5 Chilling Reasons Your Portfolio Can’t Afford to Wait for the Trump Train
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We hear you. You see the light at the end of the tunnel of these strange times and the conductor driving the train is Trump. You think the Trump Train is about to pull back into the station and things are going to be hunky-dory again. You're waiting until then to decide what to do about gold.
Let me tell you why waiting could be a grave mistake and you could get absolutely flattened.
1. Digital Dollars and the War on Cash
The cashless society is headed our way and erasing all remaining semblance of financial privacy. Imagine a world where every transaction can be tracked, controlled and even denied by the government. They want this power under the auspices of fighting crime, but they are already asking banks to search transactions for terms like “MAGA” and Trump. When the digital dollar takes over, there won't be any banks in the way. A fully centralized digital currency, already underway with the FedNow system could make the 4th Amendment basically obsolete. You don't have to issue a subpoena or obtain a warrant through a court for information you already have. The surveillance and control of the digital dollar is something they have greatly coveted for decades. Donald Trump has vowed to stop it, but can he? How much are you willing to bet on that? Your entire networth and your God-given freedom? If you own some gold, you have taken that much of your wealth out of their system and put it directly into your own hands and under your own control.
2. Debt – No Solutions
The national debt has a 92% correlation with the price of gold and both are only going up right now. Keep in mind that Trump started his first term with just under $20 trillion in debt. At the rate Biden is going a hypothetical Trump second term would be hobbled with nearly TWICE that. And Trump was no hawk when it came to adding to the debt. He added nearly $8 trillion to the debt from 2016-2020. Biden has already added over $6 trillion, but because interest rates have gone up so much, servicing the debt has skyrocketed to almost $700 billion a year. The Committee for a Responsible Federal Budget estimates that it will cost $13 trillion just to service the debt over the next decade, and there are no solutions in sight.
Considering that 92% correlation, that means your buying opportunity is NOW before gold prices climb even higher. If you think $2000 an ounce is high today, just wait until it reaches $3200! Don't live with that regret.
3. Global conflict and De-dollarization
The US is involved in several high stakes global conflicts right now and more are on the horizon. The Ukraine-Russia situation really put the dollar in danger in two ways - First, it has been incredibly expensive and we have nothing to show for the billions we flushed into Ukraine. Second, the sanctions against Russia really kicked global de-dollarization into high gear when Russia and her allies had to figure out alternatives after being shut out of the dollar. Now we have the Israel-Palestine conflict heating up, Red Sea shipping disruptions threatening to send shipping costs soaring, and this year we may see China make moves against Taiwan.
All of this instability and conflict is dollar negative. Where will we get the money to fund our involvement in these violent world affairs? It will likely be printed right out of thin air.
4. Commercial Real Estate is collapsing
2024 is looking like the year this highly leveraged sector will face a reckoning and it will be very ugly. Some, like Cantor Fitzgerald CEO Howard Lutnik, expect up to $1 trillion in defaults over the next two years. If you thought the 2008 real estate crash was ugly, hold on to your hats (and get into gold!) That crash saw gold spike from about $650 an ounce in 2007 to $1828 in late 2011. The contagion was the real problem during the Great Recession. Consider the domino effect that could happen for jobs, for city tax revenue and public services, for investment products based on commercial real estate, things like retirement accounts and pension funds, the list goes on.
5. Layoffs are back
The LA Times, eBay, Wayfair, TikTok, Riot Games, Google, Amazon, YouTube, Vroom and others are reducing workforce. There is trouble in the job market and that means trouble for the economy. Watch:
The time to defend your assets and your financial privacy is right now.
The markets are topsy turvy and nothing makes sense. But markets don't stay out of balance like this forever, and when the correction comes, the hesitant and the fence sitters usually get crushed. And the worst thing is they KNEW they should have acted, but they just didn't. All the signs were there screaming at them and pointing the way and for whatever reason, they let another day slip by without doing anything. And then they have no one to blame but themselves when their networth takes a dive.
We are on the precipice, and the dominos are all lined up. It would be great if even small moves in the right direction are made in the next administration, but those are hopes and dreams. World Class investors don't rely on hopes and dreams to secure their future, and neither should you. Investors like Warren Buffett rely on signs and indicators and he is selling dollar-denominated assets.
Don't let another day slip by. Call us today.