Talking Points From This Episode- Retirement portfolios and return risk.- Political ineptness and investor complacency.- Alternatives to the dollar.- Opportunities with uranium and energy requirements.
Time Stamp References:0:00 - Introduction0:37 - Bubbles & Risk3:45 - Algo Trading4:47 - China Influence6:36 - Cash Positioning10:00 - Inflation & Rates13:49 - Debt & MMT Theory16:06 - Political Will?18:43 - Short Positioning?22:20 - Alt. Currencies23:58 - Gold Correction?27:25 - Choosing Miners30:28 - Uranium33:10 - Public Opinion34:47 - Bitcoin40:09 - Wrap Up
Tom welcomes returning guest Peter Grandich to the show. Peter discusses how the markets have changed over his career and are now high-tech casinos.
To subscribe to our newsletter and get notified of new shows, please visit http://palisadesradio.ca
The Fed has destroyed the fixed income market, pushing people to take riskier plays on their retirement investments. He expects stagflation as inflation increases and the economy underperforms. The Fed is trapped since it can't raise interest rates because of excessive debt. A few percentage point increase would equal half of the government's income.
Peter believes that the political system no longer has the political will or ability to address these problems. Politics has become an almost impossible place to accomplish anything.
The largest holder of US government debt was Japan, but they sold most of their treasuries last year. In addition, we continue to see countries like Russia and China move further away from the dollar and into gold. So it seems we are rapidly reaching the end of the road for the dollar.
Complacency today is off the scale, as half of all financial advisors today have never experienced a bad market. Most investors are operating on "hope" that markets will continue higher. Now maybe the time to err on the side of caution.
Gold has massive potential, but you won't see Wall Street say anything favorable about it. So if you're looking for assets that are under-owned and unappreciated, look towards gold and silver.
Peter explains why he is bullish on uranium-based solely based on the supply-demand fundamentals. In addition, there are only a handful of uranium companies. Most of the utilities have yet to renew their long-term contracts and will likely end up doing so at much higher prices. Nuclear has to be included if we are going to meet future base demand for energy. Solar and wind are not going to solve these problems by themselves.
Peter gives us his thoughts on bitcoin, including some technological risks and why he is concerned about the excessive enthusiasm in that market. Also, there is a risk of further regulatory and political pressure being applied.
Peter Grandich's work can be found at Peter Grandich and Company and Pete Speaks.