This Gold Bubble Has A Disturbing Secret Message for You

Today, I’m doing something a bit unusual.

Instead of our usual LAMPP update, I’d like to take a different tack…and show you a historical picture lesson that should scare the stuffing out of you.

Recently I’ve been thinking about the similarities between the current stock market environment and a few of the bubbles that I have experienced in a lifetime of following markets. While those similarities are scary, they prove nothing. Just because 2 different periods in different markets look alike doesn’t mean that their denouements will be the same. 

By the same token, to ignore the similarities and the warnings they represent would be foolhardy. So today I am showing you the pictures of several modern bubbles, starting with a recent and disturbing one in gold.

Maybe that’s not enough to scare the bejabbers out of us, nor perhaps should it be, because there may still be time to watch and take action deliberately. If you have been following my recommendation to gradually liquidate your stock holdings and raise cash over the past four months, and the current 3 months if you started late, then you’re in good shape to ride out the storm that I expect. 

But the message in these charts is that maybe there isn’t as much time as we think.

Here’s the gold bubble – and several others – that tell you what you need to know

The Fed Just Stabbed Its “Silent Partners” In The Back – and You’re Next

I’ve gone into detail elsewhere about the Fed’s “silent partners,” the Primary Dealers – big banks that have special status to act as intermediaries in the market where the US Government sells debt to raise funding for government activities. This is the Government Securities market, commonly known as the Treasury market.

The Primary Dealers are the conduits through which the Fed executes monetary policy. They’re very loyal friends to the Fed and the U.S. Treasury, and they talk to them all day long.

Well, no good deed goes unpunished…

Right now, the Primary Dealers are in big trouble (thanks to a dastardly move on the part of the Fed).

And that means you (specifically, your portfolio) are in trouble too.

Here’s what’s happening, and how to protect yourself.