The Hidden Fears In Equities
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
The equity bull market rolls on and makes new highs every day, and the pundits and advisers are trying to convince us this time is different. Is it? The short answer is no; it’s never different. Investors and traders alike are chasing the equity markets around like a dog chases its tail.
There are underlying signs of fear in this market and the story is being told by gold, silver, Bitcoin and bonds. The fear assets are gold, silver and bonds, which have quietly rallied to short-term highs while the equities are making all-time highs. The new arrival to the fear space is Bitcoin, which breaks records daily as those who missed out chase it higher. Fear and greed drive all markets; this time won’t be different.
Buyers have quietly been buying gold and silver while one of the biggest bubbles in history continues to inflate, ignoring record student- and auto-loan debt. Debt today is bigger than the housing bubble of 2008, giving those who understand the markets a great reason to put new money in gold and silver. No one knows when the bubble will pop, but those who are preparing now will be smiling when the music stops and the greedy wonder what destroyed their portfolios again.