Mother Of All Bubbles.

I am sure most of the other ‘old-timers’ like me will agree that this isn’t a real market anymore. No, I’m not talking about the tech bubble 2.0 (pun intended). As big as that bubble is, and it will be dozy when it finally blows, we’ve seen its likes before, obviously in the 1990s as well as housing in 2000s or oil in the 1970s or Japan in the 1980s.

No, the reason why I’m saying that this market is no longer a real market is because of the Fed has effective nationalized these beloved former bastions of capitalism. Now the daily price action seems to be some form of virtual risk-less gaming, driven by pubescent know-it-alls using their dad’s Robinhood account. My kid asked to do it too, by the way. I told him he couldn’t because of the compliance hoops I’d have to jump through. So he’ll get his butt whipped by the market once he’s in college in his dorm room (whenever that happens).

Forget The Walking Dead show, if you want to see real life zombies, just check out the list of un-dead companies that couldn’t survive on their own. Yes, I get it. The Fed did it to save us from the abyss in 2008 with QE1 (I’m not counting the prequel liquidity lines in 1999 as a precaution against Y2K blowing us up) and then in March, 2020 when all drops just didn’t stop. BIG F’ing THANK YOU, Fed! You’re the ones who created this fragile climate in the first place. After the tech bubble of the 1990s, then the housing bubble of the 2000s, you have now gone all out with a Hail Mary pass to create the Mother of all Bubbles. And appropriately it will likely be remembered as the Central Bank Bubble. The market is addicted to your crack QE and other liquidity drugs and it can’t get get back on its own two feet. Adam Smith’s creative destruction has morphed into internal decay. The Fed is kidding themselves that they can get out of this quagmire, they’ve been saying that since 2008.

But, rant as I may, we still have to put our money somewhere. History is the roadmap and the market is already guiding us along that yellow brick road to Gold. Yes folks, good ol’ fashioned gold is kicking butt again as the best performing asset class this year. Who would’ve thunk? As a matter of fact, a bunch of did, myself for one, along with Peter Schiff, Fred Hickey, DTap, Grant Williams and the good folks at Real Vision to name a few. If you think the climb to 1900/oz is just the beginning, you’re absolutely right. My guess is we see it easily move up to $3000/oz and then grind up $5000 through fits and starts beginning a parabolic move to who know where sometime in the next 5 to 10 years.

So buckle up, Chester, this is going to be one helluva ride!