FED, Esser, United States discussed on The Pomp Podcast

The Pomp Podcast
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Automatic TRANSCRIPT

That gold is not already a lot higher than eighteen hundred is because most people still believe the fed for whatever reason the feds still has a lot of credibility and so do other central banks and so when the fed says inflation is transitory. They accept that when the fed says. We have the tools that we will use them to make. Sure it's transitory. Even if in the event that it's not the markets believe the fed so the market is not looking for insurance is not looking for inflation protection. The market is just looking for risk. The market is just buying whatever's going up. Everybody is optimistic. They think the party will never end. And so they don't really see the reason to hold something stable a like gold Something that's regarded as a safe haven or as an insurance policy They want to gamble. They just want to keep on buying stuff. That's hot and and that includes a lot of different types of stocks lobbies momentum stocks or meam stocks these assets and. it includes. You know when you guys talk about. You know cryptocurrencies digital assets. Bitcoin ether or These right that's what people what they want all the stuff that's going up and they don't even realize that the reason is going up is because of all the inflation that the fed is creating and if it ever actually tried to fight that inflation all that stuff with come crashing down so but they haven't connected those dots yet. For whatever reason. Is there a piece of you that thinks okay. Let's say that. The fed is inflating asset prices. Which i tend to agree right there. Basically devalue the currency esser prices up and rather than fight the fed and say. Hey they're going to change their mind. They're gonna do something different or smarter than the fed. They're going to inflate asset prices. I want to buy the assets that are gonna go up. And so just go invest in the market rather than wait for them to make some you know miscalculation or or Kind of rip the band aid off. As you said like do you think there's validity in that argument of just. Don't fight the fed and just go buy the assets that they're gonna pump up embrace. Yeah i mean. That's what. I'm doing myself but i am buying assets that i think represent better long-term values not these highly speculative assets that i think no matter what are eventually going to collapse right. I mean whether the fed Prick the bubble with rate hikes or whether the bubbles just deflate you know on their own. That is what happens to bubbles. I mean they never just continue indefinitely. So yeah. I don't want to own cash so my personal portfolio is long equities own a lot of stocks all around the world good quality companies that i think are trading at low valuations that have high dividend deals that are in sectors that i think are undervalued there in countries that i think are more stable And have it were. The governments are not going to be under as much pressure to debase. The currency to sustain budget deficits or or trade deficits. I do have a lot of focus on resources natural resources commodities not just gold but all sorts of industrial commodities energy agriculture i have emerging market exposure because i think the emerging markets will outperform the developed markets in an era of higher inflation in dollar devaluation physical gold and silver. So i i'm fully out of the us dollar. And i understand why other people would have an aversion to hold dollars..

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