SAYONARA DOLLAR: Gold King of 2022!

Silver, Gold, Stocks, Bonds and Biden

Why is the FED adamant about raising interest rates in 2022? Because it is obvious that financial conditions are the easiest they’ve ever been and could lead to formation of habits that only exist in times like these and will later come back to haunt us, as we fight inflation!

Here’s a snapshot of the last 37 years of financial conditions in America; literally, if one can’t figure out a way to get included in today’s economy, when workers are in such high demand, conditions are so relaxed for lending and default rates are so low, it’s a crying shame.

Times are too good and that has led to inflation:

Courtesy: Zerohedge.com 

Because the FED’s policies have been deemed so aggressive, investors have sold stocks hard, but bond investors sold bonds at the same time – which is weird – and indicates that someone is wrong, leading the strategy of bonds/stocks to 13 losing days out of the last 15!

We’re at a breaking point; either equities are worth more and have sold off by too much, or interest rates shouldn’t be this high…

10yr Treasuries are actually having their worst start to a year in at least 30 years:

Courtesy: Zerohedge.com, Bloomberg 

And, if there’s a time that gold’s minimal correlation with stocks and bonds is a really big advantage, it is now!

Stocks are having their worst start to a year since 2016 (and 3rd worst in at least 30 years):

93% Of Investors Generate Annual Returns, Which Barely Beat Inflation.

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    Courtesy: Zerohedge.com 

    2016 was an amazing year for gold and mining stocks, and if we can even see HALF of the beauty of the rallies that gold stocks saw in 2016, you’ll be smiling cheek to cheek.

    If yesterday was the beginning of the relief rally, then gold could reach $1,850/oz pretty shortly!

    Like I said, pricing in four rate hikes and a 50bps hike in March is nonsense!

    Courtesy: Zerohedge.com, Bloomberg 

    Portfolio Wealth Global simply does not see a real catalyst for stocks to be climbing back up quickly, with all of this uncertainty surrounding interest rates!

    What happened every time the FED raised rates in the past?

    The dollar cratered!

    As I write this, the DXY index, which measures the dollar’s strength against a basket of leading fiat currencies, sits at 95.56, but that’s not enough to justify a real USD bear market.

    If the DXY starts to come down towards 90.00, then the odds of a real bear market become a reality.

    For now, gold hitting $1,900/oz would be indicative that the trajectory is gold-positive.

    Best Regards,
    PortfolioWealthGlobal.com

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    Governments Have Amassed ungodly Debt Piles and Have Promised Retirees Unreasonable Amounts of Entitlements, Not In Line with Income Tax Collections. The House of Cards Is Set To Be Worse than 2008! Rising Interest Rates Can Topple The Fiat Monetary Structure, Leaving Investors with Less Than Half of Their Equity Intact!

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