Welcome to 2018 – a year that will be the culmination of at least 105 years of mismanagement of the Western financial system by governments, central bankers and the elite…
Stocks are now in a melt-up phase, and before the major bear markets start in virtually all countries around the world, we are likely to see the final exhaustion moves which could be substantial. The year will also be marked by inflation increasing a lot faster than expected. This will include higher interest rates, much higher commodity prices, such as food, oil and a falling dollar. And many base metals will strengthen. Precious metals have finished their 2-3 year correction are now resuming their move to new highs.
In this bull market there have been 374 trading days without a 5% or greater pullback, the second longest streak since 1928. This is pretty remarkable considering that 5% pullbacks have occurred, on average, 3x per year since 1928.
Sadly, most investors will remain convinced that current times will last forever as stocks and cryptos move to new highs. Few will realize that we are approaching the end of the biggest bubble in history.
No society that depends on money can work for long if nobody knows the true value of things, including the value of money itself. The price of attempting to live in a culture of pervasive dishonesty is that an asset price re-set is inevitable. When it happens, it will be hugely destabilizing.
Asset bubbles are financially destructive in the same manner as ocean waves. Their force is not linear, but exponential. A 4-foot wave has 16 times the force of a 1-foot wave; something any surfer knows from experience. We are now at the apex of the most incredible nest of financial bubbles in all of human history. I hate to break it to you, but chances are you’re just not prepared for what’s coming. Not even close.