HECTIC
What a week it has been! Where does one even start?
Let’s start with a headline we didn’t see:
Historic Losses Occur as Wall Street Finally Realizes the Threat That the Coronavirus Poses to the Global Economy
Having not watched Financial News on CNBC since about 2009, switching it on last week certainly bought back memories of 2008.
Last Monday, they trotted out Warren Buffet, for a little 3 hour stint. The message (of course) don’t sell anything. A sure tell we were going to be in for a tough week.
Tuesday, US White House Economic “Adviser”, Larry Kudlow told investors, through CNBC, to “Buy the Dip”.
Wednesday, Dip buyers get battered and US Fed chief rolls out the word…….drum roll……CONTAINED. Like, actually, what (TF) is “contained” at this stage? Cripes, almost threw up the garlic, ginger and triple C green tea.
Thursday, The Dow Jones leads global stock markets down 4% and gold stocks USD1645.
Then Friday, in the US late afternoon, stocks are sinking fast, again, until (on no news whatsoeveva) a late afternoon buying blitz from something almost took US indices green AND, gold smashed to 1585.
Monday (today), in a signal of what’s now expected from Central Banks, the BOJ (Bank of Japan) promises to print to the moon, Gold back up over USD1600, stock markets stabilize!!!
But, the bond market still needs anti-freeze!
We’re going to find out how much money printing it takes to create supply chains, increase falling demand for everything and making the unhealthy healthy.
As we’ve said before many times, the most unhealthy part of this S-show is the Central Bank induced financial system itself.
No need for repeats, you can read our last two commentaries on Wuflu economic “knock-ons” here, and here.
Generally speaking this (below) is a good example of what is happening. Not much at all.
Needless to say, the Chinese economy has ground to a halt.
We really couldn’t go on any further without sharing this little tidbit on the “so called flu”, if you hadn’t already read it!! From 1981.
“In around 2020, a severe pneumonia-like illness will spread throughout the globe, attacking the lungs and the bronchial tubes and resisting all known treatments. Almost more baffling than the illness itself will be the fact that it will suddenly vanish as quickly as it arrived, attack again ten years later, and then
disappear completely…
…It was around then that a Chinese scientist named Li Chen defected to the United States, carrying a diskette record of China’s most important and dangerous new biological weapon in a decade.
They call the stuff ‘Wuhan-400’ because it was developed at their RDNA labs outside the city of Wuhan, and it was the four-hundredth viable strain of man-made micro-organisms created at that research center.
Wuhan-400 is a perfect weapon. It afflicts only human beings. No other living creature can carry it…”
– Dean Koontz, Eyes of Darkness, 1981
Not much commentary needed with the above, so how about, WOW, and move on.
In so many ways, this ain’t no ordinary flu and there is much to learn.
There are, however, reports of clinical trials being undertaken for a vaccine by many countries, including advanced research involving some kind of anti-viral drug, which is close finishing human trials in China.
The best report we’ve read indicated a six month minimum but the overall consensus amongst most medical analysis we could find is, “more than twelve months” before a vaccine or anti viral solution
It’s one thing to believe this will pass in time, as we do.
It’s another to understand the absolute havoc it’s going to reap on our societies over the next few months.
The consequences, both financially and socially are going to be profound.
Luck will favour the prepared, go long Vit C powder and garlic!!
On the matter of gold, it was very interesting to observe the misbehaviour of the miners last Friday despite gold still being $2450 AUD an ounce.
Miners are unloved and absurdly under owned.
As well as Marc Faber’s weekend observations of a potential for everything to sell off as things intensify, he notes nothing will deter money printing on a massive, never seen before scale, as it already has been for the last 6 months!!!
“Because gold is honest money it is disliked by dishonest men.” – Ron Paul
“Gold is money. Everything else is credit.”– J.P. Morgan
“Gold was a gift to Jesus. If it’s good enough for Jesus, it’s good enough for me!” — Mr. T
All portfolio inquiries welcome.
