- Controlled markets can't be controlled forever
- Confidence is beginning to fail, even at the top
- The leading indicators to monitor closely
- The reason to get excited about gold & silver again
As we recently covered in this week's special webinar, the geopolitical tensions across the world, alone, should have created some sort of ‘risk off’ response in the equity markets. With China, Russia and North Korea all increasingly at odds with the US for a wide variety of reasons, it’s very hard to make a case that Everything is Awesome!
Instead, it’s very easy to make the case that the world is on the brink of a period of destructive trade wars, if not actual 'hot' wars.
Again, that alone should be introducing some uncertainty, some ‘risk off’ behaviors by which we mean some sort of a selloff in equities. But that’s just not the case.
In fact, the current stock ramp-up is the second longest without even a 3% sell-off in all of US equity history.
It's my firm belief that these calm markets do not represent the collective wisdom of millions of independent traders and investors. They are instead the result of both direct and indirect support of said markets by monetary authorities and their proxies. That is, the central banks and the big banks they actually represent and look out for.
But this lack of volatility will have a very painful cost some day. No different than in a political crisis where an oppressed people finally rise up, the suppression of market volatility will spill over and…