You Know What’s Wrong With Britain – Everything!

This is a rewording of what Audrey Hepburn’s character said to Cary Grant in the 1960s film Charade. You know what’s wrong with you – nothing! If only we could say the same of Britain. I am a naturally positive guy, but even I feel, maybe not despair, but unhappy. Four more years of Starmer, Reeves and Raynor – No!

There is one seed of hope. Who in their right mind is going to vote Tory or Labour in the next General Election? Not me, and increasingly, people, looking nervously around, (Oh, the shame of it) whisper in my ear that they, too, will vote for Farage and Reform come the next election.

When people consistently fail at a job, they must be sacked. That’s it for Labour and the Tories. They have had their turn, many turns, and their performance has been dismal. If they were ever going to get it right, they would have done so.

The stock market is an excellent thermometer. If it rises year after year, a country can feel that it is generally successful. Since the last peak on January 3, 2000, the Nasdaq 100 has risen almost fivefold. Over the same period, the equivalent UK index, the FTSE 100, has risen 26.9pc.

Since January 1988, the FTSE 100 has done better. It is up nearly five times. But since 1988, the Nasdaq 100. Wait for it. Drum roll! The Nasdaq 100 is up 131 times.

When I was young, after we had just defeated Hitler and the ‘Nasties’, I was so proud to be British. Better still, even though my father was Scottish and my mother Welsh, I felt English, the class act on this island. My passport was the best in the world. Britain ruled the waves and much of the world. We taught the Americans almost everything they knew and the French stood up to have a poo and mowed their fields with ploughs pulled by oxen.

Now, I wish I were American, although I agree that Britain, like much of Europe, is still a green and pleasant land in which to live, especially if you are one of the lucky few who still have a few bob. I know, travelling around London and south east England, it doesn’t seem so few, but in total numbers, I’m not sure, to be honest.

Labour has adopted a policy towards non-doms by which they have to pay 40pc inheritance tax on all their global assets if they are long-term residents in the UK. Someone correct me if I am wrong about that. If I am anywhere near right, what an insane decision. Of course, they will all leave. How on earth can that be a good idea?

Under the new system, non-UK assets will be within the scope of inheritance tax if an individual qualifies as a long-term resident (defined as being UK resident for ten out of the previous 20 years). Individuals who leave the UK will remain within the scope of inheritance tax for a period ranging from three to 10 years after their departure. Trusts holding non-UK assets will also be subject to inheritance tax charges at relevant chargeable events if the settlor is a long-term resident (subject to certain transitional provisions for trusts settled prior to 30 October 2024).

Tax Adviser

This is disastrous. Non-doms will have a huge incentive to leave the UK, wave two fingers to the Inland Revenue, and make sure never to come back. New non-doms, who can contribute in so many ways to the country where they choose to live, will never come.

The worst kind of government is one driven by ideology. Tax the rich until the pips squeak to help the deserving poor, even if they are a load of skivers pretending to have back problems and/ or mental health issues.

Remember Catch-22, the famous book by Joseph Heller. What was Catch 22, as applicable to US soldiers serving in the Korean War, whose main motivation was to stay alive? The only way to get an honourable discharge was to persuade the army that you were mad. But anyone who wanted to leave the army must be sane, so no escape.

We, as a country, are stuck in Catch-22. A person with a bad back or mental health issues should be looked after by a caring state. We can all agree with that part. But what happens if, as is effectively what is happening with these invisible complaints, you can (a) self-diagnose and (b) then be paid handsomely for not working.

Look around you guys; that’s what will happen and it will go on happening until the last non-dom has left the country, anyone with an ounce of initiative has departed for greener shores elsewhere, 80pc of the country is being paid to watch Wimbledon and the UK has twinned with Venezuela.

So, yes, I am going to vote Farage and Reform at the first opportunity, and I hope he breaks a few eggs to make a decent omelette because the country of which I used to be so proud to be a citizen, will carry on down the tubes if he doesn’t.

He doesn’t have to do it all himself. He can stay down the pub, swilling beers. I don’t care as long as he brings in some people who have read Adam Smith and David Ricardo, know what they are doing and are not afraid to do it.

All this adds greatly to the attractions of investing in US equities via a spread betting account. In this way, you acquire assets beyond the reach of the most voracious of governments and have more flexibility to swan off elsewhere if things become insupportable.

