Dec 10, 2020
Markets are in for a very wild ride. Covid taking front and center and the stock market is still holding up in spite of the threat.There’s an attempt at the Santa Rally, we'll see if it succeeds. However, markets will close higher for the year. Renewed investor interest will keep things moving to the upside. They’re looking beyond. Rally will continue into January. More stimulus is certainly coming and the markets can't get enough of it. At some point there will be a pretty sharp connection. Perhaps another March crash. But until then, individual industries are rocketing higher. EV market is on fire. Big money is flowing into it. How long will they print for and drive the Dollar down? Nominal returns aren’t real returns.
Gold and precious metals are the ultimate insurance policy. For obvious reasons. You need physical things and we’re coming into a commodity super-cycle. Where do you go when currencies are falling.
Copper has had an impressive upward move. It’s a good sign on the overall economy. Fundamentals are down, but markets are saying otherwise. Oil is recovering and this could be a full-fledged bull market. One reason why metals have been under-performing. Gold and silver are still in a very positive bull flag pattern.
Platinum could be on the verge of great returns. It was near a breakout. Could be a multi-month/year breakout. It’s not a crowded traded. This is how bottoms are created.
Interest rates will be stagnant for well into the future. Bonds are starting to show some signs rallying upward. The Fed can't afford to raise rates now or forever.