Oct 30, 2020

This Time Stocks And Bonds May Crash Together

When the stock market crashed in Oct. of 1987, a sharp rise in bond prices not only cushioned the blow for diversified portfolios, but lower interest rates supported higher stock market valuations. This time stocks and bonds may crash together, leaving investors with no relief.

Oct 29, 2020

Bitcoin, Election & Stimulus

Bitcoin: The Biggest Bubble

If you measure the size of asset bubbles based on the level of conviction buyers have in their trade, the Bitcoin bubble is the biggest I've seen. Bitcoin hodlers are more confident they're right and sure they can't lose than were dotcom or house buyers during those bubbles.

Is a contested election good for the stock market?

On CNBC Fundstrat said a contested election is good news for the stock market because it will cause the Federal Reserve to backstop losses with more QE. Maybe if COVID starts turning people into Zombies we can all stay home and get rich, as the Federal Reserve money printing sends stock prices soaring.

The Economic Dependence On Stimulus

It's crazy to blame the problems in the economy or the stock market on a lack of stimulus. The Federal Reserve is already suppling constant monetary stimulus and the Federal government is providing huge fiscal stimulus. The problem is that the stimulus addicts now need an even larger dose.

Oct 27, 2020

Stock Market: All Bubbles Eventually Find A Pin

The Peter Schiff Show, Episode 622: All Bubbles Eventually Find a Pin

Watch and listen on Youtube: https://www.youtube.com/watch?v=9JFDrWGA4Nc

Highlights from this podcast episode:

  • Stock markets tumble on renewed fears.Blue wave may not crest as once was expected.
  • More stimulus comes with bigger government.
  • Trump is the Republican Jimmy Carter.
  • Trump’s legacy will be his successful Supreme Court nominees.
  • The most important thing this election is to prevent Democrats from taking control of the Senate.

Oct 26, 2020

Elections: Biden Will Create A Weaker Economy

Bad news on the presidential election is perceived as good news for the stock market. Despite knowing a
Joe Biden win means lower corporate earnings and higher taxes, investors think the weaker economy Biden will create means even larger doses of fiscal and monetary stimulus.

Oct 12, 2020

Goldman Sachs Bets Against The U.S. Dollar

On CNBC: Goldman Sachs bets against the dollar on ‘blue wave’ prospects and vaccine outlook

Goldman is still too positive on the dollar, and doesn't understand that a delay in a covid vaccine is also bearish for the dollar. Such a delay will lead to an even weaker U.S. economy, larger budget and trade deficits, and even more money printing.

More Stimulus Only Weakens The Economy Further

The misguided goal of the "stimulus" is to get consumers to spend more. But excess past consumption is why the economy is so weak now. We must reduce consumption to free up resources to increase capital investment and production. More spending only weakens the economy further.

Very appropriate that Larry Kudlow was wearing a mask when he claimed the V-shaped recover was going strong, but that the economy needed an additional $1.8 trillion in government "stimulus." The economy can't be simultaneously strong and also in need of massive government support.
Much darker days for the U.S. dollar lie ahead. It's going way down and taking the entire American economy down with it.

Oct 8, 2020

Powell Doesn't Understand Economics

Powell doesn't understand economics. Low interest rates are only good for the economy if they naturally result from high savings and low debt. If they result from Federal Reserve manipulation, they are extremely harmful. Like any government price control, it results in adverse imbalances.

The Fed's misguided monetary policy will create the condition where any cure for an inflation rate that greatly exceeds its 2% target will be fatal to the economy. If the inflation disease doesn't kill the economy, the cure will. The question is, which poison will the Fed pick?

Oct 5, 2020

The Wrong Road To Economic Recovery

The economy doesn't need more consumption, it needs more production. Productive employment will stimulate the economy. Printing money and distributing it to non-productive people will not. It will only result in larger trade deficits, a weaker dollar, and higher consumer prices.

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