Market Rundown | Eyes Wide Open on Stocks, Bitcoin, and Gold.- Please Read
How Banks Make Recommendations
Good morning. The dollar is flat. Stocks are up small. Bonds are also flat. Gold is down $3 post option expiration. We highly recommend listening to today’s [odcast for a recap of yesterday’s activity.
Silver is slightly lower. Crypto is weak, but ETH is very weak. Crude is up 70 cents and Nat gas just popped again, up 20 cents
Tech Stocks, Bitcoin, and Gold. What JPM and BBG Are Saying Right Now.
JPM has come out in favor of Bitcoin at these prices which is odd since last year at these prices they hated it.
A day later Bloomberg is also making a similar case to own Bitcoin vs stocks. We know from where this comes. It comes from investors now asking for alternatives to stocks given the recent volatile behavior. Then analysts react by creating narrative as pretext to keep their assets in house.
This is not a cynical statement at all. It is a true one empirically backed. Just know from where it comes. They need you to keep your assets in house. That is how they make money. Therefore, the recommendations are always first an attempt to retain your assets. And if they are right, you make some money. The ones who do not do right by their clients eventually lose those clients. The investor must decide with eyes wide open. This is how it works.
Right now people are heavily questioning their investment in stocks. Bonds offer little to no safety. Gold benefits for sure, as we have stated as recently as last week.
From THIS IS WHY YOU BUY GOLD:
[Gold’s] inverted correlation with stocks will hurt their inflation fighting plans 2 ways. First, it will call attention once again to Gold as a safe haven from stock volatility. This will dampen bond buying. Second, it will simply start to do better than stocks. Buyers originally for safe-haven use will begin to see gold not just as a parking spot, but as a source of profit.
The problem for the banks is this: Outside of ETFs in Gold and Silver, there is little bank analysis of Gold miners they do. Additionally, most miners are in our opinion poorly run, and therefore you must have a specialized skill in identifying good miners in which to invest. Some GoldFix readers are indeed experts in this area, and we suggest you find your own as well! We will share what we learn, as always.
So, you can only put so much money into Gold, and they really know nothing of the mining industry anymore. But client assets must be kept in house. What do they do? They find something else to put money in.
Therefore the narrative of “lets buy some bitcoin” starts to come out.
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