Fear builds greed erupts

We are in the fear building phase where complacency abounds, especially the stock market. Forget the bond market, it is a dead man walking. The rise in precious metals prices is proof. Not everyone is fooled by the money printing, helicopter dropping monetary policies of the Central Banks. Stocks will drop sharply soon, the weakness in corporate earnings , weak capex spending are incompatible with elevated asset prices. Look for cracks in the edifice with the end of earnings season and the advent of the Sept Oct period. Gold target 1550, silver 25-30. Look for a massive spike in volatility across the board in the near future. Remember “Gold is money, everything else is credit”.