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EDITOR'S CHOICE

Antifa Homebase in Super-Liberal Oregon Created Social Distancing “Safe Spaces” To Get Away From “Whiteness.”

Let’s Talk Liberal

If you thought “we’re all in this together” battling COVID-19, Multnomah County, Ore., is here to set you straight. We’re not “in this together,” it turns out.

The county, of which Leftist Portland is a major part, prides itself on being “woke” and progressive.

In the summers local antifa and other members of the Portland Professional Protester class host social justice summer camps for impressionable children, teaching the fine art of sabotage and protest.

The rest of the year, the local black bloc-attired antifa and friends bash heads on the streets of people they have determined are “racists.”

The area, which is 70% Caucasian, is one of the whiter places in the country.

Dividing people by race and demonizing “whiteness” is one of Portland’s sideshows. It’s taught in at least one of its local colleges.

In a recent publication on “Communities of Color” in Portland, Portland State University researchers determined that Portland’s history of racism causes “horrors” today.

For being so “woke” there sure seems to be a lot of perceived racism there.

And now, in the era of COVID-19, Multnomah County Emergency Operations Equity Office has set up a “grounding space” for minorities to get away from “whiteness.”

The Emergency Operations Center Equity Officer is hosting a grounding space for Black, Indigenous, and People of Color (BIPOC) employees to share, heal, connect, and get grounded in a space that is not dominated by whiteness.

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The Trump

President Donald Trump is reportedly spearheading a new initiative to remove global supply chains from China in response to the Chinese Communist Party’s (CCP) disastrous response to the coronavirus pandemic that originated in their country.

“Economic destruction and the U.S. coronavirus death toll are driving a government-wide push to move U.S. production and supply chain dependency away from China, even if it goes to other more friendly nations instead, current and former senior U.S. administration officials said,” according to Reuters. “The U.S. Commerce Department, State and other agencies are looking for ways to push companies to move both sourcing and manufacturing out of China. Tax incentives and potential re-shoring subsidies are among measures being considered to spur changes, the current and former officials told Reuters.”

Keith Krach, undersecretary for Economic Growth, Energy and the Environment at the State Department, told Reuters that the U.S. has been working on reducing the reliance of U.S. supply chains on China but that in light of recent events the administration is “now turbo-charging that initiative.”

“This moment is a perfect storm; the pandemic has crystallized all the worries that people have had about doing business with China,” a top U.S. official told Reuters. “All the money that people think they made by making deals with China before, now they’ve been eclipsed many fold by the economic damage [from the pandemic].”

In addition to potentially leveraging massive new tariffs against China, Reuters reported that the Trump administration is seeking to create an alliance of “trusted partners” named the “Economic Prosperity Network”.

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Market Minders

The stock market falls when risk rises, but once the market has adjusted to that higher risk, the market’s expected future return improves substantially. That’s the theory. But how do you make this work for your stock investments?

One answer was provided last summer in the prestigious Journal of Financial Economics, in a study by Darien Huang, a former finance professor at Cornell University, and Mete Kilic, a finance professor at UCLA. They found great promise in using the ratio of gold’s price to platinum’s. Increases in that ratio mean that the stock market’s expected future return is higher, and vice versa.

The ratio is a sensitive measure of risk because gold responds to different factors than does platinum. The price of platinum primarily reflects changes in industrial demand, while gold responds both to that as well as investor demand for a safe haven asset. Therefore, as Kilic put it to me in a recent email, the gold-platinum ratio “isolates the component of the gold price that is driven by gold’s role as a safe asset from its pro-cyclical component as a consumption good.”

A rising ratio means investors believe market risk is rising. To compensate, equities must deliver a higher-than-average expected return. Other things being equal, that means the stock market will fall (or rise at a slower rate) but have a higher expected future return.

The professors found that this ratio does a decent job forecasting the market’s return over the subsequent 12 months. That’s good news for the stock market’s prospects over the next year, since — as the accompanying chart shows — the gold-platinum ratio skyrocketed over the two months between late February and late April. According to this econometric model, the increase means that the market’s expected return is more than 12% higher than it was in mid-February.

Overall, the ratio has an enviable track record, according to the researchers. They found that, since 1975, the gold-platinum ratio has had a significantly better track record when predicting the stock market’s subsequent one-year return than nine other well-known indicators that researchers previously found to have predictive ability — such as price/earnings ratio, price/sales ratio, and price/book ratio.

To be sure, the model failed to signal the recent bear market. As you can see from the chart, the ratio did decline from last summer to January, but that decline translated into a reduction in 12-month expected return of just 5% or so.

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How about this?!

Startling footage shows a rare two-headed snake which has baffled wildlife experts.

Incredibly each of the heads compete against each other for food – meaning such serpents do not usually live long.

The distinctive reptile was found in the Dhenkikot forest range of Keonjhar wildlife sanctuary in Odisha, eastern India.

The newborn was discovered by Rakesh Mohalick, and was identified as a Wolf Snake – which is a non-venomous species.

Photographer Rakesh said: “One among the two heads is slightly more developed and both are known to fight over food.”

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