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Experts Are Warning That A U.S. Stock Market Crash Is Very Likely In The Months Ahead

This article was originally published by Michael Snyder at The Economic Collapse Blog.

Stock prices are not going to stay this high.  Everyone can see that we are in a stock market bubble that does not have any parallel in all of U.S. history, and everyone can see that the end of that bubble is approaching.

The only debate is about how fast and how far the eventual fall will be.  For the first time ever, the ratio of U.S. stock prices to U.S. GDP has reached 200 percent.  In other words, the total value of U.S. stocks is now twice as high as the value of all U.S. economic output for an entire year.  To get an idea of how crazy this is, just check out this chart.  Historically, the ratio of U.S. stock prices to U.S. GDP is normally under 100 percent, and so if all stock prices were cut in half U.S. stocks would still be overvalued.  That is how extreme this bubble has become.

Other key valuation measures also indicate that stock prices have gotten wildly out of balance.  The following example comes from a Motley Fool article entitled “Here’s Why You Should Expect a 20% Stock Market Crash in 2021”

Looking back 150 years, the S&P 500 has averaged a Shiller P/E of 16.78. Admittedly, the Shiller P/E ratio has been a lot higher over the past 25 years. The advent of the internet has broken down information barriers for retail investors, and historically low lending rates for more than a decade have fueled borrowing and lit a fire under growth stocks.

But as of Feb. 3, the Shiller P/E for the S&P 500 was knocking on the door of 35 — more than double the long-term average. To put this figure into some context, there have only been five periods in history where the Shiller P/E ratio topped 30 and stayed there during a bull market run. Two of these events — the Great Depression and dot-com bubble — led to some of the biggest pullbacks ever witnessed in equities. Two other events (not counting the current move) occurred within the past three years, delivering declines of 20% and 34%, respectively, in the S&P 500.

Basically what this is saying is that if stock prices fell by half, the Shiller P/E for the S&P 500 would still be above the long-term average.

So if the market only falls by 20 percent this year as that Motley Fool article is suggesting, we should consider ourselves to be extremely fortunate.

We have never seen anything like this before.  The bubble that we are in now absolutely dwarfs the epic stock market bubbles of 1929 and 2000.  Stock market mania has gripped the entire nation, and all sorts of people have been getting rich, at least on paper.

But many Wall Street veterans that have been watching all of this transpire have become extremely concerned.  The following comes from a Forbes article entitled “Is The Stock Market About To Crash?”

‘Very, very concerning’ echoes of the 90s dot-com bubble are being heard loud and clear by nervous market experts. A 12-year-old bull market; SPAC mania; IPOs that more than double on the first trading day; an army of amateur traders and GameStop mania. It certainly feels like irrational exuberance–and it triggers alarms for those who remember the dot-com bubble of the late 1990s. “The parallels we have today are historically very, very concerning,” notes Jim Stack, president of Whitefish, Montana’s InvesTech Research and Stack Financial Management. “The current froth is the icing on the cake, and when you look through it, you see a lot of other underlying issues.”

In this sort of environment, videos by kids on YouTube showing people how to make a million dollars by day trading stocks get hundreds of thousands of views.

If you have been able to make a lot of money by playing the stock market, good for you.

Just make sure that you get out in time.

Every other stock market bubble in U.S. history has ended badly, and as John Hussman recently noted, this is our generation’s moment of peak financial insanity…

Nothing so animates a speculative herd as a parabolic price advance in an asset detached from any standard of value. I am convinced that future generations will use the present moment to define the concept of a reckless speculative extreme, in the same way our generation uses “1929” and “2000.”

So just how far does Hussman think the market could ultimately fall?

Well, he believes that stock prices would have to drop 65 to 70 percent just to get back to historical norms…

Understand how extreme current valuations have become. In order to simply touch run-of-the-mill historical valuation norms, the S&P 500 would have to lose somewhere in the range of 65-70% over the completion of this cycle.

Stock prices always, always, always get back to their historical averages eventually.

It is just a matter of time.

However, we should hope that a stock market crash can be put off for as long as possible because a truly catastrophic stock market crash would cause far more economic pain than we have experienced so far.

Our system simply would not be able to handle a decline of 50 percent or more in stock prices.  It would essentially mean the end of our financial system as we know it today, and that is something that nobody should want.

The good news is that I do not expect a stock market crash within the next 30 days unless some sort of major “trigger event” comes along.

Stocks may go down, but for the moment I expect at least a short-term period of relative stability.

But that short-term period of relative stability will not last very long at all, and I fully expect 2021 as a whole to be a very, very painful year.

***Michael’s new book entitled “Lost Prophecies Of The Future Of America” is now available in paperback and for the Kindle on Amazon.***

About the Author: My name is Michael Snyder and my brand new book entitled “Lost Prophecies Of The Future Of America” is now available on Amazon.com.  In addition to my new book, I have written four others that are available on Amazon.com including The Beginning Of The EndGet Prepared Now, and Living A Life That Really Matters. (#CommissionsEarned)  By purchasing the books you help to support the work that my wife and I are doing, and by giving it to others you help to multiply the impact that we are having on people all over the globe.  I have published thousands of articles on The Economic Collapse BlogEnd Of The American Dream, and The Most Important News, and the articles that I publish on those sites are republished on dozens of other prominent websites all over the globe.  I always freely and happily allow others to republish my articles on their own websites, but I also ask that they include this “About the Author” section with each article.  The material contained in this article is for general information purposes only, and readers should consult licensed professionals before making any legal, business, financial, or health decisions.  I encourage you to follow me on social media on FacebookTwitter, and Parler, and anyway that you can share these articles with others is a great help.  During these very challenging times, people will need hope more than ever before, and it is our goal to share the gospel of Jesus Christ with as many people as we possibly can.

The post Experts Are Warning That A U.S. Stock Market Crash Is Very Likely In The Months Ahead first appeared on SHTF Plan – When It Hits The Fan, Don’t Say We Didn’t Warn You.

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WE HAVE A WINNER: ELECTIONS 2020!

This article was contributed by the Wealth Research Group. 

Around the globe, millions of media personnel, content creators, news websites, propaganda outlets, and social media giants are covering the elections; it’s a ratings bonanza.

People are literally glued to their screens since this election does matter; it is a struggle for the soul of a nation that has dominated planet Earth, without question, since the end of WW2.

Though it only comprises 4% of the global population, its economic engine contributes just below 25% of global GDP. Its military presence in around 150 countries is unprecedented. Its companies are some of the largest in the world (Apple, Amazon, Microsoft, Google, and Facebook) and in the decade that has just begun, we’ll probably witness 30-100 more TRILLION-DOLLAR businesses being born on U.S. soil, some of which are currently just ideas, germinating in the minds of future entrepreneurs.

The United States is a country of extreme contrast between the various states that comprise the union and the glue that has bound them together since 1776 – a cocktail of shared values, which are cherished by its citizens, is potentially passing its expiration date.

Today, more than ever before in my lifetime, and to my knowledge, more than any other time in the 20th and 21st centuries, this glue is coming undone.

The differences of opinions on just about any topic are huge, but more than that, there is a lack of willingness to compromise.

Each side does not believe that it is worthwhile to be flexible with the other; the image that each American has of his fellow American who votes for the other party, or who feels differently than him on a certain topic, is that he is brainwashed and can’t see the truth.

It’s a slippery slope.

