6/23 Market Update – Why the Libra will succeed; Higher house prices coming; Basing equities ready to move; Gold has firepower; Cryptos exploded as we predicted last week with more to come.

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-The major stock averages have been basing for 18 months with a bullish tilt.  Unless we get world war, the next breakout will be higher. S&P 3,000 is a done deal with a 28,500 year-end Dow target. How about Dow 30k in the intermediate term?

-I certainly do not support open borders, as that is a defacto loss of national sovereignty. But I would be misguided not to plan for this new world order plan. Despite the overwhelmingly bearish proclamations to the contrary, I predict much higher housing costs and home prices in the intermediate future. Lower mortgage rates will greatly enhance affordability at each price point, while the uncontrolled immigration is laying the working class lifestyle to waste. The massive deficit spending required to support these people will continue to levitate asset prices higher.
-The U.S. population has grown by 30 million since the 2008 recession, more than the entire population of Australia. I see a Soylent Green scenario where overcrowding will be of epic proportions. The recent immigrants come from 3rd world nations, are not encouraged to learn English, and have no problem remaining lower class. Working class housing will benefit more than any other segment.
-The least risky way to profit in cryptos is to buy the alt-currency-equivalents after a move up in BTC. Bitcoin always leads the way (e.g. eth, dash, xmr, zec, bch, ltc, xrp, xlm, bsv, etc.)
-Bond yields continue to fall as predicted; laying the strong groundwork for my investment theses. There is 13 trillion in negative-yielding global debt and that is just a taste of what’s to come.

 

-Despite gold’s explosive take out of 1,362, there is still some firepower left as the COT report is not as stretched as in the Summer 2016. I am a buyer of dips.


-UST 10-year briefly fell below 2.00% as bonds prices have exploded higher. More to come eventually.
-Facebook Libra is the future of money and will work well within the central bank structure. Governments and central banks see asset-backed cryptos and private money as another way for the average person to buy sovereign debt (though the currency user won’t know this). There will be no runs on the banks as the central banks could easily support any sanctioned coins.
-Libra privacy will never be a problem as Facebook’s current privacy woes have done little to impede its explosive user growth. Most users will freely embrace Libra like they embrace PayPal and debit cards.
For China’s Yuan, the Path Toward 7 Per Dollar Is Now Wide Open