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PANDEMIC PANIC: 2nd Wave Climax – FED CRIPPLED!

This article was contributed by Lior Gantz of the Wealth Research Group. 

What NO ONE expects is a deep recession; there are a number of CONFLICTING THEORIES as to what the recovery will look like, but nothing about entering a recession. The consensus is that the pandemic is highly contagious, but not lethal; “with a vaccine coming and FEAR LEVELS subsiding, a recovery has begun,” is the general idea.

Where OPINIONS DIFFER is about its strength and inclusiveness of the recovery:

  1. Dichotomy – This is the thesis that claims BIG BUSINESS is eating up SMALL BUSINESS, so the recovery is HAPPENING, but it isn’t a healthy one. We’ll see GDP printing better stats with each PASSING QUARTER, but poverty is increasing, since BIG gets BIGGER and small gets TINY.
  2. Vaccine-Dependent – This camp believes that the PENT-UP DEMAND will be unleashed, once first-responders agree to take the vaccine. That stamp of approval will LEAD to CONFIDENCE worldwide; I want to show you how much DISTRUST THERE IS in the value stocks, which are companies that dominate their industries but are growing slowly and predictably, not fast and sporadically.

The market believes that each company that isn’t on the cloud is going out of business, which has led to a bubble:

Courtesy: Zerohedge.com

You should consider THE FACTS about the pandemic before I move on to the THIRD CAMP, which are the investors who believe in the “V”-shaped or quick “U”-shaped recovery. They’re BUYING DIPS, as I am right now, following our FOUR WATCH LISTS: 1, 2, 3, and TECH.

The MOST IMPORTANT fact is that the PANDEMIC ITSELF isn’t lethal; the real crisis is overwhelmed hospitals and insufficient medical staff.

While no one likes to see CROWDED HEALTH FACILITIES, if those do return, this would be nowhere near the panic levels of March, when healthy people feared FOR THEIR LIVES.

Therefore, to expect markets to price in MARCH LOWS is a bit of a stretch of the imagination.

Instead, be agile in your thinking; there are REAL BARGAINS out there. Flexibility is needed, though. Don’t wait for sellers to hand you once-in-a-generation prices for the second time in six months.

Courtesy: Zerohedge.com

As you can see, tight presidential races WEIGH ON PRICES, since it’s a huge unknown factor, especially when the parties are THIS POLARIZED on policy and public ideas.

It’s a tale of two Americas with two opposite agendas.

Where does gold come into the picture?

  1. Slow “V” or Fast “U” – Those who are FREE-MARKET oriented understand that businesses have muscled through the ROUGH PATCH and that capitalistic forces are driving innovation in this post-COVID-19 reality.

Wall Street and institutional money will be ENTERING EQUITIES on this severe dip and you ought to know that BUYING NOW is playing with fire, but I am certainly am.

Gold stocks have also reached their MOMENT OF TRUTH:

Courtesy: U.S. Global Investors

They MUST PENETRATE below the average of 2.5; that will signal a MULTI-YEAR TREND, which will confirm the bull market. The fact that Kinross and Newmont, among other large-cap miners, are RAISING DIVIDENDS, is a healthy sign of confidence from the most reputable management teams out there.

The September dip has allowed us to find companies with GREAT SUPPORT and I’m going to present new stock profiles, since, as the chart above shows, we’re ON THE CUSP of the REAL MOVE.

Gold might sell in this panic even further, but that’s not the REAL TREND; think ahead by 6-12 months and you’ll realize that inflation is accelerating!

The post PANDEMIC PANIC: 2nd Wave Climax – FED CRIPPLED! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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TOUCHED A RAW NERVE: Silver Roaring – $20 BECOMES REALITY!!

This article was contributed by James Davis at Future Money Trends. 

I’m probably going to shock you, but I am currently CAUTIOUS WITH precious metals.

Gold and silver have been GENERATING SPECTACULAR returns for us in 2020, especially if you caught the bottom with silver since we’re up more than 50% since.

Gold stocks and silver stocks have been CHEWING THROUGH WALLS and delivering massive gains as well.

Right now, though, gold is swimming in the HIGH SEAS. It’s playing with price targets that are FOREIGN TO IT. Goldman Sachs sees it hitting $2,000, Bank of America sees $3,000, and Rob McEwen predicts $5,000.

Silver is SO, SO CLOSE to hitting $20/ounce and it’s up nearly 60% since April!

We should begin to entertain the thought that precious metals are going to face TREMENDOUS RESISTANCE in the days and weeks ahead, perhaps the most excruciating seller momentum ever as short-term traders TAKE PROFITS on both the physical metals and the stocks.

Courtesy: Zerohedge.com

This is SUPERIORITY!

In 1980, Paul Volcker, then FED Chairman, gave fiat currencies air by raising rates to over 15%. Doing so stopped the INFLATIONARY MADNESS of the 1970s, but it also birthed the beginning of the end for America’s middle class and savers.

He basically CREATED THE TOP for government interest rates.

Look at the chart above and you’ll notice how he stopped gold from entering a point where it would have covered more than the ENTIRE CURRENCY SUPPLY.

At $850/ounce, gold had backed the dollar again by free-market forces in 1980.

Nixon essentially freed it up in 1971 to CALL BULLSHIT on the $35:1 conversion, and in nine years, it achieved that goal.

Had this happened once more in 2020, the price would be north of $20,000/ounce.

In other words, today’s gold price of $1,820 is EQUIVALENT TO gold’s price in the mid-1970s when it traded for $60.

We need to put things INTO CONTEXT, and today, gold covers only 5% of the dollars in existence, which means that $850 in 1980 is like $36,000 today!

Courtesy: Zerohedge.com

Goldman Sachs has put S&P 500 earnings for the full year at $115, which means that at 3,200 points, the P/E ratio is currently 27.8.

In this environment, VALUATIONS of the classical kind are less meaningful than in previous times since so much liquidity is pumped into the currency system that stocks serve as an INCOME HEDGE to governments and corporate bonds.

The S&P 500 dividend yield is 1.93%, which is 300% MORE THAN the yield of the benchmark 10-year Treasury bond.

A pension fund, university endowment fund, sovereign wealth fund, insurance company, and wealthy institution will CHOOSE STOCKS over bonds in this world.

Stocks are now bond replacements, which is the reason investors are willing to pay ADDITIONAL PREMIUMS for them, but there’s a limit to that.

Courtesy: Zerohedge.com

We’re entering a DEEP RECESSION. In it, many Americans will be suffering.

Don’t wait for Trump, Biden, or anyone else to dig you out of the situation you find yourself in.

Create your own destiny; this is a time for CALIBRATING CAREER CHOICES.

Struggling industries, such as travel, leisure, hospitality, restaurants, retail stores, banking, insurance, energy, and commercial real estate are SPEWING LAVA with opportunities to fill roles of leadership and innovation.

Capitalize on the leadership gap and assume your position in history!

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