We believe the stock market has begun its final downtrend of 2022. Over the next few weeks, we anticipate much lower prices in the major indexes and cryptocurrencies. However, once this final sell-off completes, a large rally should unfold into the end of this year. The ‘real recession’ will then begin from early 2023 into 2025. Commodities – namely gold, silver, uranium, coal, wheat, and oil – will outperform equities and cryptocurrencies by a significant margin during the coming recessionary period. In addition to accumulating ‘paper’ assets like commodities ETF’s, we believe acquiring physical gold and silver bullion is equally worthwhile. Over the next few years, we favor gold reaching prices north of $3,000 and silver prices north of $100. Both paper and physical commodities represent the greatest hedge to not only protect one’s wealth, but even expand it during a time of global contraction. At the end of this year, we plan to liquidate all equities in favor of these commodities.
Last Week’s Economic Events:
Building Permits: Beat
Core Retail Sales (MoM): Beat
Retail Sales: (MoM): Miss
FOMC Meeting Minutes: Rate hikes to continue on schedule
Upcoming Economic Events:
Tuesday: New Home Sales
Wednesday: Core Durable Goods Orders, Pending Home Sales
Thursday – Saturday: Jackson Hole Symposium
