Asset bubbles are bursting every year and I take advantage of them
I wanted to put out an article to help illustrate that bubbles form and burst all the time. Our task is to try to identify the bubbles as they form and collapse.
The problem with the alt-financial media analysts (either through compromise, conflict-of-interest, or ignorance) is that they have their readers looking for bubbles in all the wrong places. If we care to look, there are bubbles bursting every year.
Of course, the alt-financial media got it wrong all year long, but they won’t admit that. They have us trained to look at the ones that may take several years to form, and by the time asset bubbles finally top out, if ever, they have left the frustrated reader in a much poorer state. This, of course, is very useful to the globalists as they let the poorly educated and compromised alt-financial experts do the heavy lifting for the NWO. A broke opposition poses no threat to the NWO.
The alt-financial media have us looking at the wrong asset classes
One of the fatal cognitive biases that plague the alt-financial media is their hard-wired hatred of the US dollar. As a consequence of this bias these experts have flipped-flopped their advice and warnings to completely counter what would have turned out to be the best course of action. As a rule of thumb, whatever the alt-financial media proclaim I generally recommend the opposite.
Recall earlier in the decade about how gold was to replace the US dollar and that the Chinese and Russians were about to embark on a campaign to overturn the US dollar in international finance. How has that worked out for those long gold and silver? Remember how the alt-financial media were warning their readers to buy Chinese assets and go long the yuan? It was supposed to be an investment no brainer. How has that worked out? Imagine going long Chinese stocks at the expense of US equities. Keep in mind that was common alt-financial wisdom several years ago.
I have always recommended gold holdings over silver. Gold is a true monetary metal with little industrial off-take. Gold is much less volatile in price than silver and its market is much larger than its ugly twin. But that hasn’t stopped the silver shilling over the past decade as the mark ups on silver are much larger than gold.
The Chinese yuan has been having a difficult time all decade. The alt-financial media doesn’t understand that a centrally-managed economy will always have a weak currency. The poor reader gets suckered over and over.
Alt-financial media misses the real bubbles and focuses on the mirages
The latest is the supposed bursting Australian real estate bubble. Indeed, there may be some sizable price drops in Sydney and Melbourne, but they are only coming after huge gains over the past several years. What do we expect if mortgage rates rise? But what if we listened to those preaching collapse all decade? We would have missed out on a once in-a-generation opportunity.
How has that collapse in US real estate turned out?
If we listened to those in the alt-financial media who were pounding the table on real estate collapse we would have been on the outside looking in as prices continued to escalate. Eventually, the worm turns and prices do fall. But if we soundly analyze our investments based on comparable rent ratios, cap rates, and IRRs we will become wealthier over the intermediate- to long-term. Real estate is all about money and time. I have never met any landlord who owned a property for at least five years and regretted his purchase decision.
The alt-financial media will have you looking at the bubble areas of San Francisco, Miami, and Manhattan. They will scare your pants off and through learned helplessness they keep us from making any long-term investment decisions. Of course, there are always areas with rampant speculation, so we are to stay away from them. Buy in cheap areas. There are plenty of inexpensive markets.
The alt-financial media continue to swing and miss
Anyone shorting based on the above chart would have been insolvent years ago. The US dollar has been well-supported over the past decade and has helped to raise the prices of dollar-based assets. Eventually, a stopped clock is right and and when we get a meaningful correction, the alt-financial media will proclaim that they were right. Of course, they lost their investment money waiting for that moment, but they won’t remind you of that oversight.
My concern is that if the dollar remains firm or strengthens we could see the Dow Jones Industrial Average hit 40k. I know that sounds difficult to believe, but if the dollar is to die it will be from strength, not weakness. In the mean time, stocks could do well as we count down to collapse. The alt-financial media may be right in predicting the dollar’s demise, but they will lose everything they own in the process.
Truth, insight, and knowledge are precious and rare commodities. Unfortunately, we almost never see them in the alt-financial media.