my crisis-proof investing colleague and friend Roland Leuschel sent me this exciting article today:
“As Claus Vogt wrote to you last week, Jay Powell, head of the Fed, the world’s most important central bank, has now publicly and unequivocally stated that there will be no rate hike until at least the end of 2022. In plain language, the Fed will buy unlimited debt securities (government bonds, mortgage bonds, commercial papers) and thus guarantee a return of less than 1%, regardless of how inflation rates develop for consumers.
Now it’s your money!
The idea behind it is clear. Powell knows that any rate hike, however small, would bring the currently over-indebted financial system to collapse. For you as a saver, this means that you will not only be punished, but expropriated, because with negative returns of 4 to 6% per year, the loss in value progresses rapidly. And if the calculation is correct, the devaluation of money is already considerably higher than the official figures would like us to believe.
Alternative investments in stocks and real estate would only bring you losses if the economic development continues to be weak, even if prices could continue to rise temporarily due to even more massive floods of money. The fact is, the fundamental valuation of the US stock market is extremely high, which has always led to significant losses in the past.
Gold is your safe haven
We just had a first crash in March of this year. The current recovery appears to be more of a “bullish de misère”, supported by a large mass of private investors, who may not really know what you are getting into here. In any case, the recent price recovery on the stock markets bears all the signs of a so-called milk girl boom.
While the big investment companies on a large scale encourage investors to use the so-called “dips” as a buying opportunity, in my opinion you have only one way to protect yourself against the rising inflation, and that is with gold.
The Powell Gold Put
With a put you can hedge against falling prices on the stock exchange. The monetary policy path outlined by Powell is bullish all around for gold. That’s why I see it as a put for the gold price that you received as a gold investor from the Fed.
Don’t forget that M1 and M2 in America grew 34.9% and 23.6%, respectively, within a few weeks. So the money overhang is huge.
Johann Wolfgang von Goethe already taught us in his “Faust”: “What you have in black and white can be safely carried home.” And Powell’s speeches can be downloaded from the Fed’s homepage. Current monetary and sovereign debt policy is extremely irresponsible and dubious. That’s why I advise you on gold, which has proven itself as a real investment for over 5000 years.
This bubble will also burst
My old acquaintance and companion Jeremy Grantham, one of America’s most successful stockbrokers, has just loudly warned against the bursting of the current speculative bubble on the stock market – and has positioned his wealth management accordingly.
I can only advise you to protect yourself, your loved ones and your wealth in good time. Better today than tomorrow! You will find selected precious metal investments that do just that in Crisis Safe Investing. Test our crisis-proof investing letter now for 30 days free of charge! “
So much for the latest from Roland Leuschel. I wish you a nice weekend,
Claus Vogt, editor-in-chief, crisis-proof investing
P.S .: We are currently working flat out on the new crisis-proof investing Main issue with the title: “Precious Metal Shares Part II”, which will be released on June 30th, 2020. Order now crisis-proof investing!
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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