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    Market Update: A Titanic Disaster Ahead?

    Tech stocks now in a classic blow-off top
    by Adam Taggart

    Friday, July 10, 2020, 10:55 AM

At this point, as go the leading Tech stocks, so go the markets.

So much capital has crammed into the tech sector this year that it boggles the mind. Tech stocks now make up 40% of the market cap of the S&P 500.

And despite their huge size, they continue to race higher. Nearly. Every. Single. Day.

Here’s a chart of six of the biggest tech companies. Over just the past 7 trading days, they have increased a combined total of half a trillion dollars in market cap. That’s $500 billion, folks — in just a week!

Big tech stocks gain $500 billion in past 7 trading days

(Source)

Looking at Amazon’s (AMZN) stock price, up nearly 20%(!) since the start of July, we see a trajectory that we’re familiar with — a near-vertical blow-off top:

AMZN stock chart

(Source)

This is the classic manic ending to an asset price bubble — as seen when Bitcoin hit $19,000 in late 2017 and when silver hit $49/oz in 2011. For further affirmation, watch this short video chapter from Crash Course on Bubbles.

In a way, this is comforting to see because it gives us confidence this insane, mindless, unjustified market euphoria will end soon. We just need to be prepared for the predictable violent aftermath when it does.

As we do each week, we’ve once again asked the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, to share their latest insights on the end of Great Tech Bubble and what comes next.

We spend a fair amount of time in this week’s video asking New Harbor for actionable options to protect recent gains from a potential pull-back, as well as how to position for a larger market melt-down if indeed Tech soon reverses and we experience a crash greater in magnitude than what we suffered in February:

Anyone interested in scheduling a free consultation and portfolio review with Mike and John can do so by clicking here.

And if you’re one of the many readers brand new to Peak Prosperity over the past few months, we strongly urge you get your financial situation in order in parallel with your ongoing physical coronavirus preparations.

We recommend you do so in partnership with a professional financial advisor who understands the macro risks to the market that we discuss on this website. If you’ve already got one, great.

But if not, consider talking to the team at New Harbor. We’ve set up this ‘free consultation’ relationship with them to help folks exactly like you.

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31 Comments

  • Fri, Jul 10, 2020 - 12:51pm

    #1

    Adam Taggart

    Status: Platinum Member

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    TSLA: another blow-off top

    TSAL stock chart

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  • Fri, Jul 10, 2020 - 6:39pm

    #2
    dryam2000

    dryam2000

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    USD devaluation?

    I’m curious on people’s thoughts about a potential purposeful USD devaluation.  The reason I bring this up is because it seems the Fed may need to change course from their current actions which have been going on for 20 years.  If the current influx of money into the “markets” were to ever stop there would be unbelievable deflation.

    Random thoughts presented more as questions than statements as I’m very much a financial amateur........

    During the height of the Great Depression in 1934, with the U.S being on the gold standard at the time, the USD was devalued to stem deflation and stabilize the money supply.  This was done by devaluing gold.  Today, there is no gold standard.  The USD is on the USD standard.

    Oil is (mostly) priced in USD.  A huge problem for the U.S. is the oil industry (and by extension the banking industry).  Oil prices appear to be sub-$40 for quite some time into the future given the lack of demand around the globe.  Supply can only be cut so much.  Devaluing the USD would increase the price of oil.  Furthermore, the agriculture industry would also get a needed boost.

    USD devaluation would prop up stocks and thus innumerable underfunded pensions.

    Devaluing the USD would help decrease household, corporate, and public debt burdens.  When debt can’t be paid back banks blowup.  Thus, decreasing debt burdens would help the banks.

    USD devaluation would help improve the trade deficit.  Those deficits have been going on for 45 years, and have been rising at a sharp rate since CV-19 had its initial impact in February of this year.  How much longer can these trade deficits go on?  All of the supply chain disruptions have revealed a tremendous amount of vulnerabilities with the lack of manufacturing in the U.S.  A devalued dollar would be an extra manufacturing incentive.

    The more inflation, the more wealth is equalized for a vast majority of Americans and wealth inequality is a major problem as discussed on this site.  Inflation is the most insidious tax, and society would move that much closer to socialism in the least direct fashion.  A more direct move towards socialism would cause a sharper degree of public outcry.  Elizabeth Warren has been rumored to be the front-runner for Treasury Secretary under Biden, and she’s previously advocated for dollar devaluation.

