Worldwide, reports come from the real economy that allow a comparison with the Great Depression of the 1930s. While the bond markets were taken over by the central banks and de facto abolished as free markets, prices on the stock exchanges rose.
The Great Depression spurred the stock market
The NASDAQ 100 index has almost reached its February high again this year and has even been up since the beginning of the year. The Dax is still 15% away from its all-time high. After the severe losses in March, this is sold as a great success in the stock market reporting.
I don’t know about you, but it seems to me that the full extent of the economic catastrophe caused by the forced shutdown of the global economy has not yet reached most people. Instead, there is a belief that governments and central banks will rock the child. The rising share prices give the impression that everything is good. In view of the facts and figures, it should be clear to everyone that there will be bankruptcies and mass layoffs and that there is a long dry spell ahead.
In contrast, my belief in the skills of politicians and central bank bureaucrats, which is strongly influenced by the knowledge of economic history, is very limited. If politicians and central bankers have proven anything, it is their ability to lead the state into bankruptcy and paper money into worthlessness.
We will see where the gigantic rescue and redistribution measures that will now begin will lead, the financing of which will come from additional debts and the uninhibited use of the money printing machine. Anyone who knows financial history must be skeptical about this development – and take precautions.
Gold up 14% since the beginning of the year
That is why I continue to recommend you, more than ever, a high proportion of gold in your investment. As I have explained in detail several times in the market commentary in the past few months, gold is in the early phase of a long-term bull market. This bull market is driven above all by the completely dubious monetary and sovereign debt policy, which is now in the process of entering a new dimension.
Gold has risen 14% since the beginning of the year, and 34% in the past 12 months. In the euro and numerous other currencies, the gold price has risen to new record highs in recent weeks. However, there is little fuss in the press. That’s a good sign.
Buy signals also for silver – plus 3 new buy recommendations
As another important confirmation of the gold bull market, I consider the fact that there have been important buy signals for silver in the past three weeks. A detailed discussion of this exciting and important development and three new purchase recommendations can be found in the June issue of my stock exchange letter Krisensicher Investieren, which was published on May 26.
Silver price per ounce in $, 2018 to 2020
An important momentum indicator, not shown here, has already given a buy signal that speaks for the breakout over the marked resistance line and a further significant price increase.
Don’t let politics and central bankers freak you out. Find out at the highest level and protect yourself against the foreseeable consequences of a completely irresponsible monetary and debt policy. To find out how you can continue to benefit from the large gold bull market, go to Crisis Safe Investing – test it now for 30 days free of charge.
Claus Vogt, editor-in-chief, crisis-proof investing
P.S .: Minion economy: How the asset manager BlackRock and Bank of America cash in with the Fed risk-free can be found in the current issue of Krisensicher Investieren.
P.P.S .: If you want to get through this crisis safely every week, please request the free Claus Vogt market comment here today easily with your email.
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