Market Rundown | This Note is For You
One Way to Navigate What's Coming
Housekeeping: Started reading a report this morning that echoed things said in here many times, but it it also put a finer point on it. Half-way through I stopped reading and started writing. The full report itself is included at bottom along with the usual other goodies. The hastily written genuine message included is about the future, definitely mine and my children’s, possibly yours too. This note is for you. Thank you for subscribing and reading. Please pass it on so we can do more.
Market Rundown:
Good Morning. The dollar is lower by 12 points today. Bonds are slightly stronger. Gold is up after another day of recessionary short selling, but Silver is down again almost 22 cents. Stocks are lower between 60 adn 120 bps. Crude is down $1.50. Nat Gas is up 2 cents and grains are mixed with Soy being positive. Crypto continues to bleed with stocks.
EXCERPT: This Note is For You
Authored by GoldFixSubstack with notable excerpts
What's This For?
End of an Era: The Future is Here
Globalization and its Benefits in Retreat
The Opposite of Goldilocks: Tight Monetary and Loose Fiscal
Spending Causes Inflation While Rates Chase Inflation
Who Suffers and Who Benefits?
How Will Monetary and Fiscal Policy Do This?
The Buffett Tide Analogy Applies
If you are:
Young deciding on a career; use this to help you chose not just what you love, but what you want to be well paid doing. - been there.
Running a small business; position yourself to benefit from the industries that will get tailwinds from these policies, and avoid the headwinds they will cause. - parents, uncles, aunts, friends, all were there
Confused, don’t care, or just want to live your life; get a government job and watch it happen to everyone else. - know those who did. Pretty smart
Below the poverty line but still trying; gov't help is only given to those that surrender autonomy. But pride goeth before the fall.- been there too
Sitting pretty near the top; adjust your holdings accordingly to benefit from the changes that are here.- there too.
This note is for you.
Here are the industries that benefit and do not from current legislation: Who Benefits From Fixed Supply-Chains?
End of an Era: The Future is Here
"With interest rates surging, investors are worried about the sustainability of government finances. History shows there are two ways to deal with a public debt problem: the “orthodox” approach (austerity, structural reform, etc.) and the “unorthodox” (default, inflation and financial repression). Governments tried the orthodox approach after 2008 and it failed. Now there is no way back." -TS Lombard's Dario Perkins
The perma-zero interest rate era is over, and investors can no longer rely on ideas that were helpful in the 2010s. Interest rates and inflation will stay persistently higher.
You will pay for it...
The “rules” that helped investors navigate the pre-COVID era, such as MMT, no longer apply. As part of this new regime, we are also seeing the start of a profound shift in the global monetary-fiscal mix, which will create new dynamics for financial markets.
Investors can expect “mild” financial repression, with central banks set to tolerate higher inflation than in the past.
The obvious vulnerabilities are those countries/industries/people that either lack monetary sovereignty or are excessively dependent on external financing. Markets are beginning to identify the main weaklings. We hope this note helps you, the individual subscriber who also needs to navigate the future global economy for yourself and your family.
Who Suffers and Who Benefits?
Monetary policy will remove money broadly from the markets by raising rates and making funds harder to come by for all. Fiscal policy will insert money into two areas: Those industries it deems “key” for the future economy (via industry subsidies), and those poor who need help (inflation relief) in return for votes and not rioting. Everyone else is on their own. Not a judgment, a reality.
FULL NOTE AND REPORTS CONTINUE AT BOTTOM