Thank the IRS for Sell Season | Market Rundown
On a Bizarre and Unsustainable Path...
Government, wherever it asserts power, distorts commerce to the market’s detriment and the parasitic bureaucrat’s delight.
Good Morning.
Today:
Silver and Government distortions
Market Rundown
Zen moment- We’re here to help
Report excerpts.
MUFG- on the sustainability of Fiscal policy
ANZ- on commodity shortages
Manipulation is only one type of government distortion. Government’s mere existence is another.
1- Silver Selling and Government Distortions
Continue to expect pressure on metals that defies economic expectations right now for several reasons, not the least of which is Sell Season is here.
Facts and Observations
The very big funds are just beginning the process of unwinding their futures positions slowly.- Fact
Many of them end their fiscal year in November, in order to prep for the new investing rounds that come in December.- Fact
This usually means a mechanical downdraft begins between now until October. This can be offset by real events like war, credit problems etc. But absent meaningful news.. the markets are held hostage by Fund mechanics this time of year.- Observation
The Silver lining is: not just the buy season that comes in November.. but sometimes in metals like Silver, we get an opposite effect during “Sell Season”.- Empirical Observation