Mike Larson – Late Cycle Assets Continue To Preform But That Doesn’t Mean A Recession Is Imminent

April 21, 2022

Mike Larson, Editor of The Safe Money Report joins me to focus on the sectors that continue to outperform this range bound market. As Mike points out late cycle sectors, like utilities, staples and precious metals continue to trend higher. The high flying sectors and stocks like tech continue to struggle and Netflix earnings report disappointment really hit the stock. We tie this market action in the growing calls of a recession right around the corner.




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    Apr 21, 2022 21:31 AM

    Looks like gold and silver are finally reacting to higher bond yields and a crashing yen.

    Only the BoJ and Fed know when and where this game ends.

    Even I am a bit surprised by the magnitude of the hit silver is taking today. Needless to say, the notion that it will be breaking through $26 anytime soon just took a massive hit today. The next two months could be rather painful. I think June will likely mark the next major low.

    I think the rest of this year is going to be a slog. The small cap silver miners, like IPT, have been suggesting this for a year. If silver was on the cusp of breaking above $28 there is no way they would be so weak.

    Maybe silver can begin a run to $28-30 after July. I don’t think it will get through that resistance until late in the year or possibly as late as spring 2023 though.

    Apr 21, 2022 21:38 AM

    absolutely no place to hide. Gold continues to hold water while even the majors taking hits. Same old with all juniors in spite of all the bullish take from a parade of drum beaters. Getting close to putting some money into this thing once again. Rather than a call play on majors this time around some of the beleagured juniors which can act as surrogate as options with no expiry an time erosion worry. We’ll see if we get a breach of 1900.
    Some of the uraniums may be also be a place to place a bet with another couple of days like today.
    Waiting for savage to go negative as he’s been buying this thing all the way down with recent posts. The guy who’s never wrong, as the mantra is ‘could go up but then again might go down”

      Apr 21, 2022 21:55 AM

      Gold should have decent support at $1930. It really has no business breaking below that level in the next few weeks.

    Apr 21, 2022 21:59 AM

    GLD:SLV is building a huge pennant consolidation. This is typically a continuation pattern, which is not good if you are a PM bull. Maybe it will break down instead of up, but right now it looks textbook.

    Not only that but there is arguably a large inverse H&S that has been built out on the weekly chart. If the GSR breaks above 83ish, it’s not good.

    Interestingly, the setup in gld:slv is arguably very similar to 2010, which resolved to the downside (silver exploded higher), so there is still hope.

      Apr 21, 2022 21:11 AM

      Green, gold won’t crash unless there’s peace declared by Putin or eliminated. Both remote possibilities. Gold is also not likely to go into the stratosphere as gold bugs preach unless Putin goes nuclear or at a minimum NATO wedges its way into Ukraine for humanitarian reasons.
      Best to wait for the pop ups in producers as gold stays rangebound at this higher level and not overstay the visit.

    Apr 21, 2022 21:19 AM

    80% of portfolio negative today. Same as first 3 days of week ….
    Edit: The good news is that General Markets up because inflation, the debt and War gone away. Correction: Central Bankers not in jail.

    Apr 21, 2022 21:37 PM

    The candy store is now open and I am starting to slowly accumulate—all kinds of bargains.