Recapping Powell’s comments and the wild market reactions
On the back of Powell’s statement at the virtual Jackson Hole meeting we saw some wild swings in gold, the US Dollar and Us treasuries. The markets are the one area that just kept moving higher.
Chris Temple joins me to share his thoughts on the “new” Fed policy and the market swings.
The Fed’s story is always the same. Print, print, print.
The money of the Bible is Gold and Silver.
This is the money of God, the Divine.
Once you accept this prophecy, you will begin to understand the financial machinations of the World.
Once you put your faith in God and not the man made financial manipulation of this World, you will begin to understand what it means to be alive and you will begin to appreciate the beauty God has afforded you.
Insider stock sales and CEOs checking out are at the highest level since 2006:
This does not augur well for the future.
I believe I just heard Chris in so many words say that Powell’s thoughts and opinions are still the controlling power in this major economic struggle. I don’t necessarily buy that. The subject Chris didn’t touch on was the dollar. Printing and keeping interest at compressed levels can’t make the dollar popular. True, for now folks are throwing their money at traditional stocks……betting on 2021 income improvements. The income is already there and will continue with many of the gold miners. I’ll stick with the one in hand as opposed to the two possible in the bush!
The Gold and Silver miners will be some of the best income generating businesses (finally), when most businesses are spiraling down the drain. Even generalist investors are waking up to that new reality.
As a result I’m not anticipating mining to get “whacked down 30%-40%” as Mr T laid out, when they’ve finally started printing money. If anything generalist investors will start to notice the emperor is wearing no clothes with hospitality businesses, retail, small caps, and banking. That is why Buffet sold off financial stocks and bought a producing gold company– for the incoming cashflows versus their net present value.
After 5 months of shutdowns all over the country, riots and looting gutting the downtown businesses of almost every major city, millions out of work and forced home, and a shift in buying habits, lack of personal or business travel, hotels vacant, restaurants closed of at half capacity, bars folding up, sports canceled, music and arts events non-existant and an ordering of online goods instead of traditional shopping…. then anyone that doesn’t see the writing on the wall that there are severe dislocations coming to the economy (despite the recent hopium for a V-shaped recovery) is delusional. The precious metals have not peaked yet, but the economy as we know it has and is now fundamentally changed.
If anything, with all the new trading accounts that have opened since March, there is a much bigger pool of hot money chasing stocks now than there has been in years. Those investors are chasing things like vaccine stocks & biotech, new technologies,, and some of them have already been show in swelling Robinhood stats to be chasing mining companies that are printing money with these higher metal prices.
The dollar weakening is no show of strength for the US economy either, and many foreign nations are looking for other ways to trade their durable goods and not receive US IOUs with negative real rates.
We are already in a stagnation period, despite Powells characterizations and central banker lies to put lipstick on the pig of the US economy, and yes their recess money printing will eventually be quite inflationary, which is precisely why Powell announced he wants inflation to run hotter — he knows it is coming… and this time (unlike 2009-2019) it won’t all be contained to general equities doing the inflating. The dollar us falling and not strong like it was over the last decade.
Be prepared for a very bumpy ride, and the PMs will do well in that environment.
recess = recent
us = is
Well put. Thanks for the additional points. Now I’m really convinced!
We are in a totally new chapter now that the world has never seen, and sailing in turbulent uncharted waters. What better time is there ot have some capital in safe havens?
Various European countries are going to goback into full lockdown mode….France, with Paris in lockdown already.
Coronavirus live news: France records post-lockdown record of 6,111 daily cases; 1,411 test positive in Italy.
France wants a partial school shutdown only.
The United Natons children’s agency says at least a third of children couldn’t access remote learning when the COVID-19 pandemic closed schools, creating “a global education emergency.”
At the height of lockdowns meant to curb the pandemic, nearly 1.5 billion children were affected by school closures, UNICEF said.
‘Testing positive’ is a meaningless concept if you are not ill or in hospital, if we had herd immunity most people would test positive (if the tests were accurate)
The standard PCR test for covid-19 tests for presence of viral parts, not for presence of antibodies in the blood.
For people that catch covid-19, they will usually test negative again after 30-45 days.
Children who get covid-19, but have only a small viral load and remain asymptomatic usually test negative again within 21 days.
The Scamdemic probably won’t go on much longer as people are waking up all over the world to the COVID-1984 hoax. There’s 1,000 German doctors calling it a Scam, and they be investigating it themselves since governments and the controlled media won’t investigate the Scam. https://fromrome.info/2020/08/24/1000-german-doctors-say-covid-19-is-100-a-scam/?fbclid=IwAR37h45GvzSABK7-4JKEajXWEZkNV8MBBUsAxexXRvnQTenX_DTBvS4UKME
Well I for one didn’t think Powell’s speech said anything that we didn’t already know. Therefore I fail to see how it will have any lasting impact on either the stock or PM markets for more than a few hours.
Agreed. Nothing was a surprise, just more of the same…
Ditto……..Only one Plan……Print…..
The Dawn of Chaos: Central Banks and the Dollar (w/ Hugh Hendry and Luke Gromen)
Real Vision Finance – Aug 11, 2020 #VIDEO Discussion
https://www.youtube.com/watch?v=KUP8KVvZaoI