Current Outlook

"Sell in May & Go Away ..."

Old timers in the market had this saying as they headed to the Hampton's or the Pocono's for the summer.

Despite Moody's slow realization that the rating of U.S. government bonds should no longer be of "AAA" quality, politicians in the House of Representives have moved forward with a "BIG BEAUTIFUL BILL"  that fails to reduce spending and/or the national deficit.

Seems members of both parties continue to have their head in the sand and can not give up the federal gravy train via NGO's.

Still  the federal cash deficit is reported as only $35 trillion while the GAAP deficit is over $250 trillion. 

With the U.S. GDP only around $24 trillion, something is going to give shortly.

Watch those federal interest rates and bond sales closely ...they are probably more indicative of what is ahead than the stock market.

The savings already discovered by DOGE is in the billions of dollars. As the cloak of secrecy is unmasked, voters of both parties are simply disgusted with the Uniparty.

Not surprisingly, the Democratic opposition is launching more lawfare as its funding apparatus using NGO's has been exposed.

So far this year, Gold has outperformed the market and London's physical  gold  reserves are dwindling back to the U.S.  Will Musk finally audit the Ft. Knox reserves?

Do not be surprised if the NASDAQ falls through 8,000, the SPX to 2,500 and the DJIA sees the 25,000 level.

Remember -- "Only purchasing power counts!"

Remember to ... "Keep It Safe, Simple and Stay Focused!" going forward.

Fred Richards
May 31, 2025