by Michael Krieger | May 14, 2019
Today's the first day in a long time financial markets appear willing to at least consider the reality of the geopolitical situation on the ground for what it is, as opposed to what most people would like it to be. As I've noted for months, the "trade war" is just one battle in a much larger, increasingly unstable struggle between the U.S. and China for global power and leverage to shape the next paradigm of world history.
The Fall is never pretty...
A failure to appreciate how big this really is explains why investors have been so willing to swallow unrealistic happy talk from both sides. The risk that needs to be discounted in the market isn't a risk of higher tariffs, but the risk of WW3. The U.S. and China were never going to sign a trade deal and blissfully return to the ways things were. That world is over. We now find ourselves in the very early days of a historic struggle to influence the future.
Gold
Back in January, I wrote a twitter thread centered around gold which ended up becoming very popular. It's been around five months since then, so I want to provide a quick update.
I had outlined four reasons why I had become increasingly bullish.
9/ U.S. equities have been in a historic bull market since then, and gold has done nothing but go down. I don't think the next bull market in gold can really get going until this central bank manufactured 10 year asset bubble begins to burst, and I think this is now happening.— Michael Krieger (@LibertyBlitz) January 4, 2019
The first three factors remain in play as far as I'm concerned, but the trading action has been pitiful in 2019 to-date as equities have soared. Nevertheless, I find it quite interesting that despite the S&P500 hitting a new record high a couple of weeks ago, the market in gold terms never really came that close.
Please go to Russia Insider to read the entire article.
________
Related:
The US-China Trade Scuffle Will Kick Off the Great Meltdown
Trump Seeks New $15 Billion Subsidy to Protect Farmers from His Own Trade War
Has Trump Ever Heard of the Opium Wars? Apparently Not
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.