Peter Boockvar – Gold Will Be The Last Man Standing

from King World News

On the heels of the historic Brexit “Leave” vote and the massive turmoil that ensued in global markets on Friday, today Peter Boockvar says gold will be the last man standing.

Here is a small portion of what Peter Boockvar wrote today in the aftermath of the historic vote by Great Britain to leave the EU:  I’m sure you’ve read a lot over the weekend on the aftermath of the UK vote. Many have their predictions of what happens from here both in Europe and ripple effects throughout the rest of the world. Many have their fears about the fate of the EU and euro zone, the drawn out nature of the UK negotiations as the UK recession odds go higher, the Chinese quietly continuing their devaluation, etc…

As there is no blueprint for what we are currently experiencing, I have to say how can any of us have any real conviction on any particular outcome from here. We can surely throw out all the different possibilities but only time will tell us which paths we go down. That said, we will always have some form of a reversion to the mean in both economic and market cycles and we are at the end I believe of a cycle that began in 2009. As is typically the case, market moves usually go further than the economic (or earnings) cycle both up and down. Valuations expand faster than earnings growth on the upside and do so also on the downside. It is why I like the market cap to GDP (or GNI or GNP) ratio as it measures the separation between the two.

Valuations never matter until they do and now is when they do and that ratio is important to be watching again. For US stocks, the gap is off the recent highs but is still at the 2nd most widest in the post WWII time frame.  Here is a good look at some charts from Advisor Perspectives, http://www.advisorperspectives.com/dshort/updates/Market-Cap-to-GDP.

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The Daily Coin

Rory Hall, The Daily Coin and Gospel News Network. Beginning in 1987 Rory has written over 1,400 articles and produced more than 500 videos on topics ranging from the precious metals market, economic and monetary policies, preparedness as well as geopolitical events. His articles have been published by Zerohedge, SHTFPlan, Sprott Money, GoldSilver, Gold Seek, SGTReport, and a great many more. Rory was a producer and daily contributor at SGTReport between 2012 and 2014. He has interviewed experts such as Dr. Paul Craig Roberts, Dr. Marc Faber, Eric Sprott, Dr. Warren Coates and Peter Schiff, to name but a few. Don't forget to visit The Daily Coin and Gospel News Network to enjoy some of the best economic, precious metals, geopolitical and preparedness news from around the world.