I’m not here to predict civil war or the end of the union; my sole purpose with WealthResearchgroup.com publications, through this newsletter, is to provide context, value and to empower you to think about the big things in life – not dwelling on the transitory, temporary, flitting or petty.

The winner of today’s elections could be either Joe Biden or Donald Trump, but the captain of the ship that is your life is YOU, so you must “win” this election. You need to take today and reclaim victory over your own circumstances. Have you plateaued? Time to grow above it…

Personally, we believe Trump can do it and will do it!

Life boils down to 24-hour sessions, where between 30% and 33% is devoted to a rejuvenation of the mind, body, and soul via sound sleep. Before you do anything else, give this some thought, since it has been proven beyond any shadow of a doubt that human beings MUST SLEEP WELL.

Spend time creating the ideal environment for you – bed, linens, mattress, no lighting, and zero distractions; think of the process and the routine of this important human task – which you do EVERY DAY – and perfect it. You’ll see major results. The late Kobe Bryant attributed sleep tactics to winning his back-to-back championships in his second go at them.

Think of the last 15-30 minutes of your waking hours and of the first 30 minutes, upon getting up; it is proven that what you focus on and pay attention to at those times will be engrained in your life – do you read? Pay gratitude? Write down today’s/tomorrow’s tasks?

Once you’re up, you spend 65%-70% of your life in the state of full operation and must divide it between BODY, INTELLECT, and SOUL, giving these three the best you can deliver to them. Unhappiness originates from a lack of fulfillment in one or more of these areas, the only ones that human beings are made out of.

Are you inspired to live an amazing life, to put the past behind you for good, and just LIVE?

Here are big questions to ask, make decisions about, and act with UNWAVERING FAITH to accomplish:

  1. Are you good at what you do? That will be a determining factor in how much money you’ll make. Can you perform above and beyond what’s expected of you, constantly evolving, never sleeping while on guard? You have to OUTGROW your current position, in order for more opportunities to arrive. I faced many issues over the years, hitting brick walls time and again, determined to rise up to the next level, but not connecting the dots on what’s missing. Relentlessly, I kept analyzing and internally improving, until breakthroughs started to appear.
  2. If you happen to be good at something that you don’t particularly like, do you have pastime hobbies that elevate you and offset the fact that your primary source of income comes at a cost of personal sacrifice? Not everyone that loves basketball gets to make a career out of it…
  3. Are you in love? Do you share your life and your time with someone who supports you, is loyal to you, and is fun to be with? One of the lucky breaks I caught was to find the perfect woman for me when I was just 21. We’ve been together ever since, started a family, and have a bond that is supportive of both of us.
  4. Do you love your neighborhood, city, and state? The world is your oyster in the 21st century; you’re not a plant anymore.

These are just questions to start-off with; no scientific study has ever found and none ever will that there’s a limit to the amount of brain cells, which can be developed in order to perform a certain task, to accomplish a given feat or mission; human beings can grow in patience, kindness, generosity, tolerance, flexibility, forgiveness, loyalty, positivity, cheerfulness, poise and the only limits are ones that we believe in and set for ourselves.

Don’t compare yourself to anybody else and don’t think anyone else has a secret that you don’t possess. The difference between people is not external, but in the way THEY THINK.

Think, Think, Think!

The post WE HAVE A WINNER: ELECTIONS 2020! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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US economy tops projections, posts largest-ever GDP increase in third quarter just days before the election

The United States economy posted a record-breaking rebound in the third quarter and has gone a long way toward recovering from the devastation reaped by the coronavirus-related shutdowns, according to new data released by the Commerce Department.

From July through September, the U.S. gross domestic product grew by 7.4%, which equals an annualized rate of 33.1%, the Bureau of Economic Analysis announced in a news release on Thursday. It’s the largest quarterly GDP gain ever recorded.

Image Source: U.S. Bureau of Economic Analysis

The news, which comes just five days before the election, could provide a boost to President Donald Trump’s re-election chances. The president will undoubtedly tout the new numbers as evidence that he has successfully led the country through difficult economic times.

Though economists largely expected the GDP to rebound at an unprecedented rate in the third quarter, Bloomberg News noted that the increase still managed to top economists’ most recent prediction of a 32% increase, and blew away their forecast of an 18% increase from a few months ago.

The third-quarter gains were powered by major increases in consumer spending and business and residential investment, according to the BEA news release. The industries that benefitted most from increased consumer spending were health care, food services, motor vehicles, and clothing and footwear.

While the latest update is certainly good news for the economy, it should be noted that the third quarter gains followed the second quarter’s 31.4% plunge, which was also a record-breaking number. The economy is still climbing out of the deep hole it plunged into in April and May as the pandemic thrust the nation into an economic standstill.

According to The Hill, about 10.7 million of the more than 20 million jobs lost during the pandemic have yet to be recovered. The nation’s unemployment rate has improved to 7.9% over the last several months, but that figure is still more than double its pre-pandemic level.

“This is going to be seized upon by both ends of the political spectrum as either evidence of the strength of the post-lockdown economic rebound or a cursory warning that the gains could be short-lived,” James McCann, senior global economist at Aberdeen Standard Investments, told CNBC.

“[But] the reality is that the GDP numbers demonstrate that the U.S. economy did indeed rebound strongly as lockdown measures were lifted,” he added.

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FORGET OLD BIDEN: Rookie Investors FAR MORE DELUSIONAL!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

We’re not in a Dot.Com bubble, but we’re certainly in a TECH DISRUPTION BOOM!

Companies are re-creating entire industries, and stocks that are just in their infancy are going up by hundreds and even thousands of percent, based on expected earnings and market penetration.

There are amazing opportunities in tech, which is why the NASDAQ is flying to the moon, but owning stakes in a well-diversified ETF of booming tech sectors, such as cloud-based services, payment systems and cyber security, ISN’T A REPLACEMENT for level-headed thinking about price and value.

It doesn’t matter how promising a company looks, there’s a RIGHT price and a WRONG price for everything. It boils down to risk tolerance and alternatives.

If the world of equities was restricted to just a few assets, then prices for them would be higher, but there are thousands of options out there, so BE PATIENT.

Courtesy: Zerohedge.com

As you can see, the VIX index going up and the stock market DUMPING HARD is sending yields back down, as the chase for SAFE HAVENS is increasing.

In this world, markets move SUPER-FAST; the bear market, for example, only lasted 34 days. From top to bottom, the -35% MARCH CRASH took only 16 days. Everything happens more quickly than ever.

If one wants to TAKE ADVANTAGE of opportunities, one has to be ready at all times.

What 2020 is teaching me is how valuable of a skill it is to UNDERSTAND PEOPLE and to think about other people’s needs and hot buttons.

Companies and individuals that are experts at knowing WHAT’S IMPORTANT for others find it easier to do business and to increase sales, profits and margins.

One can’t live according to OLD ADAGES that aren’t true anymore, since he’ll miss out on what’s happening today.

The most DAMAGING THOUGHT that I see many industry leaders entertaining is that their sector will return to its pre-covid-19 status, but EVEN THOUGH this pandemic is mostly propaganda, misinformation and plenty of bullshit, the WORLD HAS CHANGED.

Courtesy: Zerohedge.com

As you can see, we’re in a PRETTY AMAZING SPOT to enter the commodities sector!

China is CUTTING BACK on its exposure to U.S. Treasuries and that’s a form of dollar debasement.

