GOLD (Inflation Hedge)As previously mentioned in my outlook of SPY , the best way to play this is ticker GOLD. Barrick recently breached the 200 day MA and is currently resting here. Today it traced back down to 200MA and went back up. There are buyers here waiting to see what happens. If you read my SPY idea, you can look back and see what happened around the end of 2018. Gold Futures went up alot but was also trading between 1200-1300 per ounce. Current Gold Futures is at 1890! I see a big huge upside for Barrick here. I hope you see it too.
Inflationhedge
A good old hedge against inflation If inflation is given and interest rates do not rise, expect negative real rates on long-term bonds. If inflation rises faster than the possible rate hike, expect negative real rates on long-term bonds.
If real rates on long-term bonds fall, expect a rise in inverse ETFs like this one. They have been one of Burry's bets to protect himself from the inflationary escalation that he foresees.
AMEX:TMV
The latest report of the portfolio positions of Scion Asset Management was published last Monday, May 17, I recommend checking it out.
Vix could have one last spikeThe VIX could have one last spike left in it before it settles down for this secular bull market run. When it settles down it should settle below the '20s but until then a potential catalyst for another spike could be the June 10th CPI release or if a member of the Fed mentions tapering. If numbers come in hotter than expected again, there could be a frantic sell-off accompanied by a spike in the fear index as people worry it is non-transitory.
I am still overall bullish on the market since we are in a secular bull market but corrections are normal, healthy, and necessary in order for the market to take the next leg higher. BMO came out with a year-end target on the S&P of 4500. Some projections show that inflation could run hot for 6 months, which would be transitory. As for the damage it could do to the underlying economy, that is unknown. As for equity, stocks are a natural inflation hedge.
The Inflation has LandedThe media has recognized and confirmed what we have been warning about for some time, that inflation was on the way. Well it is finally here.
‘The accommodative/bailout policies of Greenspan and his protégé Bernanke as figureheads of federal intervention and involvement into financial and monetary affairs and their ability to arbitrarily yield federal power have done nothing more than turn market participants into Pavlov’s dogs. The money they have materialized and forced fed into the global financial system without any commensurate increase in production in their economies is money in search of mischief and is very likely to find it…in the form of very serious inflation.’ theimpartiallens.com March 2015 & 2020
‘The powers that be have had to intervene in every crisis we’ve had since the 1980s. and since The Great Financial Crisis of 2007, we now realize that we can never ever stop printing money. It is inflate or die’. theimpartiallens.com February 2021
Cost-Push Inflation
The only people who can’t see the inflation are the authorities who are printing the money. They use the corrupt and decades old revision of the CPI. Meanwhile inflation is rampant in the real world. We mentioned in the following piece theimpartiallens.com that inflation manifests itself in different ways. It can go into stocks, bonds, foreign countries, oil, crypto, your health costs, your housing costs, educational costs, etc. The powers that be can live in denial and it’s not a river in Egypt. But the inflation we warned about that is now taking shape, the one they fear, the one that will bring about the revolutions, is cost-push inflation, especially food price inflation. They will try to disguise it for a while longer with shrinkflation, but when the masses realize that they are spending the same, but their kids are still hungry…watch out!
One of our favorite investment themes ie. 'Real Assets' has finally caught a bid since the summer of 2020 as we can see from the performance of the following ETF’s:
Agriculture (DBA) +45%
Commodities (DBC) +72%<
Base Metals (DBB) +69%
Agri-Business (MOO) 75%
Uranium (URA) 112%
WTI Crude Oil (DBO) 111%
Water (FIW) 64%
Palladium (PALL) 61%
Brent Crude Oil (BNO) 117%
Rare Earths (REMX) +172%
Copper Miners (COPX) 300%
Lithium (LIT) 148%
Cannabis (YOLO) 150%
Time to Rebalance Portfolios?
No harm in taking SOME crypto gains and buying some real stuff! Gold, Silver & the mining companies look interesting here. We went long the following six ETF’s in March/April 2020 in anticipation of upcoming inflation: GDX (Gold & Silver Miners), GDXJ (Junior Gold & Silver Miners), WPM (Gold, Silver, Palladium, Cobalt), WTR (Water), GLD (Gold), COW (LIvestock).
‘Nobody ever lost money taking a profit.’ Bernard Baruch
“Art is making something out of nothing, and selling it.”
― Frank Zappa
theimpartiallens.com
Upper Channel ReversalDrawing a channel, we see a short-term potential place for a reversal.
If we do come back, the lower trend of the channel could act as a good level for a re-entry trade.
5 day moving average on a closing basis, has been working well as a short-term trend level to ease some of the position to maintain gains.
AMAZING opportunity in GOLD. Price target 6000usd (3/3)This is publication 3 out of 3.
Please give my idea a like if you found it useful.
Chart 1:
Chart 2:
History might not always repeat itself, but it often rhymes. The similarities between these charts are astonishing. The chart on the left shows us how the gold price was setting up before the parabolic bull run in the end of the 1970s. Check out the charts above for a closer look.
Gold is nearing the end of its long consolidation period. Gold is ridiculously undervalued at this price. With strong fundamental support, this Cup and handle pattern will launch the price of Gold into the sky.
