Mailbag: Riots, Nailing Interest Rates and Hemp’s Floodgates

Oh boy… Who put the matches in the hands of the kids in Paris?!

They are burnin’ the place down.

We’re not surprised by the anger in Paris. And we certainly won’t be surprised when the same antics lazily swim across the Atlantic and show up in the streets of Washington, Los Angeles and, of course, Seattle.

We get it. The “Yellow Vests” are angry because of rising taxes and France’s high cost of living.

But last we checked our actuary tables… lighting cars on fire and destroying storefronts is hell on insurance premiums.

As usual, the mobs are going about things the wrong way.

Instead of doing the right thing, they’re doing the easy thing.

We could write all day about our thoughts and what’s gone wrong, but we’ve got things to do and hope you do, too.

Instead, we’ll share some of the oh-so-ignorant graffiti that now graces Paris’ beautiful central streets.

“There’s enough money in the coffers of businessmen. Share the riches!”

That’s right… the rich have what they need. Give us the rest.

When a reader wrote us and asked our thoughts on the riot, he likely wasn’t surprised to see our answer was short.

“This is what happens when you mess with Liberty,” we wrote. “Socialism comes at a great cost.”

The folks in France are learning the hard way.

Nailed It

Elsewhere in the mailbag…

Andy, nice call with the tariff talks and interest rate prediction. You went against the grain and were spot on. Since you’re on a roll, what do you think is next? Reader A.M.

Thanks… but to be honest, we’re not sure how the mainstream press and its army of talking heads could have gotten everything so wrong over the last two weeks. Unless they predicted unicorns and elephants to fall from the sky, we don’t think their “analysis” could have been any further from reality.

It should have been obvious.

It was to us.

For weeks now, we’ve been telling Manward Letter subscribers to prepare for plunging interest rates.

Nobody else was calling for it. In fact, just as we said to expect the 10-year to hit 3%, the folks on CNBC called for 4%.

Guess who was right… the benchmark dipped below 3% yesterday.

It’s all thanks to a complex trend we’ve written a lot about. Our nation and its economy are flat-out addicted to low rates and easy money. Take ‘em away… and watch the bears get fat.

Jay Powell (the head of the Fed) had no choice but to turn dovish last week. It was the only way he could keep stocks from plunging any further.

Expect more caving from the nation’s monetary maestros.

As for the tariffs, the cards fell just as we expected.

The moves made last week prior to the G-20 were “classic Trump,” we told Manward Letter readers. He was playing hardball and making investors nervous as a ploy to get the power on his side.

It worked. At least for now.

Just as we predicted, stocks surged on the news.

As for what’s next… that’s easy.

Rates will rise again (but not as far as recent highs), and investors will soon grow nervous as the early hoopla of the news from the G-20 wanes.

In other words, if you’re looking to do some end-of-year portfolio cleaning… sell into this news.

And – keep reading – buy hemp.

Rejoice! Congress is about to get something done. It sounds like the 2018 Farm Bill will get passed in the next two weeks. But I’m not seeing anybody talking about it or what it does for hemp. What’s happening? Reader L.S.

Ah, the Farm Bill. We’ve scribed about the nation’s confused relationship with this atrocity of economic and legal manipulation. The idea behind the bill is sound… but its implementation and its massive handouts should have all Americans embarrassed to show their face in public.

That said, our old pal Mitch McConnell proves that pork barrel spending is alive and well. His constituents in Kentucky are hurting from the decline in tobacco sales… so the senator took it upon himself to rewrite nearly a century’s worth of ludicrous laws.

We applaud him and every other lawmaker who had the guts to vote to legalize hemp. But this wrong should have been righted decades ago.

Either way, L.S. is right.

The Farm Bill is about to finally get the signatures it needs. And when it does, hemp (the nonpsychoactive variety of cannabis) will be legal across the land.

It opens the door to massive (we can’t overstate the idea) moneymaking potential.

Right now, the nation’s hemp industry is worth just $820 million. But in less than four years, just the medicinal side of the crop is expected to grow to more than $22 billion.

It’s a game changer.

And the news comes just in time.

Later today, Manward Letter subscribers will learn the very best way to play the opportunity.

This is big.

Congress finally did the right thing… and it’s about to pay off.

I enjoy your work. I wonder if you’ve read Growth of the Soil by Norwegian writer Knut Hamsun… learned of it from a Pat Conroy book. You and the book remind me of each other a little. Reader M.P.

Thanks for the recommendation, M.P.

We’ve heard many good things about this Nobel Prize-winning book. But we admit, we haven’t read it… yet.

That’s about to change, though. We just borrowed a digital copy from our local library via Hoopla.

Any book that focuses on a man who’s “conflicted” by modernity is a book that will surely make us smile.

Keep your thoughts, comments, questions… and book recommendations coming. You can email us at

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