Why I’m Sticking With Gold
Why I’m Sticking With Gold by Bill Bonner – Bonner and Partners
OITOU, FRANCE – Our in-house expert left us this morning; we have no update on his cryptocurrency speculations.
He and his family boarded the 6:22 train to Paris, en route back to Florida.
About a half hour after we had taken them to the station, the phone rang:
“Uh… Dad… the train has stopped. They’re saying something about a cow on the tracks.”
Suddenly, all his careful rehearsals were upstaged. The plot had changed.
The tracks had been laid, sturdy and straight. The locomotive – a new one – was strong and dependable. The conductor knew his job. The passengers were in their places.
All was set for a trouble-free run on the Limoges-Poitiers line. But the cow miscued. As it turned out, the train hit the poor vache… the connection was missed, and the whole script had to be rewritten.
Jiggered and Jived
Things do go wrong from time to time.
The actors get on a clear stage, expecting a smooth reading of Macbeth. And then… without warning… some clowns rush the proscenium and you have A Night at the Opera.
The plot looked like it might be changing in the stock market yesterday, too.
Voices shouting out their buy and sell orders had a new tone. Doubt. Not fear. Not panic. Just doubt.
The Dow fell 203 points, a bit less than 1%.
“Equity rout deepens,” reports Bloomberg, either exaggerating or anticipating.
According to no less an authority than the president of the United States of America – and we can’t think of less of an authority – the U.S. financial picture has never been brighter.
Stocks are still near record highs. Unemployment is below 5%. Inflation is below 2%.
As for stocks, they have never, ever been higher, according to stock market analyst John Hussman of Hussman Funds.
Corporate profits can be jiggered and jived by accountants. But not sales, says Hussman. And right now, the price-to-sales (P/S) ratio for the S&P 500 is telling us that stock prices are more expensive than they were at their pre-cash peaks in 1929, 1999, and 2007.