Disorder Will Come—as Confucius Warned
The comments below are an edited and abridged synopsis of an article by Egon von Greyerz
Superior people can exist at many different levels in society, not necessarily linked to money or investments. There will be many without money who are prepared at an intellectual or psychological level. These folks are probably the happiest since, sadly, many wealthy people worry about their money all the time rather than enjoy it.
In this piece, von Greyerz talks primarily about preparedness in relation to one’s wealth.
Up for discussion: Focus on wealth preservation; inflation is coming; bond yields do not reflect the massive risk; US government debt to be $50 trillion in 2025; hyperinflation is a currency event; few are prepared for disorder, ruin or hyperinflation; epic overvaluation of stocks; sell stocks and buy gold—a seminal decision.
We know that stocks are massively overbought on every measure. To catch the last few points of the rise is an extremely dangerous exercise that could lead to ruin.
Now is the time to take profits in stocks and protect your assets from total annihilation.
Gold is as cheap in relation to money supply as it was in 1970 at $35, and as cheap as in 2000 when gold was $290. The short-term correction in gold is now finishing, and the next move up will be the strongest for a few years.
The rise in gold and fall in stocks will mean that the Dow will fall another 99% from here to reach the long-term trend line, so getting out of stocks and holding physical gold will not only be a seminal decision but it will also heed 2,500 years of wisdom.
Postscript: Since this article was written, a small hedge fund has lost $30 billion due to ludicrous risk taking in the derivatives market. Banks like Credit Suisse will also lose billions. Von Greyerz has consistently warned readers about these dangers. The whole derivative $1.5 quadrillion timebomb is at risk.