Okay, so we have a buy setup here, but where did I get my price target from?
Why do I say 6000usd as ultimate target? Well, honestly, predicting the top is going to be very difficult. Maybe we go above 6k, or maybe we top out a little below. If we compare the fib levels to the parabolic bull run in the end of the 1970s, we can see that it wicked above the 4.236 fib level. Going to the 2.618 fib level at 5400, and even wicking above - up to the psychological level at 6000usd, is not unrealistic technically speaking. I would not be surprised if we even overshoot the 3.618 fib.
We also have a variety of different correlations that supports a big growth for Gold , like the gold to monetary base ratio.
I don't have the time right now to go in depth about all the fundamental factors in play here, but here are some pointers:
- Negative real interest rates
- Gold is a tier 1 asset - store of value
- Massive currency creation
---------> inflation inevitable, -> currency crisis
we can already see signs of inflation - commodity prices are soaring
As soon as money velocity speeds up again - inflation will accelerate
-Uncertain times and political instability -> People tend to put their money in a safe asset ( Gold = Safe haven) when times are uncertain
-More retail investors in the financial markets - we have seen a massive surge in retail investors and traders the past couple of years - people are becoming more informed about how the financial systems work. When crypto cools down, and all the new retail investors who thought crypto would be the best inflation hedge realise that they should diversify into other, less speculative, assets - such as Gold and other precious metals, we will gain a lot of momentum.
AMAZING opportunity in GOLD. Price target 6000usd (3/3)This is publication 3 out of 3.
Please give my idea a like if you found it useful.
Chart 1:
Chart 2:
History might not always repeat itself, but it often rhymes. The similarities between these charts are astonishing. The chart on the left shows us how the gold price was setting up before the parabolic bull run in the end of the 1970s. Check out the charts above for a closer look.
Gold is nearing the end of its long consolidation period. Gold is ridiculously undervalued at this price. With strong fundamental support, this Cup and handle pattern will launch the price of Gold into the sky.
Okay, so we have a buy setup here, but where did I get my price target from?
Why do I say 6000usd as ultimate target? Well, honestly, predicting the top is going to be very difficult. Maybe we go above 6k, or maybe we top out a little below. If we compare the fib levels to the parabolic bull run in the end of the 1970s, we can see that it wicked above the 4.236 fib level. Going to the 2.618 fib level at 5400, and even wicking above - up to the psychological level at 6000usd, is not unrealistic technically speaking. I would not be surprised if we even overshoot the 3.618 fib.
We also have a variety of different correlations that supports a big growth for Gold, like the gold to monetary base ratio.
I don't have the time right now to go in depth about all the fundamental factors in play here, but here are some pointers:
- Negative real interest rates
- Gold is a tier 1 asset - store of value
- Massive currency creation
---------> inflation inevitable, -> currency crisis
we can already see signs of inflation - commodity prices are soaring
As soon as money velocity speeds up again - inflation will accelerate
-Uncertain times and political instability -> People tend to put their money in a safe asset (Gold = Safe haven) when times are uncertain
-More retail investors in the financial markets - we have seen a massive surge in retail investors and traders the past couple of years - people are becoming more informed about how the financial systems work. When crypto cools down, and all the new retail investors who thought crypto would be the best inflation hedge realise that they should diversify into other, less speculative, assets - such as Gold and other precious metals, we will gain a lot of momentum.
AMAZING opportunity in Gold - price target 6000usd. (1/3This is publication 1 out of 3.
Gold is nearing the end of its long consolidation period. Gold is ridiculously undervalued at this price. With strong fundamental support, this Cup and handle pattern will launch the price of Gold into the sky.
6000 USD/Ounce is my ultimate target. Check out my other publications to get a better understanding why the Gold price will soar, and why I think 6000 is a realistic target.
Time to test the weekly trend - Possible breakoutSilver is looking to test the weekly TA trend. This could possibly be the beginning of a new bullrush if the resistances shown on the chart are broken. It would likely mean the start of more volatility but also a larger uptrend.
With macro looking the way that I've mentioned previously I'm decidedly positive and long silver.
Let's see where this takes us and if my speculation is correct. I'm merely a TA noob, so don't take my ideas all that serious yet even if my fundamental analysis perspectives are more mature.
alt coins will move in tandem with BTCDogecoin has been building up in value and has become more relevant. The nice thing about Dogecoin is that you can load the boat because of the penny price.
It appears to have pulled back enough after raging. And just like bitcoin, it will come raging right back. Go long and load up now while it's down. Never do more than 5% of your portfolio.
Go long on GBTC if you can't buy crypto directlyGBTC will move almost identically to bitcoin, it's an ETF from Grayscale Funds that tracks, you guessed it, bitcoin. JP Morgan just gave bitcoin a possible price target of $146,000. Tim Lee from Fundstrat, a very reputable analyst, gave it a $100,000 price target.
If you can't buy crypto directly in your trading account or retirement account, you can get exposure to the bitcoin boom through this avenue. Go long GBTC because it will follow right along with the actual bitcoin crypto and is a great way to get exposure.
This will also act as an inflation hedge.