration that austerity brings and the mounting anger that becomes the end result. And their wishy-washy behavior and their attempts at rapprochement with Putin, makes them an iffy partner at best. However, all that being said, we assume that they will remain in our future. For better or for worst we are stuck with each other. For these reasons, we assume that a deal will be struck. It is likely that nobody will be happy but we can only hope that there is some kind of result in the next week or two.

FOSTER ELLIOT WEEKLY

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THE MARKETS

The markets have been understandably nervous. This was to be expected and therefore was factored in. In fact, we are somewhat surprised how strong the markets have been. If it were not for the Greek situation, we could easily imagine that the Dow would be comfortably above 18000. The fact that it is basically even on the year, is further proof of the overall strength.

As for individual stocks, we would like to ask whether or not you are still holding FACEBOOK? Have you seen what it has done lately? It continues to rise and has basically quadrupled over the last two years. As for Apple, it has fallen off its lows but is holding strong. Microsoft is also holding and we are confident that it will soon have its day. We are holding it and are not even thinking of selling at this point. At the point where it passes 50, we plan to start selling options.Have you noticed the price of crude oil? It has fallen so far and so fast that it continues to confound us. Over the last month it has fallen almost fifteen percent. Can you imagine the pain Putin and the Russians are feeling? Being undiversified is dangerous. Wouldn’t you agree? And now for the painful topic of Gold. We don’t want to dwell on it because we have been here time and time again. What is going on? Why hasn’t it moved? For the life of us, we can’t understand this. Forget the experts because they certainly aren’t shedding light on this

mystery. We would have expected it to be in the 1300USD range by now and yet it is mired at slightly above 1160USD. We are not selling. We have no intention of selling and if it drops another ten dollars, we plan to buy another chunk. Do what you feel is best for you but we are still bullish.

CONCLUSIONS FOR THE WEEK

Trump unfortunately continues to dominate the news. How long can this last? We hope not too long but, at the same time, he is a fascinating subject and until he drops out of the race, he will be in our thoughts. As for Greece, we can’t promise to have closure by next week but we can only hope. It has been a long time and something has to give either way. As for next week, we will remain flexible and hope for something new and interesting to report. Meanwhile we now want to take the time to wish you all a great week and, more importantly, we hope that you make lots and lots of money! Have a great week!