    The government could raise taxes on the higher income earners, and on capital gains.  Thus, many asset holders may initially benefit but most won’t be able to escape scot-free because of taxes on the backend.

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  • Sat, Jul 11, 2020 - 8:04am

    David Turin

    David Turin

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    Is USD devaluation picking winners and losers?

    Devaluing the USD would help decrease household, corporate, and public debt burdens.

    Seems to me a devalued dollar helps some on the backs of others, no different from any other monetary theory that interferes in what is obviously not a free market.

    For households in credit card debt and upside down on their mortgages, perhaps this is good for them?  For people who own their homes or land, they lose?

    Jobs might grow, especially in export industries with a cheap dollar.  Meanwhile imports will cost more.  Folks on fixed incomes would just be tossed off another cliff with a good luck?

    I wonder, would a devalued dollar bring manufacturing jobs back to the US, like N95 mask making, for example?

     

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  • Sat, Jul 11, 2020 - 10:27am

    #4
    Hladini

    Hladini

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    Outer Limits?

    Hey there Adam,  you got a chuckle out of me recalling movie titles that describe our distorted and perverted markets.  You can add 'Outer Limits' and 'Twilight Zone'.... or how about 'Honey I  Shrunk the Economy?'

    Hahahahahahaaa.

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  • Sat, Jul 11, 2020 - 10:29am

    #5
    asgordon123

    asgordon123

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    been ground hogs day for almost 12 years now...:(

    uhg

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  • Sat, Jul 11, 2020 - 10:30am

    #6

    Mark_BC

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    Mark_BC said:

    But if you look at AAPL over the last 3 months since the CoronaCrash™ it's been just a steady straight ascending line, no blow-off evident. This seems to be a managed increase. Will it continue? Why not?

    Is this really a bubble when the Fed continues to print and inject? Where else is the money going to go? All fundamentals have long since been thrown out the window. Last year when everyone was amazed that TSLA was at $700 I pointed out that if the company has never turned a profit, then what's the difference between $700 and $1000? Well now we're at $1500. Why not $2000?

    Seems to me the parabolic increase in its stock price fairly mirrors the parabolic increase in the Fed's money printing. The best performing stock market over the last 10 years was Venezuela's, and if you could use options to lever that market you may have stayed ahead of the hyperinflation.

    I can certainly see TSLA tanking soon back down below $1000 as it's always too volatile which is why I don't trade it (unless it tanks again then that may be a good entry point). But it's an outlier while others like AAPL are more bread-and-butter money makers.

    I do agree that the powers that be will have a deflationary crash at some point to clear out the markets so they can continue buying it all up with freshly printed money. The question is, when? I don't think you can use fundamentals to time it.

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  • Sat, Jul 11, 2020 - 1:05pm

    #7

    Adam Taggart

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    Big Tech eating the world

    FANGMAN stocks chart

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  • Sat, Jul 11, 2020 - 1:35pm

    #8
    Mysterymet

    Mysterymet

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    Company quarterly earnings reports coming

    I wonder what is going to happen when various big companies report earnings down the toilet bowl? Maybe some bubbles will be popping?

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  • Sat, Jul 11, 2020 - 1:37pm

    MKI

    MKI

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    7tn in tech

    Another way to look at this? Since 7 non-dividend, overvalued stocks match the GDP of 3 nations...the remaining meat-and-potatoes dividend-paying stocks are probably undervalued.

    And we are probably looking at real inflation ahead when all that money has to go somewhere.

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  • Sat, Jul 11, 2020 - 2:07pm

    #10
    dryam2000

    dryam2000

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    Velocity of money is low

    The velocity of money is low with the economy in free fall.  I’m not sure if money in stocks/bonds necessarily has to go anywhere.  The “markets” have become bastardized into being a golden savings vehicle where people can park their money and see it grow over time like magic.  It’s the best of both worlds; saving & investing at the same time.

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  • Sat, Jul 11, 2020 - 3:28pm

    climber99

    climber99

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    How can you devalue the USD?

    You can only devalue the USD relative to anonther curency.  Since all the major economies are engaging in QE they stay stable relative to one another.  One could argue that all curencies are being devalued equally relative to real assets, the real assets being stocks and bonds at the moment but will also include wages, goods and services some time in the future (called inflation).  Not good for savers.

