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• Interest rates are going up with another 75 basis points hike today and another one scheduled for November. The market appears confused as it fluctuates between being up a bit to down a bit. The stock market has become a casino that makes bets of what the US Central bank • Below is a small glimpse of what is happening across the globe, and it's only just begun. If you still own stocks and are being told the market is coming back, ask the logical question, “How?” • We all should own some precious metals and the time is ripe to add it to one’s portfolio. Not only do you provide yourself with some much-needed diversification away from stocks and bonds but the potential for a solid return is clear. • *Claims for unemployment benefits have reached an all-time high of over 38 million - the unemployment rate is over 25% (out of 160 million workers, nearly 40 million are unemployed). Without income, consumer demand drops dramatically, and the economy will go into free fall. This is just the US...* • Use any rally to sell or just take your lumps now buy some precious metals and wait out the storm.
WE ARE ABOUT TO EXPERIENCE THE GREATEST TRANSFER OF WEALTH IN THE HISTORY OF MANKIND.
FOR THOSE THAT ARE PREPARED AND TOOK ACTION TO PROTECT THEMSELVES THIS IS THE OPPORTUNITY TO CREATE GENERATIONAL WEALTH.
DO YOU STILL OWN STOCKS?
Below is a small glimpse of what us happening across the globe, and it's only just begun. If you still own stocks and are being told the market is coming back, ask the logical question, “How?”
Stocks are about to tumble for many companies and corporations that once looked invincible.
Sept 19, 2022, Record bankruptcy in the USA*.
1.Victoria's Secret filed for bankruptcy.
2. Zara closed 1,200 stores.
3. La Chapelle withdrew 4391 stores.
4. Chanel ceased production.
5. Hermes stops delivering.
6. Patek Philippe stops production.
7. Rolex stops production.
8. The world's luxury industry has collapsed.
9. Nike has a total of $23 billion to prepare for the second phase of layoffs.
10. Gold's Gym has filed for bankruptcy.
11. The founder of Airbnb said that 12 years of work was destroyed in 6 weeks due to the pandemic.
12. Starbucks also announced it would permanently close its 400 stores.
13. WeWork is not doing well either.
*Nissan Motor Co. may close in the U.S.*.
1. Largest car rental company (Hertz) filed for bankruptcy - it also includes Thrifty and Dollar.
2. Largest trucking company (Comcar) filed for bankruptcy - they have 4000 trucks.
3. Oldest retail company (JC Penny) filed for bankruptcy - it is being acquired by Amazon for a few cents.
4. Wealthiest investor in the world (Warren Buffet) lost $50 billion in the last 2 months.
5. Largest investment company in the world (BlackRock) signals disaster for the world economy - it manages over 7 trillion dollars.
6. The largest shopping mall in America (Mall of America) has stopped its mortgage payments.
7. The most prestigious airline in the world (Emirates) lays off 30% of its employees.
8. U.S. Treasury prints trillions to try to keep the economy alive.
9. Estimated number of retail stores that closed since 2020- 12,000 to 15,000.
*The following major retailers have announced their closures:*
- J. Crew
- Gap
- Victoria's Secret
- Bath & Body Works
- Forever 21
- Sears
- Walgreens
- GameStop
- Pier 1 Imports
- Nordstrom
- Papyrus
- Chico's
- Destination Maternity
- Modell's
- A.C. Moore
- Macy's
- Bose
- Art Van Furniture
- Olympia Sport
- K-Market
- Specialty Cafe & Bakery
and many many more
*Claims for unemployment benefits have reached an all-time high of over 38 million - the unemployment rate is over 25% (out of 160 million workers, nearly 40 million are unemployed). Without income, consumer demand drops dramatically, and the economy will go into free fall. This is just the US...*
Below is an update of the comparison chart showing 2008 in yellow and today.
GOLD and SILVER, THE PAST AND THE FUTURE
We all should own some precious metals and the time is ripe to add it to one’s portfolio. Not only do you provide yourself with some much-needed diversification away from stocks and bonds but the potential for a solid return is clear.
Looking at history as a guide and of course, the return of propaganda from the mainstream media, this is an excellent time to joint the wealthiest of wealthy along with the world’s bankers and add precious metals to your portfolio.
