Featured

Vladimir Putin Said What?

By: Justice Clark Litle

Aug 12, 2020 | News

On Aug. 11, Vladimir Putin announced to the world that Russia has confirmed a successful COVID-19 vaccine. He assured the world it was safe, and that his own daughter had taken it. “I know that it works quite effectively, it forms a stable immunity,” Putin said. “I repeat: it has passed all the necessary tests.” That last part, about passing…

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Stimulus Failure Today Means More Stimulus Tomorrow (the Stock Market Knows This)

By: Justice Clark Litle

Aug 11, 2020 | Educational

The stock market continues to trade vigorously, with the S&P 500 in touching distance of all-time highs. This bullish behavior has many investors confused. Those who are optimistic about a U.S. economic recovery think the market is looking past the short-term news and forecasting blue skies ahead. Those paying attention to the data, meanwhile, are left wondering whether the market…

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Terms You Should Know: Financial Repression and Fiscal Dominance

By: Justice Clark Litle

Aug 10, 2020 | Educational

There are two financial terms that explain what is happening right now. Most investors don’t know these terms, but they are common knowledge among central bankers. The Bank of International Settlements, also known as “the central bank for central banks,” has even published white papers discussing them. The terms are “Financial Repression” and “Fiscal Dominance.” Financial Repression is about what…

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How Supply Shocks Create Stagflation (and Why We’re Headed That Way)

By: Justice Clark Litle

Aug 07, 2020 | Educational

Inflation is a funny thing. It comes in different varieties and can show up in different places. As such there is no “one size fits all” version of inflation. The classification really matters. Take the difference between asset price inflation and wage inflation, for example. It is often the case that one exists without the other. Equity and real estate…

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Gold, Bonds, and Equities are All Saying the Same Thing

By: Justice Clark Litle

Aug 06, 2020 | Educational

There is a narrative that says the market has lost its mind, and that divergent market signals no longer make sense. The market is broadcasting multiple messages, and the messages are in deep conflict. Through this interpretation, three areas in particular — gold, bonds, and equities — are in direct conflict, and seem to be at odds with each other….

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Ugly Goldilocks is Turning into Mutant Goldilocks

By: Justice Clark Litle

Aug 05, 2020 | Educational

A number of years ago, long before Jerome “Jay” Powell became Chairman of the Federal Reserve, your editor proposed something called the Ugly Goldilocks scenario. You likely know the children’s story of “Goldilocks and the Three Bears.” Goldilocks didn’t want the porridge that was too hot, or the porridge that was too cold. Instead she ate the porridge that was…

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The U.S. Dollar Just Had its Worst Month in a Decade

By: Justice Clark Litle

Aug 04, 2020 | News

In the month of June, we sent a report to TradeSmith Decoder subscribers titled “The Best Time to Buy Gold Stocks in 90 Years.” The report emphasized the precious metals stocks we liked best — many of which were purchased for the TradeSmith Decoder model portfolio — and noted the likelihood of accelerated currency decline. In the following month, July…

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Big Tech is the Zero-Coupon U.S. Treasury Substitute

By: Justice Clark Litle

Aug 03, 2020 | Educational

As U.S. Treasury yields fall toward zero, and the Federal Reserve deliberately erodes the value of U.S. debt, investors will be forced to seek new safe havens. A broken and dysfunctional U.S. Treasury market, no longer appealing in terms of yield income or downside protection, will create a bond-sized hole in a great many investor portfolios. That hole will have…

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The 60-40 Portfolio is On Its Last Legs

By: Justice Clark Litle

Jul 31, 2020 | Investing Strategies

The 60-40 portfolio has been a cornerstone of retirement strategy for decades. Around the United States and the world, hundreds of millions of retirees have had, or still have currently, some version of a 60-40 portfolio.  For American retirees, though, a serious problem looms. The 60-40 portfolio is on its last legs. It is simply going to stop working as…

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How the Gold Price Could Go Parabolic in a “Reverse Bank Run”

By: Justice Clark Litle

Jul 30, 2020 | Educational

If you think the recent moves in gold and silver are wild, buckle up. There is a realistic scenario where the gold price goes full-on parabolic, and it could happen at any time. If this scenario takes hold, we could see the gold price blast through the $2,500 level, or even the $3,000 level, within a timeframe of weeks or…

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