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1.The world is undergoing a major economic transition
from deflation to inflation.Sadly, very few retail investors are correctly
positioned to benefit from this exciting change.
2.In the big picture, the transition means that gold
stocks will outperform gold bullion, and bonds will stagnate.
3.Chinese and Indian stock markets could boom.Western
stock markets could also get dragged higher, but investors there have a lot
more risk than Chindia investors.
4.To understand the fundamentals of the transition,
please click here now. I predicted that Janet
Yellen�s first actions as Fed chair would be to begin to transition a
deflationary world to an inflationary one.
5.I said she would do that, ironically, by tapering QE
to zero and raising interest rates, and that�s exactly what she is doing.Now,
the world�s top institutional economists are beginning to adopt the same view
that I had years ago, which is that QE is inflationary for Wall Street, and
deflationary for Main Street.
6.Rising oil prices are already putting pressure on the
yield curve and the ten-year bond.That�s likely to accelerate in 2017.
7.Please click here now. Top economists at JP
Morgan, Merrill Lynch, and other major financial institutions are all turning
negative on bonds, and becoming very positive about commodities.
8.These institutional money managers move truly
gargantuan amounts of liquidity, and the early 2016 rally in gold stocks was
the canary that sang loudly in the �inflation is coming� coal mine.
9.This transition is not going to benefit day
traders.It�s going to benefit Western gold community investors with a long
term horizon, and make them richer than they can possibly imagine.
10.It�s multi-year process, not an overnight event.
11.Please click here now. Western real estate
can initially continue to do well as rates rise.
12.That�s mainly because Chinese markets are opening up
wider, and citizens there are maniacal savers, sitting on about $25 trillion
(USD) in savings.That money will continue to pour into Western real estate
even as rates rise, because inflation will rise faster.
13.Please click here now. Top analysts at
Barron�s believe peak liquidity and peak bond prices are here.
14.The bottom line is that with the exception of China,
governments around the world have done nothing for Main Street while central
banks have provided gargantuan stimulus to financial assets.That�s about to
change, and the change is incredibly inflationary.
15.Please click here now. Double-click to
enlarge.That�s a look at the Indian small caps market, which I cover in my https://gracelandjuniors.com newsletter.
16.That market is up about 65% from the 2016 lows, and
poised to blast out of a massive inverse head and shoulders bottom
pattern.When inflation appears, small caps tend to outperform large caps in a
major way.
17.India could potentially achieve 10% GDP growth very
soon, and 8% seems like a �walk in the park�.As that growth continues
relentlessly, commodities like oil (and especially uranium) are poised to
benefit.
18.Please click here now. Double-click to
enlarge.That�s the daily gold chart.I�ve outlined a bit of a grind for gold
in the next few weeks.
19.From a fundamental perspective, gold needs another
rate hike from Janet to move higher.In late 1979, rate hikes were negative
for gold, but for most of the 1970s, gold went higher alongside rates,
because inflation grew faster than interest rates.
20.In the current situation, interest rate hikes are
incredibly positive for gold, because of the existence of the huge QE �money
ball� that sits at the Fed and other central banks.Rate hikes incentivize
banks to move that money out of the Fed and into the fractional reserve
banking system.
21.Janet is unlikely to hike again until December, so
gold is likely to grind sideways until then.If gold investors look closely at
that gold chart, it�s clear that gold really has made little upside progress
since it became clear in mid-February that Janet was going to delay further
rate hikes.
22.To understand the potential for gold to grind sideways
from a technical perspective, please click here now. Double-click to
enlarge this monthly bars gold chart.Gold must grind sideways now, to form
the right shoulders of a huge inverse head and shoulders bottom pattern.
23.I don�t expect the grind on the right shouldering
process to take anywhere near as long to form as the left side did, which is
good news for all gold price enthusiasts!
24.Please click here now. Double-click to
enlarge this daily bars GDX chart.Gold stocks are also likely to grind
sideways for now, and then begin an enormous rally in 2017.Gold stock
investors should focus on the $22 and $18 price zones for fresh buying.What�s
coming in 2017 is not a �bull market�.It�s the start of a wondrous
bull era!
Thanks!
Cheers
St
Stewart Thomson
Graceland Updates
Note: We are privacy oriented.We accept cheques,
credit card, and if needed, PayPal.
Written between 4am-7am.5-6 issues per week.Emailed at
aprox 9am daily.
https://www.gracelandupdates.com
https://gracelandjuniors.com
www.guswinger.com
Email:
stewart@gracelandupdates.com
stewart@gracelandjuniors.com
stewart@guswinger.com
Stewart Thomson is a retired Merrill Lynch broker.
Stewart writes the Graceland Updates daily between 4am-7am. They are sent out
around 8am-9am. The newsletter is attractively priced and the format is a
unique numbered point form.Giving clarity of each point and saving valuable
reading time.
Risks, Disclaimers, Legal
Stewart Thomson is no longer an investment advisor.
The information provided by Stewart and Graceland Updates is for general
information purposes only. Before taking any action on any investment, it is
imperative that you consult with multiple properly licensed, experienced and
qualified investment advisors and get numerous opinions before taking any
action. Your minimum risk on any investment in the world is: 100% loss of all
your money. You may be taking or preparing to take leveraged positions in
investments and not know it, exposing yourself to unlimited risks. This is
highly concerning if you are an investor in any derivatives products. There
is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion
written off officially. The bottom line:
Are You Prepared?
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