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  • Sun, Jul 12, 2020 - 9:36am

    #12
    dryam2000

    dryam2000

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    The tax man is coming

    I just listened to Peter Schiff’s latest podcast.  He talks a lot about Biden’s latest taxation agenda.  The agenda includes raising corporate taxes and capital gains which is a double tax as dividends come from after-tax profits.  Additionally, he wants social security taxes to be taken out of capital gains.  All of which would be stock market negative.  He also wants to establish new real estate taxes which by itself would greatly impair the (already impaired) residential real estate market.

    Schiff starts talking more about taxes around the 36 minute mark.   However, at the beginning of the podcast he talks about the U.S.-China trade mechanism of China giving the U.S. real goods with the U.S. giving China USDs in return (which props up the value of the USD).  By all appearances it looks like the uncoupling of this dynamic is in full gear.  The current Phase 1 trade deal was a farce and China isn’t coming close to complying with what was stated.  Given the Hong Kong situation, all the spying allegations, etc., along with the multitude of other news stories it clearly looks like any type of friendly alliance between the U.S. and China is going by the wayside.

    So, whether it is an external event or internal event it seems there is a fair likelihood of USD devaluation.  All the proposed taxes are very market (and economy) negatives, but a much lower (~30%) USD would would be positive for “market” prices (however would probably be negative in real terms as it chases out foreign investment).  As stated above the lower USD would (artificially) inflate asset prices offsetting many of the tax increases.

    So, all of this makes me think the there is a fair chance the financial future consists of marked inflation combined with marked taxation.  History says extreme times oftentimes produces extreme measures.  Personally, I’m an extremely cautious person and investor.  I watch day to day prices way too often than I should.  My emotional tendencies have been to buy high and sell low.  Fortunately,  these tendencies have improved  quite a bit.  Bottom line, I feel very confident in hedging for this high inflation/taxation dynamic.  Our Roth IRAs (non-taxable) are the smaller portion of our retirement monies.  We have maxed out those Roths with inflation hedging gold/silver mining companies along with so-called physical holdings such as PHYS (but I like the suggestion in this podcast on direct physical holdings in a retirement account).  The monies in our other retirement accounts is in cash equivalents.  I plan on keeping my precious metals investments for quite a while even if there would be a sizable short term drop.

    Anyway, I think people should be very attuned to the political climate and probable tax increases that will be unprecedented in our lifetimes.

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  • Mon, Jul 13, 2020 - 7:08am

    #13
    towef

    towef

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    towef said:

    oh..

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  • Mon, Jul 13, 2020 - 7:36am

    #14

    Adam Taggart

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    TSLA: Wait for it......

    OK, this is a movie we've seen many times before folks. Tesla stock has gone exponential in classic bubble top blow-off fashion.

    The stock was $215 less than a year ago. This morning it nearly kissed $1,800:

    And that's with quarterly revenues AND shipments pretty much flat over the past year and a half:

    Statistic: Number of Tesla vehicles delivered worldwide from 4th quarter 2015 to 2nd quarter 2020 (in units) | Statista
    Find more statistics at Statista

    Oh, yeah, and there's the global recession going on now -- so that merits a 9x stock price increase, right?

    Quite honestly I'm encouraged to see this. This is an extremely strong indicator that the mania is reaching its maximum, and history is clear on what happens next. A swift retracement of most of the gains.

    TSLA has been the poster-child for the unrelenting and undeserved Big Tech rally that has pulled the rest of the market along with it. Those of us who have watched this unfair wealth transfer in frustration now likely have very little time left to wait until this rally gets it just desserts.

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  • Mon, Jul 13, 2020 - 7:57am

    #15

    Mark_BC

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    Mark_BC said:

    Just made 50% in one day on AAPL...

    Sure, let it crash. Since only a smallish portion of my assets are allocated at a given time, if I increase my portfolio by 20x before the crash, who cares if I lose 30% in a crash? And we'll likely have inside information leaks before the crash anyways, so I'd likely get out unscathed. For the CoronaCrash, I ignored those inside info leaks.

    Sure, the bubble has nothing real behind it. That doesn't change the fact that you can play it and accumulate currency units which you can buy real things with, or pay off debt. The good thing about inflation is debt stays the same, whereas the currency units grow. As has always been the case, inflation punishes the savers and rewards the debtors.

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  • Mon, Jul 13, 2020 - 8:22am

    thc0655

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    How to devalue the USD

    Climber said,

    How can you devalue the USD?

    You can only devalue the USD relative to anonther curency.