As you know, debt continues to be a MASSIVE STORM CLOUD, with global debts reaching 230% the GDP, at the same time as equities are reaching that SAME AMOUNT.

The point is that we can’t IGNORE FACTS: the resource segment has a chance to blow out other industries in the years ahead.

Therefore, we have created an INCREDIBLE PORTFOLIO, consisting of four companies to start with. We’ll be strengthening it and offering more diversification with additional profiled stocks in the weeks to come.

This is the IDEAL PORTFOLIO, in our opinion. You can DOWNLOAD IT here and use it as an initial basis for further analysis on your part.

The post FORGET OLD BIDEN: Rookie Investors FAR MORE DELUSIONAL! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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GOLD $2,134: CAN’T GET ANY MORE OBVIOUS!

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

We wrote last week that gold stocks PEAKED on the 5th of August. Right after that, we saw a flood of INBOUND INQUIRIES, so let me clarify that our message is not that they hit a top and are now moving towards a bear market, but that they’re PULLING BACK, churning and gathering momentum for their next move!

The case for gold stocks is REALLY LEGITIMATE today, even for mainstream investors, shown best by Berkshire Hathaway’s ENTRANCE INTO the sector.

What are they seeing?

Courtesy: Zerohedge.com, Crescat Capital LLC (great charts)

The S&P 500 companies are STILL GROWING, even in these uncertain economic times, but the RISK/REWARD isn’t appealing, as you can see above.

I want to recap the important factors to consider going forward, as the plethora of equities clearly doesn’t OFFER TOO MANY BARGAINS, as we speak.

A. The Wilshire 5000, an index that is far bigger than the S&P 500, since it shows a clearer picture of 10 times the amount of companies, has reached the milestone of NEARLY TWO-TIMES the U.S. GDP!

That has never happened before. In fact, it was only in 2012 that it reached 100% of GDP, so prices of equities have SKYROCKETED. This is testament that multinational companies, which are global, boost the GDP of other countries, at the expense of The United States’ and that’s part of the reason for the deficits.

B. S&P 500 alone is worth nearly 1.5 times the GDP of the United States

C. Still, with 8 in 10 Chief Financial Officers indicating that they believe markets are overvalued, the contrarian move is still to BE INVESTED, rather than have everything you got in cash.

Fear is largely over-hyped; the pandemic is A FRACTION of what it was presumed to be, medically speaking, so the PARALYZED CASH POSITION might not be your best course of action.

As you know, our stock profile opportunities have delivered INDEX-BEATING returns and I’d love to see the streak continue.

Courtesy: Zerohedge.com

When the VIX is GOING UP, at the same time as the index is hitting ALL-TIME highs, the result has been a CORRECTION every single time, so as I warned this past Sunday, don’t expect a RAGING BULL this month.

September is already the most volatile month of the year, historically, with an AVERAGE NEGATIVE return.

On the other hand, gold is going to enjoy SO MANY tailwind catalysts, as we approach the elections; the uncertain political outcome, coupled with the NEW INFLATION TARGETING process that the Federal Reserve has announced, will play a major role in making gold surpass $2,000/ounce again.

Gold stocks, which peaked one month ago, will SOAR BACK and you can already see the uptrend developing:

The top is noticeable, as well as the bottom. We’ll need to see a BREAKOUT ABOVE $64.05 and it’s off to the races.

I’m looking at some stats that leave NO ROOM for doubt; the bull market is very strong and the MANAGEMENT TEAMS are acting very responsibly.

The bull is BACK and we’ve uncovered a BRAND-NEW company, which has some features that lead us to believe that it could be added to the HALL OF FAME of gold stocks, if it pulls off its goals in the next twelve months.

The numbers we looked at were so DELICIOUS that we stopped all other tasks to make sure we gather all available data for you on it.

Expect a MAJOR UPDATE from us in the COMING DAYS!

The post GOLD ,134: CAN’T GET ANY MORE OBVIOUS! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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RENDEZVOUS w/DESTINY: Silver $52 – PIPES BURSTING!

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

I showed you the THREE BIG TRUTHS of the coming decade. Ignoring these trends will result in poverty, while adapting to them and ADOPTING THEM will lead TO RICHES.

The second truth is that rates will REMAIN NEAR ZERO for years, perhaps for good (until the dollar is replaced or joined by another reserve currency).

If that’s the case, NEGATIVE RATES are nearly guaranteed. Think of it in this light: if rates are zero and inflation isn’t, then real rates are negative BY DEFINITION.

Too many currency units in circulation have led the large institutional funds to embark upon adventures that they wouldn’t otherwise choose to engage in; they’re borrowing because it’s there for the taking.

There’s just NO WAY to generate a fixed-income stream the same way that it WAS POSSIBLE in the 1980s and 1990s, when nominal rates were high and inflation was quite moderate, NOT TO MENTION that debt/GDP ratios weren’t alarming, as they are today.

Courtesy: Zerohedge.com

The chart above shows the STRENGTH of the TREND. Inflation is rising, since Covid-19 isn’t nearly as bad as those early epidemiologists SCREAMED it WOULD BE.

Therefore, not only is the rebound quick to happen, BUT SINCE industries weren’t in a TOUGH SPOT going into this mess, there’s a real chance that dominant companies will BOUNCE BACK faster than we might expect.

In fact, that’s what the MARKETS ENVISION, since they treat the world’s MEGA-CAP companies, such as Apple Inc., Facebook, Google, Amazon and Microsoft, as more than regular businesses. They ascribe a MASSIVE PREMIUM to them, since they’re also stores of value, AAA bonds and gold, all in ONE CLICK of the mouse.

They dominate their industries, almost like monopolies do, but it’s not like that at all; customers have plenty of OTHER CHOICES, but they love the products and the services they get from them.

Other companies CAN BE DISRUPTED, overtaken or somehow seem vulnerable, but these ones are DEEMED INVINCIBLE.

This notion is translated into HISTORICALLY-HIGH levels of concentration of size, as you can see below:

Courtesy: Zerohedge.com, BearTrapsReport

The market now has days where the OVERWHELMING MAJORITY of stocks are down, deep IN THE RED and yet it closes up. This is possible only because the WEIGHT of the index is towards market capitalization.

This demonstrates the importance of owning the indices, since history proves that the LION’S SHARE of ultimate return originates from only a handful of stocks.

Two years ago was the last time I WALKED THE STREETS of Manhattan and visited the Federal Reserve’s building, as well as Wall Street, home to the New York Stock Exchange.

On this exchange, more than 3,000 public companies are listed. Today, with markets at ALL-TIME HIGHS, fewer than 50 of these stocks are trading at 52-week highs! On the NASDAQ, where about 3,500 tech and other types of companies are listed, fewer than 150 stocks are trading at 52-week highs!

I can see the WRITING ON THE WALL and it tells me we’re either ON THE PRECIPICE of a severe correction or, if the economy generally improves, on the cusp of a SPECTACULAR RALLY to even loftier valuations.

While it is impossible to predict which is next, we can HEDGE PROPERLY, by both diversifying into companies that are STILL CHEAP, while at the same time having exposure to the index, but also allocating funds into precious metals, real estate and PRIVATE DEBT.

Diversification is paramount!

The post RENDEZVOUS w/DESTINY: Silver – PIPES BURSTING! first appeared on SHTF Plan – When It Hits The Fan, Don't Say We Didn't Warn You.