I notice that Jeremy Corbyn, the reducto ad absurdum of left-wing politics, is forming a new party. This is not such a dumb idea. Angry voters often move to extremes, and the extreme left, although proved time and again to be disastrous for a country’s citizens, can attract votes in times of growing disillusionment. Before Napoleon, France had Robespierre, who I expect would quickly have become best mates with Corbyn.

If he is thinking long term, Corbyn might be gambling on a Reform government being elected and then becoming bogged down in bureaucracy and failing to solve the country’s problems. After which – Long live the revolution!

If I were a young man and deeply cynical, I might join Corbyn’s party in hopes of being a Commissar, in the car crash country that Britain would become. Remember George Orwell’s Animal Farm and the tragic story of Boxer. Better to be a pig than a horse.

Boxer, a horse, is a tragic hero. He is a hard worker, strong, loyal and caring. He also fights bravely against the humans. Unfortunately, he is too loyal, the pigs take advantage of this and work him until he collapses. Then they sell him to the horse slaughterer so that they can buy more whisky. Whenever something goes wrong, he blames himself and vows to work even harder.

His favourite sayings are ‘Napoleon [the chief pig] is always right’ and ‘I will work harder’. He is the strongest animal and could easily fight off the pigs and dogs. He never does though, as he is too used to taking orders.

BBC for GCSE

It brings tears to my eyes. The world is not fair.

What it is, though, I suspect, is at war, as yet undeclared, rather like Huxley’s Brave New World, where mysterious empires were always battling against each other, with the main objective to keep the existing elites in power and enjoying their privileges.

The enemy is a consortium of China, Russia, Iran and North Korea. The Home Side can loosely be characterised as the West, even if some member states are located elsewhere. If the world is in a rumbling state of endless proxy wars, sanctions, tariffs, and intelligence operations, then the future is going to be all about technology, productivity, and ever bigger and more powerful corporations.

As investors, we need to keep our wits about us and take advantage of the massive investment opportunities likely to be created. Fluid investments like shares, especially US shares, but that boom may eventually go global, and other assets like cryptocurrencies will become increasingly attractive. Property is harder to read because it can be taxed, but is also becoming ever more scarce, which drives values higher.

I agree with Alex Karp, bat-shit crazy CEO of Palantir. The West needs to be able to bring death and violence to its enemies to make sure they do not try to take advantage. The more we have the capability, the less we will need to use it. You have to stand up to bullies. There is no other way.

When I was at prep school, one of the teachers told one of the bigger boys to tidy up the classroom chairs. As soon as she left the room, he made me do it. As I did it, my resentment grew. Eventually, I picked up a heavy book and walked over to where he was sitting. He turned around, and I smashed him in the face with it.

He sat there sobbing with pain while I stood frozen with terror, awaiting a terrible retribution. He was years older than I. Eventually, he walked over to me, drew back his fist, and I waited. Nothing happened. He couldn’t do it. The next day, he came into the main schoolroom with the most massive black eye and half his face swollen. After that, neither he nor anyone else touched me again, and he and I became friends. He was not a bad guy.

Simmering

You all know my enthusiasm for the 3x leveraged, daily rebalanced Nasdaq 100 tracking ETF, QQQ3. On this chart, we can see that $250 is a key resistance level. What else do we know? This is America. It is going to be broken. These shares are a screaming buy, and if they fall, buy some more. This is a classic win-in-the-end stock, and leverage means you win big.

Share Recommendations

QQQ3

I am listening to T.K. Hulin, one of the kings of swamp pop. How I love this guy, even if his voice sounds as though he is singing bravely through tears. I am so glad I love music so much. Such an easy pleasure, especially in the era of Spotify, and it leaves me feeling so good. Judging by the songs, they have some seriously hot women in the Bayous with wonderful names like Belinda, Mathilda, Josephine and Colinda.

My daughter, Arabella, was checking life expectancies because of a conversation we had been having. She was horrified to discover that residents of Kensington & Chelsea pretty much live forever. “Oh God, Dad”, she groaned, “I am never going to get rid of you”.

We are a close, loving family. At least we can speak freely to each other, which is all good, I think.

On the chart, QQQ3 has bounced off $250 four times. It is a no-brainer to suppose that when it finally musters the force to go through it, it will not stop there. Where is it going? At a minimum, we must be talking $500, and that could just be the breakout.