Robert Kiyosaki, author of Rich Dad, Poor Dad, had this tweet Sept 20, 2022
@therealkiyosaki
END is HERE. Called Jerry Williams my trusted gold and silver dealer. He said “I can’t get gold or silver coins. The mint will not sell me anymore.” To me this means the end of FAKE $ is here. As stated in earlier tweet silver going to $100 to $500. Get some. Protect your self.
And nothing screams BUY like a mainstream media front page headline. Yesterday the Wall Street Journal dissed the yellow metal. Consider this to be a strong buy signal.
And check out May 1999 New York Times article. When they printed this article Gold was down like it is today and the stock market was rocking. In May of 1999, Gold was at $276/oz and the S&P500 was at 1302. Four years later Gold had more than doubled to $574/oz while the S&P500 stock market index was down 30%.
Stretch it out to twelve years and Gold was at $1,533/oz, a 455% increase while the stock market posted a 12-year return of ZERO.
Gold and silver are on sale. The banks and the wealthy own a lot of bullion.
This time we live in is very similar to 1999. Most asset classes overpriced and under intense pressure with rising interest rates and a full-blown global recession.
BULLION IS A BUY!
BUY LOW and PROTECT YOUR WEALTH
INTEREST RATES
Interest rates are going up with another 75 basis points hike today and another one scheduled for November. The market appears confused as it fluctuates between being up a bit to down a bit.
The stock market has become a casino that makes bets of what the US Central bank says and does with interest rates as opposed to focusing on basic fundamentals like valuations and earning of the companies that trade on the market.
And the US Central Bank, along with all central banks are trapped due to decades of increased printing money to prop up the global stock markets. Add on the global debt that is well over $300Trillion and you have a disaster waiting to happen.
Back to being trapped. If they raise rates, they crush the stock market and destroy the working class and seniors who are struggling at it is with double digit inflation. Mortgage and car payments are being missed as people scrape by to pay for food and fuel. Discretionary spending has become a luxury for many and the number of retail stores going broke is evidence and just the tip of the iceberg.
But if they don’t raise rates, they end up with hyper-inflation such as Argentina experienced in 2019 of 54%. The result was a currency that crashed, a current inflation rate today of roughly 100%, yes 100% and current prime interest rates of 75%. Yes, borrowing for the least risky borrowers is 75%! So, what do you think they will do? Sacrifice main street or route the currency and sacrifice everyone?
Thus, do not expect the interest rate hikes to stop anytime soon, and if they do, watch for an epic collapse of the US Dollar (which would drag the Cdn dollar down with it).
And then there are those pesky basic fundamentals … Stuff like Valuation and Earnings usually are important and in most bear markets investors have experienced over the last 50 years were earnings bear markets. This is, so far, a rates/inflation driven bear market. That’s about to change as evident in the long list of hurting and bankrupt companies I started this blog with. First off, the valuations are too high with the S&P500 “PE” trading above 22 when historical average is 14.
Valuation is the P part of that equation. P is Price of a stock.
What is being exposed is what many have been showing the past few months is that the E part of the equation is falling apart. E is for earnings.
Thus, when you have a high P and a dropping E something has to give and that will be the price of stocks.
The safest place to be right now is in cash, money market and treasury bills along with precious metals. Both stocks and bonds carry the most significant risk I have ever seen in my 40-year career in finance.
Here is my advice to my clients…
If you are still holding stocks, you are exposing yourself to what I would call “hopium.” Any logic given to stay invested or, God forbid invest more is likely based on speculation and not the basic fundamentals which are current POSITIVE FUNDEMNTALS are non-existent. To buy just because the market is down like trying to catch a falling knife.
Use any rally to sell or just take your take lumps now buy some precious metals and wait out the storm.
WE ARE ABOUT TO EXPERIENCE THE GREATEST TRANSFER OF WEALTH IN THE HISTORY OF MANKIND.
FOR THOSE THAT ARE PREPARED AND TOOK ACTION TO PROTECT THEMSELVES THIS IS THE OPPORTUNITY TO CREATE GENERATIONAL WEALTH.
WE WISH THE BEST FOR THOSE THAT IGNORE THE BLATANT WARNING SIGNS.
OUR MISSION
Preservation Capital was created to provide a unique but sound financial foundation through diversification and education while managing your wealth and its longevity.
Preservation Capital is to save hundreds, if not thousands of individuals and families from the financial ruin that happened to so many of the middle class in the 89% drop in the stock market in the great crash of 1929.
Yours in Faith, Family and Finance,
Daryl