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PIGS CAN FLY: BUFFETT BUYS GOLD!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

Say what you want about Warren Buffett, but for a man worth $90bn, after donating $37bn worth of Berkshire Hathaway stock in his life, Buffett is VERY HUMBLE. He spends his time playing incognito card games online (usually Bridge) and lives in the same house as when he was just starting out.

Many hate him, while others adore him, but one thing everyone agrees on is that Buffett doesn’t appreciate the advantages of gold. Buffett admits that he doesn’t know a whole lot about technology, a WEAK SPOT, which has caused him to forego investing in Microsoft for the past 30 years, even though Bill Gates is a very close friend of his!

Buffett realized that his weaknesses could be OVERRIDEN if he hired other money managers to allocate the $130bn that Berkshire has at its disposal. One of these two managers purchased about $600M in Barrick Gold shares in June.

When the 13F filings were disclosed last week, this brought shockwaves, since Buffett isn’t crazy about the unpredictability of commodities and their price fluctuations.

It also shows you, though, that Buffett has let go of his need to MANAGE EVERYTHING that Berkshire owns, which is a great character trait.

Courtesy: Zerohedge.com

It’s undeniable that DEFICITS MATTER.

Every country is different; for some, deficits can be enormous, since their GDP is huge as well, but all economies have an EXPIRATION DATE.

America is reaching its own breaking point and now everyday citizens will begin to experience THE DOWNSIDE of this, as the dollar will continue to LOSE SUPREMACY, while “on-shoring” will actually bring manufacturing to the states, resulting in a supply chain renaissance.

Courtesy: Zerohedge.com

Buffett has significant ownership positions in American banks, but those HAVE PROVEN to be duds.

Personally, my instincts say that 12 months from now gold will trade at about $2,200, but that there will also be a COOLING-OFF period between now and then for the spot price.

What I’m going to say might sound CONTROVERSIAL, but stick with me: Since the spot price will be flat, the INVESTMENT ACTION will swing to the mining shares, which will be reporting record earnings!

Buffett, looks like this time you DID NOT leave at the bottom, like with the airlines, but entered at the right time… congrats to Warren!

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SPELLBOUND: Investors on Knife’s Edge – HOSTILE TERRAIN!

This article was originally published by James Davis at Future Money Trends. 

Today’s letter is essentially a warning: if you are risking funds that you might need before 2025, YOU HAVE NO BUSINESS being in the markets today.

Anything can happen in the coming years, including a situation where prices remain EXACTLY THE SAME as today’s are, so if you aim to grow your investments, you might not see appreciation for a few years.

Dividend distributions have historically been in charge of delivering between 30% and 50% of TOTAL RETURNS to shareholders. I stress this because while management teams can play with profits on the books and with how they’re displayed, no one can ARGUE WITH rising, consistent dividend payments.

That’s the reason why nearly 40% of my net worth is tied to companies that have been raising their dividend payments for a decade OR MORE, without fail, and preferably a generation or more (25 years).

These companies are collectively called “Dividend Achievers” and “Dividend Aristocrats.”

I want to PROVE TO YOU that the longer you can HOLD TIGHT and avoid trading in and out of these, the more MIRACULOUS YOUR RETURNS will become over time!

In our NEWLY PUBLISHED watch list report part 2, which you can ACCESS HERE, we just entered a position in PPG Industries (PPG), for example, when the stock hit $97/share just a few days ago.

I want to show you how this company will ENRICH SHAREHOLDERS by 2030, so look at the following stats: In 2013, shares traded for roughly $66 and they paid $2.44/share in dividends. That equates to a yield of 3.6%. Fast-forward to today and split-adjusted, the company pays $4.08/share, which comes out to 6.2% on YOUR 2013 COST.

At this rate, by 2030, the company will pay a YEARLY DIVIDEND of $9.70/share, which will yield a 14% annualized return on the 2013 cost!

In other words, if you can avoid the TEMPTATION TO SELL shares prematurely or at the first sign of trouble and hold for 17 years, you’ll be earning 14% per year by owning one of the best businesses on the planet.

You can spoil all of this magic by selling when an event like COVID-19 occurs or you can remember the above lesson.

Courtesy: U.S. Global Investors

As you can see in the chart, at any given moment, there are PLENTY OF THINGS to worry about, such as the Banana Republic state of affairs in the United States right now or the lunacy of ENDLESS SPENDING.

FED Chairman Alan Greenspan held the Federal Reserve’s balance sheet at 5% of U.S. GDP for the longest time, and that may have been a COILED SPRING that his predecessors were forced to deal with or he was simply a SUPERIOR CENTRAL BANKER compared to them.

As of 2020, the Federal Reserve’s balance sheet is AN ASTONISHING 33% of GDP, a figure that will be unleashing terror on the markets for years to come.

We assess that it will be nearly impossible to expect normal returns from the S&P 500 index, the Dow Jones, or the NASDAQ 100, and the big money is in finding the “COVID-19 VICTIMS” that are able to weather the storm and return to PRE-VIRUS levels.

Courtesy: Zerohedge.com

The term “V”-shaped recovery is FINE TO USE, but we need to understand that one person’s V is another person’s U. It all depends on your timeline; the number of lost jobs this virus has brought about IS CATASTROPHIC.

45 million Americans have filed for unemployment, which comes out to nearly a third of the full-time workforce or about 30% of the total employment pool!

Even if we’re being TOTALLY OPTIMISTIC, the time it takes to remedy the situation is in YEARS, not months.

I am not discounting another 20% drop between now and the end of 2021, so we believe that more money will BE POURED INTO GOLD since the stakes are so high and the future is uncertain.

$2,000 gold will become a reality!

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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NO GOING BACK: Deep Negative Yields – GOLD WILL EXPLODE!

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

The Federal Reserve is Repeating its WORLD WAR II Strategy

Last week, Federal Reserve Chairman Jerome Powell UNLEASHED A TORPEDO on the global economy by suggesting that the FED is now OPENLY DISCUSSING what’s known as yield curve control.

I want to make sure that you FULLY UNDERSTAND how outrageous this is: the last time it was implemented was during wartime, and not just any old war, but the big one – WW2.

When the U.S. economy was GRAPPLED WITH the threat of a Japanese invasion and the country’s efforts focused on what was going on in Europe, the central bank CONTROLLED the yield curve in an effort to make sure Treasury yields weren’t SPIKING and you can see what happened below:

Courtesy: Voima, Bloomberg

As you can see, when the Federal Reserve implemented this type of tactic, interest rates WENT DEEPLY NEGATIVE.

In 2020 alone, Washington’s expenses WILL DWARF its income by $4,000,000,000,000. That’s not A TYPO. The deficit is now an OPEN SECRET.

Just to give this context, the deficit COMES OUT to around 14% of GDP this year, which will further SPEED UP the period of time when the public and the political class BEGIN DEBATING the national debt and whether or not it is costing more than it is ALLOWING – pros versus cons.

In other words, there’s a number, and no one knows what that number is since economists HAVE BEEN SCREAMING to stop the spending party for decades, which is just TOO BIG, even for the American economy.

When the Federal Reserve LAST FEARED rising rates would bring the economy down to its knees in 1942, it implemented this strategy of yield curve control.

Under the Bretton Woods Agreement, every ounce of gold was priced at $35 (since 1944) while the world assumed that the reserves held by Washington would be sufficient to keep this convertibility in check.