    Not really. Jim Rickards has often said the Fed could devalue the dollar in 5 minutes by making an announcement like this:

    1. The Fed hereby declares that the USD will be backed by gold holdings equal to 40% of dollars in circulation.

    2. The Fed hereby declares that the price of gold is now $10,000/oz.  If the price falls below $9,900/oz the Fed will enter the market and buy gold until the price reaches $10,000/oz. if the price rises above $10,100/oz the Fed will sell gold until the price drops back to $10,000/oz.

    This would be a radical action and Rickards says they would only do it in the worst crisis because they were forced to to prevent a total collapse of the USD and the world financial system. We would then have “sound money” backed by gold and the whole bogus system requiring steady inflation forever would be demolished.

    We can always hope. 🤷‍♂️

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  • Mon, Jul 13, 2020 - 3:31pm

    #17

    Adam Taggart

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    Major reversal!

    Wow! Today was a BIG day.

    Tesla stock (TSLA), as the Big Tech bubble poster child, rocketed up 16% to $1,794 this morning and then reversed to close down 3% to $1,497:

    I predicted this morning that such a reversal was imminent -- because we've seen the exponential curve that TSLA is following before. It's a classic late stage blow-off top. Such meteoric vertical trajectories simply can't be sustained.

    And we know how they end. With sharp reversals that are extremely painful for all of the (often novice) investors who jumped in at the end of the mania.

    This is EXACTLY the action we've been expecting/hoping to see to mark the end of the unjustified massive run-up in Big Tech.

    All of the other FAANMG stocks experienced similar reversals today -- though not as extreme as TSLA's.

    Today could very well have marked the top.

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  • Mon, Jul 13, 2020 - 6:27pm

    #18

    davefairtex

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    the millenial 10

    A very experienced trader friend of mine calls these stocks "the Millenial 10"; he got that from the following article:

    https://markets.businessinsider.com/news/stocks/apple-tesla-berkshire-hathaway-rank-millennials-favorite-stocks-2020-1-1028851820?op=1#honorable-mentions11

    AAPL AMZN TSLA FB MSFT BRKB DIS NFLX AMD BABA

    "not once has a Financial Entertainment TV talking head told us that!"

    Just FYI - only a mild bearish reversal on TSLA today (long black, 33% bearish reversal).  I was a bit surprised, but maybe it will be a process rather than a one-day affair.

    Another trader friend noted that there were a huge number of TSLA "weekly" (i.e. expires Friday) calls traded today.  Presumption is, dumb money was loading up on them, right at the top.  Max Pain option theory suggests this is the time for wall street to smash price lower, in order to collect on all that call option money.

    Perhaps TSLA had a little bit of help both in the rally, and today's possible reversal.

    Of course if TSLA closes tomorrow below today's low, that's a swing high, and probably a very strong one at that.

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  • Mon, Jul 13, 2020 - 6:30pm

    #19
    DennisC

    DennisC

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    Yippee ki-yay

    Long way to go.  Three percent here, three percent there... I'm sure they can make it up on volume.  With debt about 142 times equity and book value about 50, what could go wrong.  Cue the next vaccine ""success" story for the A.M.

    P.S. Had to add this for laughs.

    Let's light this candle (pun intended).

     

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  • Mon, Jul 13, 2020 - 7:20pm

    #20

    Mark_BC

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    Mark_BC said:

    One thing that doesn't seem to add up to me is how the hordes of novice small investors can possibly push up stock prices so high. Do little guys like me actually have $trillions to throw into the market? I thought everyone was poor now from Covid? Can all those $1000 Covid checks add up to trillions? A $trillion in market cap divided by $1000 is 1 billion people throwing their Covid check into the stock market. Did that actually happen?

    It's institutional money pushing it up, which is hardly novice. I have another theory for TSLA. Maybe the real reason TSLA is so volatile and expensive is because it makes no money and it needs the funds injected from the stock market to sustain itself. Since the powers that be cannot let TSLA fail (at least not yet), they send the money in one way or another. This is why TSLA defies all logic yet all the other darling tech stocks are just trudging up higher and higher week by week, no blow-off top evident at all. It's the most predictable, steady rise you can imagine. Until it isn't. And I don't think we're there yet.

    But I do expect a correction in TSLA like it's had a few times over the last year, if you look back at its chart. None of these corrections affected the upward trajectory of the other darling stocks (except of course the CoronaCrash).

    Gregory Mannarino points out that the reason the market turned today was because mid-day OPEC came out and said that they would not be curtailing production as much so oil price would not rise. Otherwise stocks would have been higher, which they were, until mid-day.

