My Current View of the Markets

Money Feb 25, 2021

This is not financial advice and just me publishing my thoughts about the current state of the markets around the globe. Also, please note that this article will include some of my general views in macroeconomics. Please, still do your own research and be advised that I'm not good at organizing my thoughts especially with things like this, thanks to Mercury being in Pisces when I was born.

I do believe that we're going to see the biggest economic crash the modern world has ever seen that will put The Great Depression of the 1930s in shame, which maybe already starting at Main Street. We've had no real downturns in more than a decade due to several factors, like what central banks has put in place, but detroys the very thing that makes markets real and outside the fantasies of forever increasing economic growth.

First, markets has been getting support from the Fed, the daddy of the American dollar, the world reserve currency, since 2018 or 2019, I think it's 2018, that is way before the pandemic when everything is not crashing and defaults are not as much likely as we're getting today, the Federal Reserve and repos. They just wouldn't be able to pull the plugs anytime soon in my opinion and never will be.

Second, the world economy has been slowing down as well, even before the pandemic, and really, I do think that all the little growth we're still seeing before the pandemic is really just debt, and that debt needs to be paid, but what is the ratio of the World GDP again against global debt? Those debt will just never be paid, and central banks will be forced to print fiat until money itself will deteriorate in value, so much that people will be forced to reject or not accept it.

This exacerbated printing in my opinion is already happening and I see no signs of stopping. No, I am not against people in need of gettin support from their own governments. I am against governments rescuing corporations. These corporations, in my opinion, are not just accelerating the demise of a currency by getting huge sums when they are not providing any good value to the economy, or else why do they need to be rescued in the first place? Zombie companies, like these, destroy economies. Resources are limited and should be given to those that will use them efficiently and for the benefit of the people, and no other entity should select which but the markets themselves, not governments nor central banks.

I see huge opportunities in commodities, hard assets. Just not real estate, that gets pumped together with other assets as well by central banks during the artificial good times in an economy, but would more likely retain some value compared to other non-safe-haven assets. I still like precious metals and the mining companies that mine them. They're the perfect hedge to everything that's happening right now, a declining overly supported world economy that causes governments to print more like there's no tomorrow, which will eventually cause hyperinflation in my opinion.

What about crypto? I'm just scared of  the capabilities of quantum computing and how it will affect every cryptocurrency out there. Just do your own research on this subject. I haven't jumped to quantum computing yet but I think I know enough about the subject as well as quantum mechanics to judge it for myself.

I have a few more things that I think is very important but would not give the information to anyone. No, this is not insider information and also related to my post above, just hard to find information and analysis. Send me a message if you want to have it. It's free for family, if you are a relative. Here's my email: aldrinzigmund@tutamail.com

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