Words of Wisdom for the Year Ahead

14 Jan

Words of Wisdom for the Year Ahead

What they are saying about the gold, stocks, and the year ahead…

Another hike in the debt ceiling.  That’s highly correlated with higher gold.  And there are a host of things that threaten the stock market which is already in dangerous territory because of fundamentals like high price/earning ratios in a rising interest rate environment.

Those market interest rates keep climbing despite Fed rate cuts.  

Among other concerns worth noting are delinquencies on securitized office mortgages which are at a new high; credit card defaults are at a 14 year high; inventories of spec home inventories keep climbing.

What are astute observers saying about the stock market under these circumstances?  Here are a few examples.

James Rickards write in the Daily Reckoning that currency wars are back, and trade wars are coming.  But the loudest alarm bell ringing is the stock market:

“We are now positioned for an historic crash. The specific cause does not matter – it could be war, natural disaster, a bank or hedge fund collapse or another unexpected event. What matters is the super-fragility of the market when the trigger is pulled. This is why Warren Buffett has over $300 billion in cash and why central banks are buying gold. Prepare now. Don’t be the last one to know.”


David Stockman says the stock markets “have every bit the feeling of March 2000 when the stock indices peaked on March 10 and then proceeded to plunge by 30% during the next 18 trading days.”  Stockman calls the situation a “time bomb,” writing in International Man

“We are referring to the mother of all fiscal crises that will be triggered within months when the US Treasury runs out of both cash and borrowing authority under the $36.1 trillion reinstated debt ceiling. And that may not even be the first inning. The stock market has now reached a point of such extreme “irrational exuberance” that even Alan Greenspan couldn’t have imagined it when he invented the term several decades ago.”


Our final word of wisdom come from economist Steve Hanke, economics professor at Johns Hopkins University, puts his conclusion in no uncertain terms in a few words on X:

“The US stock market is OVERPRICED, OVERVALUED, and OVERHYPED.”

We think this is a good time to move the safety zone of gold and silver.  Speak with a Republic Monetary Exchange precious metals professional today.