You know what one of my strategies is to avoid being squashed, right?
Linked Accounts.
A rap this morning in response to a reader inquiry from a recent radio appearance:
On C2C George spoke briefly about the “bail in” when the market drops and said he would be moving into “treasuries” ? Bonds? I need more info.
As I explain on Coast to Coast AM Monday night, we come to this interesting “fork in the future” two weeks from today.
That’s when the Federal Reserve decision on interest rates will be made. That will likely trigger one of two scenarios. Under one, rates go up (as the Fed did in 1928) and it triggers a massive 2-year bubble that ends in the Crash of All Time.
Under the other, we get the same result. It’s just we don’t get the luxury of two more years of preparing for it. We crash now.
Futures were down 350 when I looked in the wee hours. But since our Trading Model has been cash or short since July 3 this is really “who cares?” territory.
I’d like to thank George Noory for inviting me to spend some time on Coast to Coast AM overnight. As you might expect, just a week on the sleepy side at the moment.
I did want to answer a reader question that I didn’t have time to get into. That was on the outlook for gold.
To get a sense of how things are flowing, you can look at a Yahoo Finance chart of GLD over here.
When I look at the chart what I think I see is an Elliot three waves up, a fourth and then a failed fifth.
From there, gold fell somewhat dramatically and it has a very good chance of returning to some of its former luster if the Fed actually raises rates because an increase in gold seems to come coming along with declines in markets.
This really gets to the heart of what I didn’t have time to get into in too much depth with George last night, but let me explain how I think understand of economics is directly tied to a change in the “Evolution of Business Models.”
It’s really an economic concept of “owning a franchise.”
The concept goes something like this:
In sports, a franchise is basically “rights” to performance of a professional sport in a market area,” the term “franchise” is extremely extensible.
The term “franchise” is what we call a BUSINESS MODEL and it is being widely adopted.
Outside of sports, look at car dealers.