Lions... FYI.

From Greg M

Lions... below I have summarized the six "Trump Market Dynamics" currently in play. (I GOT YOUR BACK! ALWAYS). GM

Trump’s selection has put several new dynamics into play.

1. Expect the current stock market multiples expansion cycle to accelerate and continue. This mechanism/euphoria will be responsible for inflating a much bigger/fatter stock market hyper-bubble.

2. Bank deregulation. After We the People were forced to BAIL OUT the banks during the “Financial Crisis,” regulations were put in place to prevent that from happening again. These regulations WILL BE ROLLED BACK. Expect investment banks to again engage in WILD speculative trades, especially in the derivatives markets. Potentially rolling back regulations can be VERY profitable for banks- but it also opens the door for more public bailouts IF these banks make bad/questionable bets. (Which they certainly will).

3. Potential for negative rates. There are ONLY TWO fundamental truths in economics and finance. One- to have a strong economy you need a strong currency. And two, to have a strong currency you need a corresponding rate of interest high enough to support the purchasing power of the currency. Today, these two fundamental truths have been turned UPSIDE DOWN, and in doing so they become an economic WRECKING BALL… However, by flipping these two fundamental truths, they then become MASSIVELY stock market positive. What we can all be certain of is again, for as far as the eye can see and beyond, artificially suppressed rates and obviously therefore a weaker currency/loss of purchasing power.

4. A lower standard of living for the middle class. All MAGA will turn out to be is a continued mechanism as to push wealth UP the food chain, faster. Here, the people of the US and the world continue to be sold an EPIC LIE, and that is BY MAKING THE RICH RICHER WE ALL DO BETTER. Really? How is that working out for you? Because it is this very mechanism which had led to the current economic disaster area-WORLDWIDE! As every single so-called developed nation on Earth are each DEEPLY entrenched in what is known as “trickle down” economics.

5. GLOBAL DEBT/US DEBT WILL CONTINUE TO SKYROCKET. Today the US debt to GDP ratio stands at 122%. Moreover, the global debt to GDP ratio stands at 333%. These numbers are staggering and irrecoverable. Here, we can make an easy connection. As global debt SURGES ever higher, so do world stock markets. MASSIVE DEBT CREATION, and artificially suppressed rates, continue to drive cash into risk assets. This mechanism will continue, faster, right up to the bursting of the debt market HYPER-bubble.

6. CASH SEEKS YIELD. What this means is by “MAGAizing” the stock market, banks, and the crypto markets will outperform, while commodities will underperform. However, it also means that commodities across the board will be even MORE ONSALE. By cash seeking yield and MAGAizing the markets, the game will remain Risk-On, meaning that cash will flow disproportionately into risk assets/stocks, and cryptocurrencies. Moreover, global debt will also HYPER-BALLOON. The hyper-ballooning of world debt will accelerate, further and faster. (And this situation would have occurred regardless of who was selected as Puppet, I mean President).

Understanding that gold and silver ARE anti-debt units and will be ON-SALE for the foreseeable future, right up until the bursting of the world debt bubble, HERE, with gold and silver being more on-sale than ever before relative to virtually every other asset class due to the current dynamics in play, we have been given a gift.

To read the entire article, click here: https://gregorymannarino.substack.com/p/magaizing-the-markets-gold-and-especially