Dear Reader,
Just a quick update before the Labor Day weekend.
You'll also get our regular Sunday update, and next week, we'll resume our normal daily publishing schedule.
Needless to say, it has been an exciting week and here's what you need to consider going into the long weekend and next week.
France says that an attack on Syria could come as early as Wednesday and Iran says it will attack Israel if the U.S. attacks Syria.
Secretary of State John Kerry said today that the evidence points to use of chemical weapons in Syria and that more than 1400 people were killed in an August 21st attack.
It seems clear that the U.S. and France, and perhaps Britain after another Parliamentary vote next Thursday, are moving towards some sort of military action that could come as early as next week. All of this sabre rattling will likely put global markets in further disarray in the days ahead.
Wall Street Sector Selector continues in "red flag" status, expecting lower equity prices ahead and we continue to maintain our positions in gold and inverse ETFs.
What happens next will depend on how long the crisis continues and how wide it might spread. Generally, higher oil prices and higher gold prices, along with volatility in equity and bond prices, can be expected, at least over the short term.
Longer run, higher oil prices on a sustained basis would damage the already weak economic conditions in Europe and emerging markets. And, of course, the crisis in Syria adds further uncertainty to the Fed's plan for tapering its quantitative easing program in mid-September, as the Fed typically responds to global crisis with more, not less, liquidity.
Danger and opportunity always arrive hand in hand, and this time will likely be no different. We're living in historic times and it's an honor to be traveling this road together with you.
Best wishes to you and your family for a great Labor Day weekend and we'll talk again Sunday.
August 30, 2013 
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