2020 -The perfect storm
July 27, 2020 at 8:41 pm
(This post was last modified: July 27, 2020 at 9:09 pm by ignoramus.)
I'm thinking this will be the year from hell. (Most of us probably feel it already is).
Trade tensions with China are escalating.
Unemployment at record highs
Wages at record lows
Interest rates at record lows -In the GFC the US govt dropped rates 5% to kickstart the economy. No more ammo.
Personal debt (incl credit card, car loans, mortgages and student loans), corporate debt and govt debt at world record levels.
US treasury yield on 3 month, 2 yr, 5yr, 10yr and 30 yr at all time low returns
US dollar crashing (relative to other world currencies)
Lots of social unrest
Record business closures
Medical pandemic
Let's pray this cold war doesn't turn hot. (13 of the last 18 throughout history have!)
Where do investors put their money? In a artificially overinflated stockmarket completely disconnected from the real economy?
(EG: just look at the PE (price to earnings). Tesla is the most valuable car company in the world today and are yet to make a profit?
Toyota who netted over 1b profit last year are #2
)
Only one thing left to invest in. Something with 5,000 years of history as a safe haven and store of value with no third party risk.
Gold and it's poorer brother Silver are on their way to the moon. Gold smashed record levels (2011) today and Silver won't be far behind.
Thoughts on where we'll be by the end of the year? I'll be living under a bridge fishing for dinner! Who wants to join me? (bring your own fishing rod and Nuka Cola please)
Trade tensions with China are escalating.
Unemployment at record highs
Wages at record lows
Interest rates at record lows -In the GFC the US govt dropped rates 5% to kickstart the economy. No more ammo.
Personal debt (incl credit card, car loans, mortgages and student loans), corporate debt and govt debt at world record levels.
US treasury yield on 3 month, 2 yr, 5yr, 10yr and 30 yr at all time low returns
US dollar crashing (relative to other world currencies)
Lots of social unrest
Record business closures
Medical pandemic
Let's pray this cold war doesn't turn hot. (13 of the last 18 throughout history have!)
Where do investors put their money? In a artificially overinflated stockmarket completely disconnected from the real economy?
(EG: just look at the PE (price to earnings). Tesla is the most valuable car company in the world today and are yet to make a profit?
Toyota who netted over 1b profit last year are #2
)Only one thing left to invest in. Something with 5,000 years of history as a safe haven and store of value with no third party risk.
Gold and it's poorer brother Silver are on their way to the moon. Gold smashed record levels (2011) today and Silver won't be far behind.
Thoughts on where we'll be by the end of the year? I'll be living under a bridge fishing for dinner! Who wants to join me? (bring your own fishing rod and Nuka Cola please)
No God, No fear.
Know God, Know fear.
Know God, Know fear.