As you can see above, IT COULDN’T and inflation soared both in the 1942 through to 1943 (before the dollar was pegged) and after in 1947 and 1948. Gold SURGED!

While the media is busy CONVINCING THE PUBLIC that there’s an imminent 2nd wave underway because it serves in furthering some BULLSHIT AGENDA, the real threat lies in not CAREFULLY UNDERPINNING the risks of allowing Jerome Powell to make judgment calls based on the knowledge the bank has.

Courtesy: Zerohedge.com

What this chart SCREAMS is that there is no GETTING BACK to it yet.

Yields are signaling that whatever we have entered on a global scale, but PARTICULARLY IN THE U.S., is something new.

If we are somehow able to avoid having either AN INFLATION SHOCK or a FULL-ON SOCIAL REVOLT, the only other possibility is a CURRENCY RESET.

It is NOT FARFETCHED to contemplate the idea of gold going above $2,000/ounce between now and the elections or the first few months after it, which may result in REAL PROBLEMS coming to surface.

Courtesy: Zerohedge.com

As you can see, because testing IS RAMPING UP, the media will FRIGHTEN the viewers, but the truth is that the FACTS are overwhelming the nonsense.

Let’s solve the economics of this while we practice the necessary hygienic requirements, but DON’T FALL PREY to intimidation.

The data is clear: this is not A HEALTH CRISIS that demands any DRACONIAN MEASURES or loss of liberty!

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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CONGRATS POWELL: Reflation Playbook – OWN GOLD STOCKS!

This article was contributed by Tom Beck of Portfolio Wealth Global.

JUST NOW, America is starting to grapple with the ENORMOUS TRAVESTY that it has still yet to face in the months ahead.

Up until now, there was MISPLACED HOPE that this could all be just seasonal flu and there were BAILOUTS and helicopter money to help float the losses a while longer, until re-opening, but that bubble is popping; coronavirus is here to stay in our lives. For most, it won’t be a health issue, but more of a lifestyle/financial one.

From here on, it’s PURE PAIN, as we all adjust our lives to this. I hate to say it, but the numbers SPEAK FOR THEMSELVES:

  1. April retail sales collapsed to record lows, on a month-to-month basis.

 

  1. April industrial production plunged by 11.2%, which is the worst month-to-month drop since 1919.

 

  1. Capacity Utilization collapsed to a record low 64.9%, which means that America’s GDP is falling off a cliff right now!

 

Courtesy: Zerohedge.com

We have NEVER SEEN anything like this; it’s the price of SHUTTING DOWN the economy and of social distancing. It’s the price of re-arranging the lives of billions of people.

My biggest concern is that the consumer polls show that their outlook is PESSIMISTIC, which means that whatever the private sector leaders and government do in the days ahead, IT BETTER BE FAST and it better be CORRECT.

We are past the point of making errors.

People’s livelihood, dignity, future prospects, mental health, physical health, and peace of mind are at stake.

Do not wait for the government; whatever you do, strike out of your calculations the aid you will receive – think of it as the cherry on top, but don’t use it to make financial decisions. If you need additional income sources, FIGURE IT OUT fast. There are many ways to earn an extra $100-$300 a month online, starting this second.

Courtesy: Zerohedge.com

We will continue to see central banks monetizing debt; we will continue to see GOVERNMENT BONDS issued at a larger scale than what the central banks can buy – this is the GOURMET RECIPE for gold to reach new highs, above $2,000/ounce.

Newmont Mining, Barrick Gold, Yamana Gold, Equinox Gold, Alamos Gold and MANY OF THE OTHER world-class gold companies are trading at or NEAR all-time highs!

All of the above are COMPONENTS of the GDX index and some are also listed on the GDXJ index as well. We are part of the breakout and making GREAT RETURNS.

These indices are a ONE-STOP shop to trade in the sector. They are both the equivalents of the S&P 500 or the Russell 2000 indices for traditional stocks.

Courtesy: Zerohedge.com

Gold is in a BULL MARKET!

In the past weeks, silver has been closing the gap.

These are the telltale signs of IMPROVING CONDITIONS for the sector, in general.

In the past few years, since 2016, owning a basket of gold stocks, like the GDX, or owning the top-quality miners, has been WILDLY PROFITABLE.

Investors have ignored mining stocks, though. The sector is UNDER-WEIGHTED in most portfolios.

Courtesy: Zerohedge.com

20 years ago, investors also WERE IN LOVE with the tech giants and with innovation, in general – as they are today.

Many of these companies are INCREDIBLE success stories, but we have to remember that the timespan it takes to get a mine from discovery to production now approaching TWO DECADES, peak gold is REAL.

Companies that own PROVEN, VERIFIABLE resources, both Measured & Indicated and even Inferred, are sitting on VALUABLE REAL ESTATE for these giants mentioned above, who are ready to make ACQUISITIONS.

Other commodities, which are essential to our everyday lives, are also reaching peak production.

When the industry is making big profits, the giants bid for the quality juniors.

The time to position IS NOW!

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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$2,100 Gold: Middle-Class Verdict – DEATH ROW INFLATION!

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

Inflation is being HELD CAPTIVE at the hands of gold. On Friday, both the EURO and the BRITISH POUND hit ALL-TIME LOWS relative to gold. That’s another way of saying that in the Eurozone, as well as in the U.K., you’re shit out of luck if you held your excess savings in fiat currency because it COST YOU in a big way. Put differently, gold hit all-time highs, in both Euro and the Pound.

On September 5th, 2011, the nominal price of gold in U.S. dollars hit its all-time high of $1,917, subsequently falling all the way to $1,053, only to climb back up, now reaching $1,755/ounce.

Another 10% gain would have the dollar-denominated ounce at $1,930 (an all-time high). This can ACTUALLY happen before the end of this calendar year.

Courtesy: AdvisorPerspectives.com

About 18% of global GDP, or 70% of America’s GDP, is tied to consumer spending. Right now, the average American is losing confidence in the economy, as you can see. They are uncertain that they’ll make their next debt payments (utilities, rent, mortgage, auto loan, credit card, student loan, and other obligations), mostly because their job is UP IN THE AIR or their business is standing on SHAKY GROUNDS.

When COVID-19 first reached American soil, the panic was largely due to the health aspect of it. The authorities feared the SYSTEM of hospitals couldn’t handle the load of ventilator-needing patients, so it rushed INTO A FRENZY of apocalyptic decisions, which took a massive toll on the economy, as well as on our LIBERTIES and constitutional rights.

As you can see above, consumer confidence PLUMMETED from a 19-year high last seen near the turn of the century, right before the Dotcom bubble burst and the 9/11 tragedy.

It’s now in line with the later stages of the 2009 recession but it will get MUCH WORSE before it gets better.

The reality is that we still don’t know MANY FUNDAMENTAL THINGS about COVID-19. Until we learn more, this is SIMULTANEOUSLY a health crisis and an economic PREDICAMENT.

This whole FIXATION with a vaccine is the wrong way to approach SOLVING the problems, and it will lead us up many DEAD ALLEYS. Therefore, I want to stress that while the government has an IMPORTANT ROLE in communicating a coherent message about the policies and direction it will take, the private sector will, AS ALWAYS, lead us out of this mess.

