Wealthion - Be Financially Resilient

Michael Every, Global Strategist at Rabobank, returns to the program to discuss the trap the world's central banks are in. Spiking inflation resulting from their stimulus policies is colliding with slowing economic growth. Their choice at this point is to impoverish the public through rising costs (and eventually so kill the economy) by continuing to stimulate, or plunge the debt-burdened economy direction into recession or depression by tightening. He also gives us a wide-ranging perspective on the developments in Asia (and China, in particular) and why the current lines of trade and supply chains will need to be re-drawn. See the YouTube Video for the charts and graphics: https://youtu.be/-WyEPltVWMM

Here in Part 2, Fed-watcher Danielle DiMartino Booth explains why the Fed is guaranteed to make a policy mistake no matter what decision it makes here. Taper or tightening interest rates will lead to an economic slowdown or recession that will pop the current bubble in financial assets. A continuation or resumption of monetary stimulus will worsen the growing inflation problem.

Markets will be the collateral damage to the Fed's decision. Which is why Danielle recommend investors get defensive and, at the very least, start hedging any long positions they hold. See the YouTube Video for the charts and graphics: https://youtu.be/oh1x4SOZlU0

Perhaps no single institution has more impact on the global economy than the US Federal Reserve.

And the $trillions in stimulus it and the other major world central banks have released since the COVID pandemic hit have made the system even more dependent upon its actions.

Which is why our financial markets are understandably obsessed with a single question: What is the Fed likely to do next?

To help us answer that, I'm thrilled that Danielle DiMartino Booth is returning to the program. Danielle is CEO and Chief Strategist for Quill Intelligence LLC, and was a former advisor to the Federal Reserve Bank of Dallas -- so she knows that institution, as well as the people running it, well. See the YouTube Video for the charts and graphics: https://youtu.be/3FjQpXsM0Lo

The disruption the pandemic has inflicted on global supply chains is really starting to harm consumers. Prices for most items are up double digits in the past year. And product shortages are rampant these days.

How much longer is this pain for our pocketbooks likely to last?

The world has been watching prices rise dramatically this year across nearly all asset classes -- in large part caused by the $trillions in monetary and fiscal stimulus flooding into the economy as well as the disruption of global supply chains caused by the COVID pandemic. But not only are consumers experiencing rising prices at the store, they're increasingly finding empty shelves, too.

On the supply side, things have become so bad that today guest expert, Wolf Richter, has coined the term "The Everything Shortage" to describe the era we're now entering. See the YouTube Video for the charts and graphics: https://youtu.be/Pw51DqC-cQE

They say history rhymes.

That civilizations and societies tend to follow cycles -- boom/bust, feast/famine, war/peace, cultural experimentation/a retrenchment to the “old ways”.

Neil Howe, the author of the best-selling book The Fourth Turning, lays out his prediction that today’s society has entered the "bust" part of our current cycle -- where the status quo falls apart -- often chaotically -- to be replaced by a new, hopefully better, order.

What should we expect from this period of disruption? Are there steps we can take to improve our odds of persevering? See the YouTube Video for the charts and graphics: https://youtu.be/K8Ndnpfw69w

Here in Part 2, famed researcher and demographer Neil Howe, co-author of the best-selling book The Fourth Turning, explains why the weight of history strongly suggests we are headed into a decade-plus period of economic and social disruption that will transform our political, economic, financial and social systems.

Volatility will reign. Crushing inflation looks likely. We may see a stock market crash and widespead job losses. Perhaps even war.

But as with all preceding fourth turnings, Howe predicts we'll come of it ok. Yes, with some bruises; but likely also with some net improvements for society. See the YouTube Video for the charts and graphics: https://youtu.be/eAuGfUli0gs

Energy is suddenly headline news. Oil, which traded at negative prices for a brief moment last year due to the global economic slowdown caused by the pandemic, is now expected by a number of analysts to hit $100/barrel soon.

Europe is worried about not having enough natural gas to heat its homes this winter. A petrol shortage in the UK is making it a challenge for folks to fill their cars. And prices at the pump are back near record highs in the US. And China and India are so short on coal that major metropolitan power plants are resorting to rolling blackouts to conserve fuel.

Why are so many regions of the world suddenly experiencing these energy crises?

Petroleum geologist and energy analyst Art Berman has a lot of the answers we're looking for, and I'm so pleased he was able to join us today on such short notice. See the YouTube Video for the charts and graphics: https://youtu.be/HB1eGDpEeQY

Markets have become a lot more volatile recently, violently lurching up and down, and are off nearly 5% from their all-time highs as of a month ago.

A growing number of analysts are concerned that this is the start of a larger correction. This year's spike in inflation is proving a lot less transitory that the Fed expected. Supply chains remain badly disrupted. Economic growth is slowing, particularly in Asia where the failures of massive firms like Evergrande threaten to destabilize things further. Energy shocks are suddenly happening all over the world.

It's understandable that more and more people are now asking: Is the bull market over? Is a market correction imminent?

No - says today's guest expert David Hunter. Or more accurately -- not yet.

David is Chief Macro Strategist at Contrarian Macro Advisors. He expects a further final melt-up in the markets from here....to be swiftly followed by a truly massive market crash of up to 80%.

We've been closely following David's aggressive market predictions this year, as they've so far mostly proven eerily accurate. So we're very fortunate to have him back on the program to give us the latest update on his current outlook. See the YouTube Video for the charts and graphics: https://youtu.be/Dk6G0nPioLs

Here in Part 2 of our interview with David Hunter, he shares his projections for what the investing environment will look like should the 80% market correction he expects occurs.

He foresees a relatively brief period of recovery, defined by very high inflation (20%+!) and interest rates (15%+!). He expects commodities to lead that investing cycle, with many of today's high fliers (like Big Tech), becoming laggards.

In his opinion, active investing will be necessary for investors to build wealth in this new era. The era of easy returns via passive index investing will be over. See the YouTube Video for the charts and graphics: https://youtu.be/Dk6G0nPioLs

Gold and silver both had an excellent two year run in 2019 and 2020. But they've spent much of 2021 so far in a downward drift.

Which is puzzling given how many tens of $trillions have been injected into the global system by the world's central banks since the pandemic hit last year, and the massive spike in inflation all that monetary and fiscal stimulus has caused. The prices of nearly every other commodity have risen dramatically in response -- but why not the precious metals?

And even more interesting is that the precious metals mining industry remains one of the extremely few sectors not trading at all-time bubble-level highs, despite being more profitable than ever. In fact, on a relative basis, it's almost never been more undervalued.

To help us make sense of this, we welcomeJeff Clark is returning to the program. Jeff is the Senior Precious Metals Analyst at GoldSilver.com, an expert on precious metals mining stocks, and he's also just returned from The StockPulse Silver Symposium which took place last week -- and in this video he shares the insights he found there.

See the YouTube Video for the charts and graphics: https://youtu.be/XEr7fcsXDPU