Nick Hodge,
Publisher
Aug. 23, 2021
Indecisiveness continued in the markets last week, but angst was starting to build.
That angst came from rising Covid cases that the market thinks might slow the economy enough to stagnate it.
When investors get angsty they want liquidity — good ol’ cash.
You can see that in the Fed’s overnight repo market ticking over $1 trillion multiple times recently, hitting a record while I was typing this.
You can see it in the “strengthening” dollar. Strengthening in quotes because it’s only been a few months. And when the dollar tried to break out earlier this year, it failed right at 94 on the DXY. (I covered this for premium members as it happened, and we made money by not buying the strong dollar eype back in March/April.)
We still have to see if it can break out or not.
You can see angst in stocks, with the S&P having its monthly fit this week.
What’s different this time is everything above and everything I’ve been saying the past few weeks about this rotation.
What’s also different is the yield curve is flattening with shorter term 2-year bond yields rising against a falling 10-year bond yield. The last time the 10-year bond yield broke down was March 2020.
Anybody remember what happened that month?
You see why investors got the angst?
One of the ways to reduce angst and volatility in your portfolio is to own precious metals.
It’s no secret I’m an advocate of always having some precious metal in your portfolio.
But how you do that should vary based on market conditions.
There are vast differences between owning physical metal, trusts or funds, and gold and silver stock shares.
I get into the silver mining stock side of things in this brand new video.
Call it like you see it,
Nick Hodge
Publisher, Resource Stock Digest
Nick Hodge is the co-owner and publisher of Resource Stock Digest. He's also the founder and editor of Foundational Profits, Family Office Advantage, and Hodge Family Office . He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.
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