Ronald Stöferle

The (almost) everything Bubble

Ronald Stöferle joins Mike Maloney of GoldSilver to discuss the current state of the market. They go over the fact, that we will soon enter a recession and discuss, how governments and central banks will react to this fact. They also discuss, how this will affect the gold and silver market.

The party hasn’t even started yet!

So far, mixed portfolios have suffered heavy losses. The Federal Reserve has not even started its tightening cycle and global markets are already reacting negatively. We have also entered to final stage of the inflation cycle. Monetary inflation gives way to asset price inflation, which finally results in consumer price inflation. We have now entered this final stage. At some point, the Federal Reserve will have to reverse its course, in order to fight price inflation.

 

The (almost) everything Bubble

While not official yet, a recession is already here. While stocks have already lost a lot of value, we are still far away from the previous hights and the median. What is also important, is that while almost everything is in a bubble right now, gold and silver are not. While we view a recession as an important part of the free market, which cleans the economy of malinvestment, governments will certainly not take this approach. We expect even larger amounts of monetary and fiscal stimulus to try to rescue the economy from the current drawdown. This will send gold and silver to new all-time highs.

 

Click here for the video:

Back to journal