The New CS Board

[jumanji0881]

Gold made a big U-turn on Friday even as the US$ continued to rise -
Fatal Macro Warnings: We're Gonna Need A Bigger Boat
https://www.zerohedge.com/markets/fatal-macro-warnings-were-gonna-need-bigger-boat

Excerpt:
So, what will Powell do? Will he 1) tighten QE into a topping market (and thus create an historical market blow-off and global meltdown) or 2) pivot, reverse course and start creating more fiat money faster than a bat out of Hell?

No one, of course, can know for certain.

Volatility Ahead
The Fed is in such a ridiculous corner that neither option is a sane option, and thus the base-case is to expect more market volatility ahead as investors stand on the razor’s edge of either a tanking market or a dying (inflated, devalued and debased) currency.

Gold’s Bull Cycle Is Just Beginning
From its 2009 low to its high late last year, the Fed-created U.S. stock market became the biggest bubble in modern history.

But we believe the gold market’s rise has not even begun. In 1980, when gold topped an 8X move in just 3 years, stocks were flat. If anything, the only “bubble” then was gold itself.

But until recently, the only bubbles in sight were risk assets (from junk bonds to junk tech), which means gold’s time to shine is ahead of us, not behind us.

When considered in the larger backdrop of a commodities cycle, such confidence is an evolution rather than bias.

The recent uptrend in the Bloomberg Commodities Index, for example, is admirable, but does not even compare to the highs it reached in 2011 and prior.

In short, commodities in general, and precious metals in particular, are at the beginning of a bull cycle, whereas over-valued risk assets are approaching the traumatic end of theirs.

As for interim price action in gold, we are not promising a straight line. When risk asset markets tank, gold can temporarily follow, as seen in October of 2008 or March of 2020.

But just after joining those tanking markets, gold then divorced the tantrum trend and skyrocketed north. We see an inevitable gold surge in the tumultuous years ahead, and as investors rather than speculators, time is clearly on our side.