rocwell wrote:
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Not buying it.
We are certainly in for a rocky few months in the stock markets but there will be a great buying opportunity on the horizon.
The thing to remember is the next crisis is in government.
Everyone thinks when times get rough, head to bonds. That works until it doesn't - and it is about to not.
Countries have been financing an ever expanding debt by rolling it over. Mathematically that has to end at some point.
Once people start to realize the incompetence exhibited by governments, especially western governments, around the world, the game is going to be up and confidence is going to be lost. We are already seeing a push to eliminate physical cash all in the name of terrorism of course. We are also seeing western governments starting to share financial information to get their hands on every penny possible. Legislation such as FACTA is contributing to a total slow down in all commerce because the administration alone is cost prohibitive. Then you also have negative interest rates on the horizon that will cause people to take their money out of banks and get it off the grid in to assets (whether art or exotic cars for the wealthy or metals or stocks/shares). It is only the lunacy of government that thinks people are going to keep money in a bank losing money (which is why they want to eliminate physical cash....which is why people who see this are buying things).
At that point you're going to see capital flow in to private assets - i.e. the stock markets.
The talking heads are going to be spinning and unable to understand what is happening.
You're going to see the USD soar as it has been (in spite of all the debt the US has because there is so much external US debt denominated in US dollars) and capital flow to the US. I put all my investments in US Dollars 2-3 years ago and have made nearly 40% on the exchange alone.
So yes - short term - equities are in trouble - but longer term stay away from bonds and all things government.
Sovereign debt is the next crisis.
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