We need to find an IMMEDIATE STRATEGY for parents whose children aren’t getting back to school yet. Parents who are not being productive are both deteriorating in an economic sense, as well as mentally. We will have a national tragedy if an adequate solution isn’t implemented at once.

The elderly, the immune-compromised, or those who simply fear the virus need a solution as well. They need to be looked after until we know more about COVID-19.

Those who want to GO BACK to work and return to living a full life should be allowed to do so under the constitution; it is ABUSE OF POWER to interfere with people’s basic rights. As with the Influenza breakout of 1918, the Spanish Flu, we absolutely know that the simple act of wearing a mask helps in not spreading the disease. Washing hands for about 20 seconds frequently and properly is another easy habit to implement. Being physically distant from others by a couple of steps is another practice that is becoming part of the norm. Lastly, BEING OUTSIDE instead of confined is actually proven to be 1,900% SAFER.

Being out is SCIENTIFICALLY BETTER.

A vaccine isn’t the MAGIC PILL that Bill Gates and the rest of these supposed health experts are drooling over; we need to ADJUST now, as in today, to the new behavioral habits and go back to being productive.

Otherwise, this CRISIS hasn’t even BEGUN!

Because of this uncertainty, we see an opportunity with gold that’s UNPRECEDENTED, and we don’t have to wait TO SEE PROFITS – we’re making them hand over fist.

Gold is headed to $1,917, at which point it will make the news, creating an avalanche of retail demand that will take it over $2,000/ounce, creating MORE NEWS, which will take it even higher.

Be ready to EXIT POSITIONS as well. Gold and gold stocks are CYCLICAL.

EXCLUSIVE REPORTS, Featured In This Article and in Others, Which Are Considered ESSENTIAL READING:
1. Gold Investing – DOWNLOAD HERE!
2. Trump’s War with Mainstream Media – DOWNLOAD HERE!
3. Covid-19 Round2 Sell-Off Playbook – DOWNLOAD HERE!
4. Why The Dollar Is Dead – DOWNLOAD HERE!
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SAYONARA RECOVERY: Virus Outbreaks Return – GOLD KAMIKAZE!

This article was contributed by Tom Beck of Portfolio Wealth Global. 

Clouds of Uncertainty – The World Awaits Re-Opening

Take a DEEP BREATH; whether you are like me and believe that the BEST COURSE OF ACTION is to protect the elderly and the immune-weakened, while the rest of us continue BUILDING our lives, unleashing the full power of ingenuity towards alleviating the suffering and fear of the compromised, so they can ALL return to normalcy – or – whether you’re of the opinion that everyone should stay at home, the fact remains that the PANIC PHASE is behind us. Now it’s time to defeat it COMPLETELY!

Things aren’t going back to normal anytime soon, though. Most people, even if they feel safe themselves, have families to consider. Going about your day as normal has now become a biological crime, a politicized topic.

Many grandchildren, sons and daughters aren’t visiting their parents and grandparents and I do expect that to continue for a while.

Malls have opened in many places, but consumers choose to STAY AWAY, even though the owners are making EFFORTS to keep the compounds sterile and clean.

We can’t just SNAP THE FINGER and go back to normal is my point.

Courtesy: Zerohedge.com

This is where the above chart COMES IN. About 18M Americans, who represent roughly 12% of the workforce, believe that they’re only TEMPORARILY out of a job. In other words, out of the 38M who are currently officially unemployed, more than half believe it’s a PASSING PHASE.

These are STAGGERING numbers of people, who are presently not being productive in the marketplace.

Just 20 years ago, in the year 2000, the federal debt to GDP ratio stood at 58%. It has DOUBLED since then, sitting at 117% right now.

As you know, once a country goes above that 100% THRESHOLD, it is considered a banana republic of sorts.

The debt per taxpayer is $202,531 and the debt per citizen is $76,279. The official budget deficit for 2020 is OVER $2.1T and rising!

Courtesy: Zerohedge.com

We need to understand why it is that Warren Buffett isn’t PULLING THE TRIGGER. We know it’s not because he shies away from buying after major dips. His biggest winners were American Express, bought right after the Oil Salad Scandal; GEICO, bought after bankruptcy; Coca Cola, bought after 1987; Wells Fargo, bought in the 1990 recession and The Washington Post, bought during the 1970s recession.

Clearly, Buffett isn’t scared of turbulence. If he isn’t buying, it’s because prices are TOO HIGH, not because he feels the world is ending.

I’m not saying that there is NOTHING ATTRACTIVE out there, only that the market itself is DECOUPLED from reality.

Personally, I’m following the guidelines I’ve set and purchasing according to the WATCH LIST.

This past Friday, the worst-ever unemployment report came out, yet markets rallied. These moves mean that investors are, as a whole, CLUELESS about the lurking danger.

As countries re-open, some cities, states, and countries will panic and DECIDE TO resume Stay-At-Home measures.

Courtesy: Zerohedge.com

Bond yields CLEARLY REFLECT that investors are questioning the SWIFT REBOUND.

Huge sums of money are being loaned to the Treasury at the lowest-ever interest rates. This tells me that big players are attempting to RIDE OUT THE STORM, remaining liquid, so they can dance on the graves of the weak, who will get shaken out. CLEARLY, the most sophisticated money managers anticipate FALLOUT of epic proportions.

I’ve heard from highly REPUTABLE SOURCES that some believe they will not need to purchase businesses from others, but will be given them FOR FREE, as owners will only seek to be employed in the enterprise they once owned and rid themselves of the liabilities.

These predictions don’t make me happy.

In the next 12-18 months, your ability to WITHSTAND adversity, to see years of hard work go down THE TUBE, will be tested.

I can’t stress enough how valuable it is to own GOLD in times like these.

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DRAGGED THROUGH THE MUD: Market Pain ACCELERATING!

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

We have ZERO CERTAINTY when it comes to what’s going to occur on the health front with most countries opening up their economies and returning to normal, using new restrictions to keep hygiene habits in place and social distancing, but we have PLENTY OF CERTAINTY on the investment front.

What’s certain is the LIMITED UPSIDE in stocks!

In other words, what we believe to be 100% TRUE is that we are in a bear market range that will be WIDE, from 2,350 on the low end (unless new horrors are introduced) to 2,900 on the high end (unless breakthrough cures are discovered).

As investors, this offers us the OPPORTUNITY to build generational wealth by positioning in LESS IMPACTED sectors when there’s a lot of drama in the markets and we trade close to the lower spectrum of the range.

Courtesy: Zerohedge.com

When we entered the 2008 recession, it lasted much longer IN PEOPLE’S MINDS than it did in the data. As we see it, the OPPOSITE is occurring today. Too many business owners and investors don’t yet realize just how SCREWED UP things really are.

In the chart above, you can see the costs of this health crisis on the financial front. Again, we can debate all we want about whether or not the Federal Reserve should be this aggressive or if Washington should be intervening in the economy as much as it has, but one thing NO ONE CAN DEBATE is that the money lost by derailing the global economic train and then putting it back on the track is UNPRECEDENTED.

Gold, therefore, is VERY CRITICAL to own, and that’s why we anticipate its price reaching WELL ABOVE $2,000/ounce. More importantly, we anticipate it performing BETTER than common stocks!

Most people are in cash right now, which is a CORRECT stance to take with everything that’s going on, but we want to come out of this COVID-19 nightmare STRONGER, not just barely scraping by.

