Sell America & Buy Gold

Next Wednesday’s PCE report could provide the first hint of the amount of coming stagflation. The US government’s tariff tax tantrums are the catalyst for it, but this stagflation was cyclically due to occur anyways. The full picture of how much inflation and economic growth slowdown lies ahead probably won’t become very clear until the 90day moratorium on new tariffs has ended.

Even then, there could be new tariffs and new moratoriums, adding to the already-enormous amount of confusion for millions of American small businesses… businesses being relentlessly pounded by the president’s bizarre scheme to make the final stage of the American government and fiat empire great.

The US government should levy taxes on Americans and the rest of the world, but only indirectly. If a tiny transaction tax was collected on every electronic movement of the dollar (to replace all other forms of taxes and government fees), the revenue would be gargantuan, the IRS goon squad would be no more, and America would quickly become a super-sized Monaco, with millions of business builders racing to incorporate there.  

Sadly, the carrot is of little interest to most governments, and the stick is worshipped with gusto.

Stock market investors feel the excitement, but not in a good way. Still, a huge “rally of surprise” may be about to occur, and it could be so big that it convinces amateur and professional investors alike that the decline is over… when in fact what has occurred so far is probably just the tip of the bear cycle iceberg.

This is the US stock market chart. The indicated action is a massive bear market, and it’s probably now the most likely scenario.

This is a horrifying CAPE/Shiller inflation-adjusted PE ratio chart. Even before the government began blasting the nation’s citizens and businesses with its tariff tax cannons, the US stock market was vastly overdue for a stagflation-oriented crash.

Even after the latest meltdown, the stock market is still as overvalued now as it was at the peak of 1929. The Fed should hike rates pre-emptively, to empower savers and reduce the inflationary horror that lies ahead, but that’s unlikely to occur.

This is the long-term cycle averages cart. The carnage likely continues to around the year 2032 and is followed by extended basing before a new bull run of significance begins.

The rush to “Sell America” is on; the bond market is falling and doing it while the stock market incinerates. The bond and the dollar are the fiat world’s safe havens, and both have failed.

Months ago, I suggested that the USDX (dollar index) was poised to plummet to par, and it would be accompanied with $3200-$3500 gold.

That has transpired, and now the psychologically important threshold of 100 has failed. The bottom line is that more than just de-dollarization, “Sell America Permanently” is the investor theme.

It began as de-dollarization with Obama’s vile FATCA scheme, gathered steam with Biden’s hideous debt-funded wars and mandatory drag queen shows for the nation’s youngest and most vulnerable children, and it’s reaching a crescendo with “Pirate Donnie” and his maniacal tariff tax attacks. 

A daily focus on the big picture is critical for investors as inflation, tariff taxes, a wildly overvalued stock market (that is now on fire), debt ceiling horror, empire transition, and potential gold revaluation dominate the investing landscape. I cover this big picture 5-6 times a week in my flagship Galactic Updates newsletter. At $199/year, investors feel the price is too low, but I’m offering a $179/15mths “special offer” that investors can use to get in on the winning action and meticulous analysis. Click this link to get the offer or send me an email and I’ll get you a payment link. Thanks!

Tactics for fiat and gold? 

This is the yen vs dollar chart. While a short-term pause is likely, a surge to 80 and then par (100) is probably coming.

The yen may get new legs as a safe-haven fiat, and if that happens, a rally to par probably is accompanied with gold hitting my long-term $6000 target price…

But there could be an overshoot as the “Sell Anything America” theme gathers steam, and the US stock market collapses while rates begin to soar. Investors need to be open to numbers like $10,000, $15,000, and $20,000 for gold as a 40-year inflation and rising rates cycle plays out.

For frightened dollar holders, the yen, the Swiss franc, and the euro are probably the best choices for fiat, but the Canadian dollar could become a fiat leader if oil soon embarks on my projected rise to all-time highs.

My suggestion is to stay focused on gold.

Gold looks like a runaway train and basis chart maestros Edwards and Magee, when that happens one tactic to consider is placing a stoploss under the previous day or week’s low.

In the current situation, that would be about $3193. 

Gold’s superiority versus fiat is so great that it’s generally a waste of time for investors to try to call fiat price tops for gold.

There have been only four times in the past 50 years where fiat has managed to consolidate or rally against gold. It’s far more prudent to focus on buy zones… to get more supreme money gold!

Small buys can be made at $3350 and $3250, and bigger ones at $3167 and $3050. Supreme money accumulators should use simple tactics, and avoid the use of too many price projections, trendlines, etc. Gold is supreme, which means it’s also a much simpler item to handle than many investors realize.

Miners? 

This is the GDX versus gold chart. Miners are the most undervalued sector now… and arguably the most undervalued in the entire history of markets! For a look at the monthly GDX chart:

The $55-$67 area is significant resistance, but what is likely to occur is more of a pause than a crash… followed by a surge to the $100-$120 target zone highs. Short-term traders can book profits as the price nears and enters the resistance zone, but they should also be sure they own lots of supreme money gold!

Thanks!

Cheers

St

Special Offer For Gold-Eagle Readers: Please send me an Email to [email protected] and I’ll send you my free “Get Jacked With J!” report. I highlight key GDXJ stocks that could surge after Fed man Jay’s speech this week! Both core and trading position tactics are included in the report.

Stewart Thomson

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Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualified investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:

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