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Yesterday saw an exuberant and excited stock market that rallied upwards based on news that inflation was only up 8.5% year over year. Odd to say that a market would get that excited over high inflation that still beckons higher interest rates to control, but nevertheless, as I pointed out yesterday, never fight the tape. This morning another inflation indicator was considered positive, and the markets are up again.
Consider this.
· The S&P500 is up 16% from the June lows but still down 11% since January 1st.
· The NASDAQ is up 20% since June but still off 18% from January.
· During the Dotcom Bubble crash of 2000-02 the NASDAQ had seven rallies of 20% or more during that time frame that saw the index fell 78%.
· During the 1929-32 crash there was five rallies of 25% or more during on the way down to an 89% collapse.
Our money managers advised that the risks of downside still loom large. And like what we saw in the years mentioned above and in 2008, this rally appears to be a Bear Market Bounce rather than the beginning of a new bull market and one that will turn south once the exuberance dies down.
Going forward we urge anyone that is still sitting in a Buy and Hold portfolio to take advantage of this opportunity and reposition your portfolio with greater diversification by adding precious metals to your portfolio. It is a great opportunity to Sell High and Buy Low.
It is our belief that before years end the financial markets will be unrecognizable to what they are today as the burden of worldwide debt, high inflation, rising interest rates and collapsing currencies will see the downfall of the system we have known for years. The system is not sustainable, and countries, corporations and individuals will fall under the weight of this excessive borrowing, spending and literal printing of money that has been used to create false wealth and especially line the pockets of the 0.1%.
The fiat money system throughout 6000 years has always collapsed and been replaced with a Gold backed system. What that looks like I have no idea, but I do believe that it is needed to flush out and cleanse what is rotten and corrupt in the current system. If you want a glimpse of where we are at currently watch Mike Maloney’s Hidden Secrets of Money. It is a 10-part series that was recorded sometime ago but is incredibly accurate as you follow the time lines. I suggest starting with the 29-minute version of episode 7 as it is where we are at right now. VELOCITY & The Money Illusion - Hidden Secrets Of Money Episode 7 - Mike Maloney - Bing video
We are seeing the start. Yesterday two former JP Morgan precious metals traders including the head of the department were found guilty of manipulating gold and silver prices for years. JPMorgan traders found guilty of manipulating gold market for years | The Straits Times Often laughed off as a conspiracy theory we now see the proof starting to surface and I’d suggest, this is just the tip of the iceberg. Gold, and especially silver should be trading substantially higher.
Call or email us to book a free consultation to discuss how we can help you walk through the landmine that lies ahead of us.
Yours in Faith, Family and Finance,
Daryl
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