Gold is our SECRET WEAPON for achieving that goal. Your neighbor doesn’t own ANY and probably never will, but you can INCREASE your chances of gaining REAL purchasing power by saving in precious metals instead of in fiat currencies.

The first wave of bankruptcies hasn’t even occurred. Defaults have largely been avoided so far but the rubber is going to meet the road soon.

The BAILOUTS held the onslaught back, but while we don’t know if the virus is coming back for a SECOND WAVE, we do know that the economic SHIT-SHOW will.

Courtesy: Zerohedge.com

U.S. GDP is contracting at a rate of $1,000,000 every 12 seconds while the national debt is RISING by that amount.

We’re adding debt while losing productivity.

It doesn’t really matter who is to blame for this virus when it comes to making money or PRESERVING CAPITAL.

The markets are DETACHED so much because they’re ARTIFICIALLY INFLATED. That’s the point that Warren Buffett was making in his annual meeting about the Federal Reserve. What he said was that he thanked Chairman Powell for understanding the gravity of the CREDIT FREEZE in March but that while saving the global economy from the abyss was the right thing to do, the COST OF DOING IT through these Keynesian-type bailouts are so unprecedented that even he and Munger are now CASH-HOARDING instead of BARGAIN-HUNTING.

Think about waking up tomorrow with $128 billion in cash that you can use and CHOOSING to do NOTHING with it!

That’s a statement that should RESONATE with investors across the board. Buffett, who is a child of the Great Depression, was witness to Pearl Harbor, lived through the Korean War, Vietnam War, the oil shock, 1987, 1998, 2000, 2008, 2016, and 2018, does not believe WE’RE ANYWHERE NEAR the end of this recession.

Buffett isn’t going to buy gold, but I MOST CERTAINLY will!

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DRAGGED THROUGH THE MUD: Market Pain ACCELERATING!

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

We have ZERO CERTAINTY when it comes to what’s going to occur on the health front with most countries opening up their economies and returning to normal, using new restrictions to keep hygiene habits in place and social distancing, but we have PLENTY OF CERTAINTY on the investment front.

What’s certain is the LIMITED UPSIDE in stocks!

In other words, what we believe to be 100% TRUE is that we are in a bear market range that will be WIDE, from 2,350 on the low end (unless new horrors are introduced) to 2,900 on the high end (unless breakthrough cures are discovered).

As investors, this offers us the OPPORTUNITY to build generational wealth by positioning in LESS IMPACTED sectors when there’s a lot of drama in the markets and we trade close to the lower spectrum of the range.

Courtesy: Zerohedge.com

When we entered the 2008 recession, it lasted much longer IN PEOPLE’S MINDS than it did in the data. As we see it, the OPPOSITE is occurring today. Too many business owners and investors don’t yet realize just how SCREWED UP things really are.

In the chart above, you can see the costs of this health crisis on the financial front. Again, we can debate all we want about whether or not the Federal Reserve should be this aggressive or if Washington should be intervening in the economy as much as it has, but one thing NO ONE CAN DEBATE is that the money lost by derailing the global economic train and then putting it back on the track is UNPRECEDENTED.

Gold, therefore, is VERY CRITICAL to own, and that’s why we anticipate its price reaching WELL ABOVE $2,000/ounce. More importantly, we anticipate it performing BETTER than common stocks!

Most people are in cash right now, which is a CORRECT stance to take with everything that’s going on, but we want to come out of this COVID-19 nightmare STRONGER, not just barely scraping by.

Gold is our SECRET WEAPON for achieving that goal. Your neighbor doesn’t own ANY and probably never will, but you can INCREASE your chances of gaining REAL purchasing power by saving in precious metals instead of in fiat currencies.

The first wave of bankruptcies hasn’t even occurred. Defaults have largely been avoided so far but the rubber is going to meet the road soon.

The BAILOUTS held the onslaught back, but while we don’t know if the virus is coming back for a SECOND WAVE, we do know that the economic SHIT-SHOW will.

Courtesy: Zerohedge.com

U.S. GDP is contracting at a rate of $1,000,000 every 12 seconds while the national debt is RISING by that amount.

We’re adding debt while losing productivity.

It doesn’t really matter who is to blame for this virus when it comes to making money or PRESERVING CAPITAL.

The markets are DETACHED so much because they’re ARTIFICIALLY INFLATED. That’s the point that Warren Buffett was making in his annual meeting about the Federal Reserve. What he said was that he thanked Chairman Powell for understanding the gravity of the CREDIT FREEZE in March but that while saving the global economy from the abyss was the right thing to do, the COST OF DOING IT through these Keynesian-type bailouts are so unprecedented that even he and Munger are now CASH-HOARDING instead of BARGAIN-HUNTING.

Think about waking up tomorrow with $128 billion in cash that you can use and CHOOSING to do NOTHING with it!

That’s a statement that should RESONATE with investors across the board. Buffett, who is a child of the Great Depression, was witness to Pearl Harbor, lived through the Korean War, Vietnam War, the oil shock, 1987, 1998, 2000, 2008, 2016, and 2018, does not believe WE’RE ANYWHERE NEAR the end of this recession.

Buffett isn’t going to buy gold, but I MOST CERTAINLY will!

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MEETING ADJOURNED: Market Turbulence – WAKE-UP STAT!

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

COVID-19 is a MID-BLOWING, government-sponsored ECONOMIC EXPERIMENT in many ways. Without a pandemic, no country would ever ELECT to VOLUNTARILY shut down its economy in order to learn from that kind of event and see what it does to society.

Why would a functioning country the size of the United States, which produces over $21 trillion in GDP, sentence itself to FINANCIAL SUICIDE like that, RIGHT?

In 2020, though, governments made decisions that are BIGGER AND GREATER than just pure mathematics. It could be and very well MIGHT BE true that the cure, so to speak, which means the price of social distancing and closing down large segments of the economy, is greater than the disease IN MANY PEOPLE’S MINDS.

The disease revolves around human lives, which are IMPOSSIBLE to assign a value to. In some countries, the life of a person isn’t VALUED as much, but in most modern nations, it is INCONCEIVABLE to allow 10%-20% of the general population (60-year-olds and up) to risk dying from a virus that could be PREVENTED by taking drastic yet DOABLE MEASURES.

One of the world’s HIGHEST-PAID advice-givers, an institution that sells financial commentary only to sometimes BET AGAINST its own clients, Goldman Sachs, which is one of Wall Street’s LEAST-FAVORITE companies, is now pounding the table on the fact that FAAMG stocks (Facebook, Amazon, Apple, Microsoft, and Google) have become TOO VALUABLE compared with the other 495 components of the S&P 500.

Microsoft is the most valuable enterprise the world has ever known, worth $1.32T, followed by Apple’s $1.32T market cap and Amazon’s $1.14T price tag, while both Google ($900B) and Facebook ($576B) are the sub-trillion members of this group.

The collective price of the ENTIRE INDEX is $28.1T.

Courtesy: Zerohedge.com

What Goldman Sachs is arguing is that the market is TOO CONCENTRATED, showing the return of these 5 stocks versus the rest of the index.

The big eat the small in crisis times, and that’s what markets might be pricing in.

What my research IS SHOWING is that Goldman Sachs’ calls have been mostly WRONG during the entirety of the COVID-19 PANDEMIC.

For one, the BEST-PERFORMING stock of the S&P 500 in 2020 is actually NEWMONT MINING, the largest gold miner in the world. Its stock is up 40%, year-to-date.

