I think we already have the answer. Not only are all risk assets tanking today, but most of the value names we own have solid gains. It's just that metals and miners are caught up in the selloff. I expect those losses to be recovered quickly.
Rick Rule: Gold will do well over the long term, but expect short-term volatility.
In the short term, as a consequence of the Iran war:
- Countries have to sell gold to fund domestic needs
- Higher interest rates make the USD more attractive vs gold
In the long term:
- The US can't afford high rates
- Debt-to-GDP is too high
- Deficits are surging
Which will result in massive money printing and a severe loss of purchasing power for the USD in the coming years, reminiscent of the 70s, which will be bullish for gold and other hard assets.
Short term pain, long term gain
🚨 THIS IS NOT NORMAL
In the last 30 minutes:
Silver: -9.10%
Platinum: -5.90%
Bitcoin: -5.46%
Palladium: -4.79%
Gold: -3.71%
Trillions just disappeared from the market.
We’re moving into an extreme statistical event.
Something that has NEVER happened in the history of finance.
That’s more than the GDP of 99% of countries erased in minutes.
This is the start of a FORCED LIQUIDATION PHASE.
Liquidity is vanishing.
Funds are getting margin-called.
Positions are being closed.
They’re selling whatever still has value just to stay alive.
Reminder: I’ve called all the market tops and bottoms for the last 15 years, including the Bitcoin bottom at $16,000 and the top at $126,000.
The next call will be even more important.
When I exit the markets completely, I’ll post it here publicly like I always do.
Turn notifications on. If you’re not following yet, you’ll understand why that was a mistake later.
🚨 “The next stop for silver, technically, is actually $175 per ounce.” -Chris Vermeulen
Chris sat down with Craig Hemke & explained why silver's long-term technical setup points to SIGNIFICANTLY higher prices, while cautioning that a short-term move toward $40 could still happen first before the next major advance:
https://t.co/Xlp5RpwFoC
AI stocks now account for 40% of the entire US stock market.
That's the same concentration we saw before the 2000 Dot Com bubble pop and the 1929 Great Depression collapse.
Is History about to repeat itself?
A thread 🧵