Thu, 14 May 2020
The recent increase is the stock markets is normal behavior after a crash. The majority of stocks are lagging at the same time the small caps are under performing. Many are hitting new lows and are rolling over and heading south. You’re paying more for shares than before the crash. The fundamentals are worse than ever. If you’re a long term investor this is when you need to step up to the plate and learn how to profit from bear market. You need to be on the right side of the market. Bonds and cash. If you play it correctly, retirment becomes a possiblity. Any type of retirment account can really pay off. Another March type crash is in the offing. March was pure panic, the big funds dumped share on bad fundamentals and then people panicked while rushing into cash. The fear of death is over and people will look to gold. Gold is the most stable place to put money. Silver and the gold juniors are not yet in a bull market, but that’s coming soon. We’re going to get close to negative rates. That’s when precious metals will begin to shine. Tech has been on fire but the laggards such as airline stocks are close to hitting new lows. Financials heading for a major decline. |
Thu, 14 May 2020
There’s a huge gap between asset valuations and the economy. Just look to the Fed. Many times we were assured there would never be debt monetization. Now, they’re not just buying corporate debt but also buying junk bonds as well. The Fed is actually making loans directly to businesses and passing out stimulus to anyone with a pulse. The Fed has truly gone rogue. And yet, inflation stays down. Q2 is going to see $3 trillion deficit and a $4 trillion deficit for the year. There’s no productivity associated with this stimulus. According to Michael Pinto this will result massive stagflation due to massive money printing. This is unique. In 2018 stocks took a hit, even though profits were up. Why? It was because the Fed was tightening. And then the reverse happened in 2019. Where do you to find a free market indicator? Michael and I have been warning about this for years. We’re heading for the most negative rates in history. With negative rates, we’re increasing current spending, which can only result in Stagflation. Is hyper-inflation a possibility? Not likely because it’s inconceivable that the US Dollar will collapse against it’s trading partners. But inflation will run into double digits, kicking off the greater depression. The implosion of the bond market is sure to happen. Insolvent debt on the corporate and sovereigh realms. It’s a surefire way for a debt collapse. |
