In December 2018, Jeff Bezos lost billions of dollars, but for those who truly understand the identity of the puppet masters, they know that Bezos and his $140B net worth represent a mere 5%-10% of the wealth of the British royals, the Rockefeller oil dynasty and the Rothschild banking house, who are the true elite.

It looks like 10 years of central banking liquidity infusions that make their portfolios as bloated as they’ve ever been aren’t enough for the greediest of them all, those that made money off of wars, opium and enslavement, among other illegal ventures.

Powell was probably paid a visit by a messenger from the people you don’t say no to. These types of shadow elite don’t play by the rules because they make the rules.

It isn’t enough that (1) the U.S. pension funds are in the hole for trillions of dollars, even after a 10-year bull market, (2) that 17 million people are on minimum wage, not saving a penny while clocking in 50 hours a week to put food on the table, (3) that the wealth gap is the widest on record, (4) that Washington is running $1T+ annual deficits and (5) that they haven’t finished raping America of its tax dollars. Now, they want more stimulus to cover their December losses.

Courtesy: Zerohedge.com

Do you remember Dr. Ron Paul asking then FED chairman, Ben Bernanke, why is it that central banks “own gold?” and Bernanke, forever loyal to his true superiors, the dollar manipulators, replied “because it’s tradition.”

Judging by this chart, it’s more than tradition, old Benny; it’s a CRITICAL STRATEGY.

Central banks are hoarding gold, purchasing it in amounts that rival the shopping spree of a recently divorced hedge fund wife, who got free access to a credit card and the ex’s settlement money. Like her, central banks are buying gold, non-stop.

The 2018 gold buying spree by central banks is the biggest it has been in 47 years.

Investors have already priced dovishness into the S&P 500, so I wouldn’t rule out another big correction unless a new bullish catalyst surfaces. This January rally is far too extended.

As investors, we don’t care what happens next, though. We react to events, instead of attempting to predict them. If stocks rally, we remain patient, not chasing prices up. If the markets correct, we invest in companies that have become attractive and meet our criteria.

What we know for sure is that even though the Fed is signaling that tightening is done, investors don’t trust the gold bull market because the short sellers are back in droves.

Courtesy: Zerohedge.com

The short-sellers attempted the same thing in 2016 and were forced to cover while the mining shares went parabolic. We shall see how this leveraged bet ends for them this time around.

This doesn’t smell or feel like the rate cuts and QE optimism of 2009 or 2011. This is forced stimulus, whereas in 2009, the economy was weak and recovering. Today, the situation is completely different and adding liquidity is a mistake.

Smart money isn’t really getting worked-up about stimulating an economy that’s already at full capacity.

Courtesy: Zerohedge.com

It’s a euphoric rally, this January one, not a justified one, based on improved fundamentals of any kind.

Personally, I wouldn’t be surprised if the next release of public filings shows that many of the smartest investors have been taking profits thanks to this January boom, not increasing positions.

This entire free money stimulus is already baked in the cake. When the FED lowered interest rates in 2011, the economy was weak and recovering, stocks were undervalued, and it made sense to go all-in. Now, the U.S. economy is stronger than in recent years. If you stimulate it, stocks won’t be the only asset class to get inflated – commodities will as well.

Investors got burned so badly in the past two years after the false breakout of 2016 that the trauma hasn’t been forgotten about yet.

What I follow more closely than anything else are (1) the amount of daily trades for my basket of tell-tale mining stocks and (2) the volume size.

When there’s interest in miners, both of these multiply by 50-100 times. It is like thousands of investors come out of the woodworks all of a sudden.

It’s not happening at the moment. We’re in the denial phase. No one trusts gold to not disappoint.

When investors really come to grips with the huge bailouts that the Federal Government will have to approve for pension funds, unemployment benefits, and income security in the next recession, denial will morph into epiphany.

Gold is the right trade. Silver is the match that lights up the sector, so we’ll have to wait for the ratio to shrink to 70:1 before fireworks occur, but we’re getting really, really close.

Best Regards,

Lior Gantz
President, WealthResearchGroup.com