    The money's gotta go somewhere and it ain't the shoe shine boy bidding up TSLA higher. That's why this time it IS different. Never before in the history of the dollar has the bubble in stocks been funded by overt money printing. It is NOT a credit bubble (at least primarily)

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  • Mon, Jul 13, 2020 - 7:31pm

    #21

    Adam Taggart

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    10,000 Day Traders An Hour Buying TSLA

    Mark BC wrote:

    One thing that doesn't seem to add up to me is how the hordes of novice small investors can possibly push up stock prices so high. Do little guys like me actually have $trillions to throw into the market?

    Well, at least 457,000 Robin Hood investors are buying TSLA:

    Ten Thousand Day Traders an Hour Are Buying Tesla Shares
    By Sarah Ponczek
    July 13, 2020, 12:20 PM PDT Updated on July 13, 2020, 1:34 PM PDT

    Almost 40,000 Robinhood accounts added shares of the automaker during a single four-hour span on Monday, according to website Robintrack.net, which compiles data on the investing platform that’s much beloved by day trading millennials.

    The frenzy in interest means that as of the end of Monday’s trading session, there are now roughly 457,000 users on the Robinhood app that hold shares of the company in some form. That makes it the 10th-most popular stock on the platform, ahead of even Amazon.com Inc., which is held by 358,000 users.

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  • Mon, Jul 13, 2020 - 8:47pm

    davefairtex

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    how do hordes of novices affect prices?

    One word: Margin.

    Wall Street is a harvesting operation.  Robinhood platform pays for its "free trading" by selling order flow - intel on what their customers are trading - to the Wall Street harvesting operation, who then proceed to separate these people from their money.

    https://www.forbes.com/sites/sergeiklebnikov/2020/06/17/20-year-old-robinhood-customer-dies-by-suicide-after-seeing-a-730000-negative-balance/#1898d1416384

    The note found on his computer by his parents on June 12, 2020, asked a simple question. “How was a 20 year old with no income able to get assigned almost a million dollars worth of leverage?” The tragic message was written by Alexander E. Kearns, a 20-year-old student at the University of Nebraska, home from college and living with his parents in Naperville, Illinois. Earlier that day, Kearns took his own life.

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  • Mon, Jul 13, 2020 - 9:06pm

    #23

    Mark_BC

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    Mark_BC said:

    Good point about margin.

    I will concede that TSLA is in a bubble and as I said before, I expect a correction.

    But where is the blow-off top in AAPL? It's so straight, it'as almost as if it was being managed...

     

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  • Tue, Jul 14, 2020 - 8:52am

    #24
    JWhite

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    Question re: levels of precious metals holdings

    This was a great talk and I always enjoy what the three of you have to say, as well as the candor of John and Mike.  Adam you are a gifted interviewer, and moderator when there is a larger group.

    For some time I've been wondering why investment advisors suggest to hold only a small portion of one's portfolio in precious metals (the recommendations are usually between 5 and 20% depending on the analyst) during these times?  If the demand for gold and silver, as well as turbulence in the markets and in society, are expected to continue to grow, why wouldn't the recommendation be to hold higher levels of precious metals, for example 75%, during these times?

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  • Tue, Jul 14, 2020 - 3:21pm

    #25

    thc0655

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    My New Harbor experience

    I’ve been with New Harbor for about 11 months and I’ve seen a gain of ~12%. That’s fantastic in my mind because all I really wanted them to do is to keep me from losing money! That’s also good because they have me positioned to take advantage of a crash in the stock market and a corresponding gain in Precious Metals and mining stocks. With New Harbor I welcome every correction and crash.

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  • Tue, Jul 14, 2020 - 9:09pm

    Adam Taggart

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    Precious metals are volatile (and manipulated)

    JWhite said:

    Adam you are a gifted interviewer, and moderator when there is a larger group(...)

    (...)why wouldn't the recommendation be to hold higher levels of precious metals, for example 75%, during these times?

    Thank you for the kind praise, JWhite. I'm glad to hear your enjoy these interviews and will keep trying hard to earn your appreciation.

    As for whether financial advisors should be recommending a substantially higher % of one's portfolio be held in PMs given current conditions, the answer is complicated.

    I suppose the short answer is that it's rare that an advisor will recommend you be that concentrated (75%) in ANY one asset class, except perhaps cash. Most will want you to have diversification.

    Also, gold and silver are very volatile (especially silver), and it's important investors realize that before buying them. You have to be prepared and willing to endure prices swings of 20%+ on a monthly basis. Many folks just can't handle that.

