It’s the day after Christmas, so I’ll keep this short…
I wish I could say it’s a good thing that central banks have kept this third and final bubble going this long. The truth is it’s about to end. QE is failing and promises for fiscal stimulus are likely to be too late.
This totally irrational “Trump rally” may go on for a few months into 2017, but by early-to mid-2017 we may see the start of the greatest crash of our lifetime.
So, let’s celebrate while things are still good; but, at the same time, start preparing for the inevitable crash and debt/financial asset deleveraging that is way overdue.
My only advice on Christmas gifts is: If you gave a loved one any gold jewelry, take out put options against gold to hedge! Gold stands to devalue 40% or so in the next year!
Thanks for being loyal subscribers in a time when this bubble we are warnrning about seems to have no end…
Just remember that bubbles always burst… and so will this one. It’s just a matter of time. And time is running short.
You don’t get to spring without going through winter – just ask Japan. And the worst of the economic winter is ahead. Stimulus efforts to prevent this will only make it worse.
So, my advice is to squirrel away your nuts for winter.
If you do that, this Christmas may be your best ever!
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