Usually, bullish Bloomberg sounds more like Gloomberg, reporting how strategists from nearly all the top Wall Street banks are warning against investing in over-valued stocks with little cash reserves. Only one problem. That describes virtually every stock. So, what’s an investor to do? Helping answer that question is our guest, Jack Hanney, a senior market analyst.
Q&A:
- Jack, sometimes one high profile strategist or maybe a lone Wall Street bank or two might issue a caution on an overly heated market, but what’s going on with virtually all the top banks issuing strong warnings?
Answer: Morgan Stanley, Citigroup Inc. and Bank of America and others have realized what others including have been warning about for quite some time now. The market is overvalued—on steroids is more like it. Binky Chadha, equity strategist at Deutsche Bank equity strategist Binky Chadha just said, and I quote, “Equity valuations at the market level are historically extreme on almost any metric.” And Binky baby means by virtually any metric. When so many international banking giants speak, we may want to listen.
- What area reasons for surging values in the market?
Answer: Many investors don’t’ know where else to go. They’ve listened to the bulls preaching stocks as if they are religion, like they can never keep ascending to the heavens. Unfortunately, there’s another destination—and it can be virtually straight down, to sustainable, rational levels. - Does the strength of the dollar have anything to do with the surge in the stock market?
Answer: Absolutely. The dollar keeps weakening so it’s diluted buying power naturally causes stock prices to rise when they are actually not rising per se. They are a reflection of a declining dollar. - What about the “I” word? Are we getting an accurate picture of commodities and every day necessities such as gas and housing?
Answer: OK, I’ll say it: INFLATION. There, now that the spotlight is on the elephant in the room, I can tell you that the fix is in. The government measures of inflation, totally ignore key HUGE categories, causing a false feeling of comfort, and grossly understating inflation. Look around you. Gas prices have doubled, but do any so-called experts dare say inflation is at a rate of 100%? Of course not. And some building construction materials have rising more than 400%. Oops, those commodities apparently don’t count, as it housing was of no concern to the great unwashed masses. Clearly, real world inflation is far greater than what is being reported.
- So, what’s an investor to do to get rid of weak dollars—other than putting them into a over-inflated stock market?
Answer: Gold, silver, or other commodities that represent real money. Something that has proved to be a safe haven over the centuries. Not bitcoin or fiat dollars or stock certificates that are often just ink printed on hugely over-valued paper.
- Where can we get more information on tangible investments?
Answer: Patriot Gold Group dot com. https://www.patriotgoldgroup.com
Jack Hanney is a senior investment analyst and CEO and senior partner at Patriot Gold Group.
CONTACT: Jerry McGlothlin 919-437-0001 jerry@specialguests.com or Celinda Hawkins at cemison@gmaiil.com.