    Moreover, most PM holders come to believe that The Powers That Be conspire to keep gold and silver from appreciating to their true potential; often "monkeyhammering" the price down in orchestrated raids. For most people, it's not appropriate to suggest they hold the majority of their capital in an asset class vulnerable to such manipulation.

    That said, Chris and I hold a substantially higher percentage of our financial wealth in PMs than the 5-20% percent you mention. But that's because we're well-experienced with their dynamics and very intellectually bought-in to their role as a preserver of purchasing power. Mike Maloney of GoldSilver.com famously holds pretty much 100% of his financial wealth in PMs.

    So our general advice is: hold as much in PMs as makes sense to you AND let's you still sleep at night without worrying too much about what the price may do tomorrow.

     

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  • Wed, Jul 15, 2020 - 12:31am

    Eannao

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    PM allocation

    Great question JWhite... one I've been asking myself for a long time too. And great answer Adam. You nailed it.

    For me, 5-10% always seemed way too low, and I now sleep happily with around 25-30% of my investibile capital in PMs. Now that the bull market in gold seems to have good momentum, I'd like to increase the %, but must remember this will happen naturally as the price increases.

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  • Wed, Jul 15, 2020 - 9:20am

    JWhite

    JWhite

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    Replying to Precious metals

    Thank you Adam for taking time to consider my question - your points make sense.  The 75% was simply a number I threw out to contrast with the typical recommendations – the idea being ‘some number much higher than 10%’.

    In looking at the price history of gold over the last 20 years, even with manipulation it has gone up over time.  But I’m specifically looking at 2007 - 2012, and expecting that a similar situation is taking place now, so I’ve been wondering why the recommendations for holdings of gold are still on the low side at the moment.  If we are expecting inflation, or hyper-inflation, then I’m not sure if cash is safer than gold at present.  Also if a significant amount of cash is in a bank, then there is the possibility of bail-ins.

    It makes sense that if an investor is worried about what will happen to the price tomorrow, then significant PM holdings may be too stressful. I suppose it depends on what one believes will happen, with all the sectors.

    Another member also made a point that there is the possibility that governments could dictate that it is illegal to hold gold, at some point in the future.

    In any case, while we also have a ‘higher than 5-20%’ investment in PMs, I don’t have a strong opinion about this, I was just curious about the current recommendations and thoughts on this.  Thanks for clarifying….

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  • Wed, Jul 15, 2020 - 1:19pm

    #29

    Adam Taggart

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    Indecent Profiteering

    Goldman Sachs shares rise as earnings blow past the Street on the best trading results in years

    “Goldman’s earnings this quarter were too good — almost indecent, in fact,” said Octavio Marenzi, CEO of capital markets consultancy Opimas. “The Fed has been able to engineer a huge bounce-back in the markets by injecting trillions of dollars, benefiting investment banks primarily.”

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  • Wed, Jul 15, 2020 - 3:57pm

    Mohammed Mast

    Mohammed Mast

    Status: Silver Member

    Joined: May 17 2017

    Posts: 628

    Shocked

    I am shocked I tell ya. It is Indecent and it's exposed. Can they get arrested for indecent exposure?

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  • Wed, Jul 15, 2020 - 4:34pm

    #31

    thc0655

    Status: Platinum Member

    Joined: Apr 27 2010

    Posts: 2024

    5+

    Diversification

    I once heard it said that diversification is the investment strategy you use if you don’t know what’s going to happen. 😂

    But I “know” what’s going to happen: we’re going to start down a devastating deflation vortex that would destroy the big banks and other big holders of debt (bonds). That’s what is mathematically required. BUT those who would be devastated by deflation have the power to prevent it (by printing “currency” in huge amounts at frightening speed). That’s what “they’ve” always done and is what is in their best interest. So we’ll get a huge inflation, probably hyperinflation unless a monetary reset can be agreed upon. I just don’t know when and the crucial particulars.

    So I’m ready for the deflationary nightmare to get started, and it has already. I can cope with it and might even benefit in some ways. I’m also ready for the massive currency creation and think I’ll survive it and perhaps even thrive/profit. The timing is a complete opacity. The details of my life during all this are also unknown and will probably even threaten my life. No one wants to live in a world in which gold is $10,000/oz or more and silver is $500/oz, and I certainly don’t. But if something like that happens, I have strong reasons to think I have a shot at survival.

    “Happy Hunger Games. And may the odds be ever in your favor.”

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