Amazon is the 8th best performer, up 23.71%, while Microsoft is 26th, up 10.7%. Google, Facebook, and Apple are ALL DOWN in 2020: -1.23%, -1.45%, and -1.56%, respectively.

Therefore, Goldman Sachs isn’t your YARDSTICK!

If the market crashes, it will have nothing to do with its CONCENTRATION because these 5 behemoths aren’t trading for BUBBLE VALUES.

Courtesy: Zerohedge.com

Other camps of bears include the CHART PLOTTERS, which make the overlay of how the Dow Jones traded in the Great Depression versus how it is PRESENTLY MOVING.

Don’t make those assumptions, either.

In 1929, the Federal Reserve reacted MUCH DIFFERENTLY than it did this time. On top of that, 4,000 local banks WENT UNDER. Investors were up to their eyeballs in margin calls since they were leveraged.

The Great Depression ISN’T AN ADEQUATE comparison either, then.

In 2020, we took a bullet train (U.S. economy) and we DIDN’T derail it (2008), simply forcing it to STAND STILL (knowingly shutting it down). That’s unprecedented and DISRUPTIVE, creating plenty of unknowns (habits are changing), but if you’re going to form a short-term (1- to 3-year) BEARISH WORLD VIEW, do it on the premise of the likelihood that COVID-19 will force economies to CLOSE AGAIN (what happened in Japan, for example).

Reopening is PRICED IN but RE-CLOSING is not.

That is my BIGGEST CONCERN.

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Tipping Point: The National Debt Will Exceed GDP This Year

Economists have often said the total collapse of the economic system will occur when total debt exceeds that of a nation’s gross domestic product.  That milestone will be reached later this year.

Thanks to the government’s overreaction to the coronavirus outbreak, the economy is destroyed, people are banned from making a living, and the national debt has skyrocketed putting the United States on an accelerated path to ruin.  The Committee for a Responsible Federal Budget now projects that, as a result of the government’s demands that the economy be closed while people go on an indefinite house arrest, debt held by the public will now exceed GDP by the end of this fiscal year. By 2023, the debt will top the record 106% of GDP set after World War II, according to report by the Fiscal Times. 

This is the worst news anyone in the middle class could get.  A $1200 stimulus check isn’t going to be nearly enough to bail out Americans, 78% of whom are already living paycheck to paycheck. Some may be able to buy food, but only temporarily.  The government has made sure that those who are already struggling financially will suffer the most in the upcoming months.

CRFB says the budget deficit will rise from about $1 trillion last year to $3.8 trillion (nearly 19% of GDP) this year and $2.1 trillion (about 10% of GDP) in 2021 — and the group adds that those projections “almost certainly underestimate” the deficit totals since they assume Congress doesn’t enact additional coronavirus aid or change current tax and spending laws. If the economy doesn’t recover strongly next year or bounce back fully within a few years, the budget watchdogs project that debt would climb to 117% of GDP by 2025.The Fiscal Times

People in what was once called “the land of the free” were asked to give up their hopes, dreams, livelihoods, and liberty in exchange for a false sense of security.  And most fell right in line like the good little brainwashed puppets the government wants. If you are not concerned about the path humanity is on at this point, you’re delusional.

The coronavirus was an excuse to panic the public into giving up their rights so the elitists could conduct the biggest wealth transfer in history from the now impoverished masses to themselves.

CRFB wants people to avoid questing the government’s response too.  Try to not think for yourself and look at what is really going on, say the elitists of the world.  “Like the record levels of borrowing undertaken during World War II, a large share of today’s massive deficits are both inevitable and necessary in light of the current pandemic crisis,” the group says. But it warns that eventually, “such high and rising deficits and debt levels will prove unsustainable, and corrective action will be needed.”

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FEDERAL HEIST: Government Burglary – GOLD ROCKETING!

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

I’ve been publishing economic and financial commentary for years and consider TODAY’S LETTER to be one of my top 10 most important alerts EVER.

The coronavirus has made it ABUNDANTLY CLEAR that the federal government in D.C. and the Federal Reserve are never going to allow the U.S. economy to suffer through a dollar deflation event if they can help it.

They will walk over HOT COALS and will BEND every rule in the book in order to put money in the pockets of the SYSTEMATICALLY-important institutions and there’s no greater example of it than the chart below.

America is a DUALITY and two conflicting forces create the drama of the free markets.

On one hand, America’s economy is built on CONSUMPTION. About 70% of its GDP is determined by the average American’s shopping habits.

That’s not what creates job growth, though… the innovation and power of the individual to launch a small business and hire employees does.

More than 50% of S&P 500 companies’ earnings are foreign-sourced.

Therefore, the powers-that-be aren’t about to let corporations run low on liquidity. When they see the bids drying up, they will swoop in like a HUMPBACK WHALE:

Courtesy: Zerohedge.com

 

When the bond bubble burst into OBLIVION, the Federal Reserve started buying. The following day, all of the short positions disappeared.

Our markets are free, but only to an extent; it’s not PURE CAPITALISM anymore. When your competitor is having a heart attack, the U.S. Government and its tentacles will not let you dance on their hospital bed and capitalize.

“DON’T FIGHT THE FED” is the mantra of the 21st century. More importantly, don’t DARE to fight Washington.

This isn’t to be construed as standing down and bowing to tyranny, but rather refers to the INVESTMENT world. Neel Kashkari, president of the Minneapolis branch of the central bank, told us time and again that they’re not going to err on the side of caution this time.

The U.S. Government is also not HOLDING BACK while entering the most important two-week period of the COVID-19 “stay at home” medical policy. We are looking at stimulus packages of UNPRECEDENTED proportions.

Courtesy: Zerohedge.com

The world’s largest economies are currently successful at DEFEATING both the panic and the curve of new infections, which means that by the end of April, guidelines might begin to relax. This is combined with the hotter weather of spring, which will help stop the infection before the 2nd wave of October re-emerges.

By then, thanks to the work of medical device companies, we will have probably tested most of the population.

Still, the impact of this sustained period of QUARANTINES is certainly not quick to pass. Therefore, we will have a few years of less than STELLAR earnings, which is always one of the CRUCIAL catalysts of great returns for gold stocks.

Since markets are forward-looking, I give us a maximum of 24 months before the clear trend emerges.

Courtesy: Zerohedge.com

Not until 2023 will earnings per share go back to 2020 levels, and that’s OUR WINDOW of capitalization on gold and on mining, in general.

During this period, we expect roughly $1.8 trillion TO FLOW into gold, which will take its price to an estimated $3,400/ounce, conservatively.

All else being equal, I’m going to invest in best-of-class gold companies, which ought to deliver SPECTACULAR returns, but the 1,000% gainers are the ones that will either make discoveries or meaningfully de-risk their development-stage assets.

Of course, the crown jewels will be the companies that are BOUGHT OUT!

The most important obstacle is to break gold’s previous all-time high in dollars terms. That will spark the MANIA.

GOOGLE Is Doing Whatever It Can To De-Monetize us And Shadow-Ban us. During these TOUGH financial times, we ASPIRE to stay completely independent and pay our full staff, so we can continue to deliver VALUE to you. It is possible for you to HELP us, by supporting our COVID-19 expert survival report HERE! 
 
Thank You, ShtfPlan.com Staff
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