Market Update: Gold, IPO Market, Bitcoin

The main reason Gold is not getting a bigger boost from QE4 is that traders expect the markets to react the way they did to QE3. But when the Fed did QE3, markets believed it was the last QE, and that the Federal Reserve had an exit strategy. But QE4 is open-ended and exit is impossible! 

Related articles: Serbia Joins Central Bank Gold-Buying Spree

IPO Market and Stock Market Bubbles 

If you think popping bubbles are going to be contained to the IPO market or to the pot stocks, no. All of the bubbles are going to pop, including the total bubble in the US stock market overall.

Bitcoin and Pot Stocks

Lots of Bitcoin bugs criticized my tweet warning that the bursting of the pot stock bubble could be a harbinger of doom for Bitcoin as well. I am not comparing Bitcoin to pot. You can smoke pot and get high. You can’t do anything with Bitcoin. The similarities are the bubbles!

Creating Demand For Gold

The new head of the European Central Bank (ECB) Christine Lagarde believes she can create jobs by destroying savings. But jobs come from savings. Jobs need capital, and capital investment is funded by savings. When you destroy savings you also destroy jobs! All Lagarde will create is demand for Gold!

Market Update, Wealth Tax & Bitcoin

Market Update: US Dollar Index, US Stocks & Gold 

The U.S. Dollar Index closed a down week on the lows, while 30-year Treasury yields closed an up week near their highs. The dollar and bonds falling in tandem is a good sign that the bubble has popped! This is bearish for stocks and very bullish for gold.

Bitcoin: Bearish Chart 

The Bitcoin chart looks horrible. Not only does the flag that followed the recent breakdown project a move to $6K, but we are close to completing the right shoulder of a head and shoulders top, with a $14K head, and neck line just below $8K, that projects a collapse to below $2K!

Wealth Tax: Impact On Startup Capital 

If an unconstitutional wealth tax is passed, startup capital will be extremely hard to come by. What wealthy investor would want to put money into an illiquid private investment that is subject to annual appraisal and taxation, even if the investment itself never produces a gain? 

AOC Endorses Sanders 

AOC has endorsed Sanders for President. I guess Warren pretending to be a "capitalist to her bones" was too much for the unabashed socialist. If this propels Sanders to win the nomination, this is bad news for America, as he is left of Warren and even more likely to beat Trump!