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SNLS | June 30, 2019

We Bring You This Critical Alert, Contributed By WealthResearchGroup.com and Their Founder, Lior Gantz, Who Our Staff Looks At For Accurate Economic Forecasting.

Trump Gives Green Light To Currency Devaluation

First of all, the first half of 2019 reminded me of Charlie Munger’s quote from a couple of years ago, saying that while he does not have any say as to what central banks are doing, the benefits of their policies on the world’s stock markets has been very clear. Replying to a question from an audience member at the annual shareholder meeting, he countered that we’re all undeserving rich people, implying that while printing currency is like rigging the markets, in many people’s eyes, it does assist to make investors wealthier, for the time being.

Munger is super-witty and doesn’t filter his language at all at his age. By saying the above, he means that central banks have largely caused the price elevations for many asset classes, especially stocks, real estate, and bonds, via their stimulus programs, but that it’s unfair and at some point, the ramifications of it will become evident, as I believe they are, when seeing the rise in socialistic political agenda.

This year has been the polar opposite of 2018: last year, the U.S. dollar was the best-performing asset on the planet, a phenomenon that last occurred in 1969, while 93% of asset classes ended the year being DOWN for the year, closing the calendar year in the red. In 2019, on the contrary, we’re making a fortune from all angles:

  1. Cash-Flowing Index Stock Market: At any given time, there are between 50-100 professionals (globally) who are consistently beating the index; that’s it. It’s the minority of the minority.

Therefore, I keep it simple with my own portfolio and invest nearly half of my net worth in the S&P 500 and its closest neighbors. I load-up when the market is correcting down, which helps me to beat a simple buy-and-hold strategy. This has been the bread and butter of my portfolio since the age of 16.

The S&P 500 had its best first half of the year since 1997 just now. Global stocks (MSCI World) just had their greatest month of June performance in history. The Dow just had its best June since 1938.

Courtesy: Zerohedge.com

There’s a price to be paid for economic engineering and monetary stimulus, and we will all pay it collectively. But just like the reward of this financial experiment has benefited the wealthy much more than it has the middle class and the lower-income demographics, so will the unwinding of it be spread unevenly among folks.

We may never see the day that millions of Americans march on Washington again, demanding that the Constitution be upheld, that the central bank be abolished, and that the Deep State cabal be arrested one by one.

Therefore, we must plan our lives as individuals, who reach conclusions based on what IS and not what OUGHT to be.

My point is that we can’t expect a sudden enlightenment of the masses and, therefore, governments will probably inflate debts by devaluing currencies, not by inflicting austerity measures or by confronting the population and revealing the hard truths to them in order to reach a democratic solution.

The global debt mountain is screaming at us to diversify our net worth.

For most people, diversifying their net worth consists of owning 30-40 stocks, but true diversification means much more than that. While stocks have been rallying for years, we’ve been making even bigger gains with cryptocurrencies, which 90% of investors have not dared venture into, but we have.

  1. Gold and Gold Stocks: It’s imperative that you listen to THIS interview that Donald Trump just conducted with Maria Bartiromo of Fox News, especially when Maria asks Trump about the need to lower rates.

Like many, Maria was baffled by the need to lower rates if the U.S. economy is, for a fact, the hottest one in the world, with the lowest official unemployment rates in 51 years.

At time stamp 16:18, Maria confronts him on this matter. Trump lets it spill, big-time, that the real reason to lower rates is in order for the government to wipe out debt (by devaluation), but he immediately understands the ramifications of saying something like that on public television and flips it on the fact that since foreigners are doing it, America must devalue as well in order to stay competitive.

The reason to own gold has been the same since 1971; as a result, there has never been any period in history where the full faith of the people in the currency is the only thing it has going for it. What a FAKE illusion.

Courtesy: U.S. Global Investors

Gold faced two critical resistance levels before the FED announcement in June, and they were the double-top at $1365.40 and the July top of $1377.50 per ounce, the highest level for it since March 2014.

It blasted right through them and then broke above the $1,430, which was a big one. As I said, I’m currently in France, where gold is valued in Euros. One of the strategies I’ve used in the past decade is to convert funds I earned in dollars (which has been in a bull market) into gold, then offloading it in depreciated Euros, ultimately buying cheap apartments in major European capitals for cash flow. While gold has to rally about 38% to surpass its USD all-time high from 2011, it is only 11% away from its EURO record, and just 5% away from hitting a new high in Japanese YEN.

This is the real deal this time.

Trump and President Xi have announced that the U.S. and China will continue negotiating the trade deal where they left off, which many assume is BULLISH for the dollar, but they are dead wrong.

Once China inks a deal, there will be no need for them to hoard American currency anymore and they own $2.1T of America’s debt.

For the dollar, a deal with China equals a bear market.

Do not STOP until you have cash to sustain your family unit for a whole year without working.

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Written by SNLS


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