Remember, time is money

Gold has reached all time highs and is about the U.S. $2100 mark. It is not because the U.S. dollar is falling from all-time highs. Rather it is because many central banks fear that the U.S. dollar is not as reliable as it used to be. They are diversifying into gold like never before.

Democrat Party sponsored government bills are passed at record pace to stimulate the U.S. economy prior to the upcoming elections. The Democrats, as demonstrated by their recent ‘State of the Union’ by an angry and drugged up Biden, including his opening lie that Donald Trump is Adolf Hitler are losing ground.? Meanwhile, when looking at the polls of swing states, Trump is gaining more and more; resulting in a win in the presidential election versus a lying and power abusing Biden and his Democrat party.? I know, polls and poll numbers lie, and the U.S. voting system is far from tamper free – this seems to be especially true when looking at mail-in ballots.

But if you think that legal prosecution of Republican voters with fake charges is ok, then how can you believe in democracy?? You may actually believe Trump is the devil himself, does that mean you can sue the opposition into oblivion?? The goal justifies the means, and what about the shoe being on the other foot??

Anywho, (is that really Canadian English? ??),?? inflation may have come down ,for now, and interest may be about to fall, this will mostly result in a new push for inflation and thus a pushing up the stock market bubble. With the magnificent 6 being the only part of the stock market that has gained in value, until the coming collapse, which will be severe.? Magnificent 6, where Apple has fallen off the list along with Tesla, while NVidia is added because of the AI bubble.

So, I stick to my guns, the hi-tech stock market bubble is still holding up, but in my eyes these stocks present the highest risk of losing a ‘shitload’ of money. Inflation and CPI may have come off its recent highs because oil and gas prices have moderated to-date, but currently that seems to reverse. Also, if there will be a market crash, all stock prices, including gold may come down and temporary we may get deflation (this is my personal view) but then with subsequent falling interest rates, like in the nineteen seventies, the stock market may come back roaring and so will inflation.

Inflation is likely to reach higher levels than in the previous wave and so will mortgage refinancing costs.?? It is critical to remember that long term U.S. mortgage rates stay the same overtime, but Canadian mortgages reset every 6 months to 5 years (depending on the term) and so, with renewed inflation, can you afford rates of 7% and higher?? Or are you headed for bankruptcy?? Especially for Canadians, I recommend paying down your mortgages to the max.? Use your annual penalty-free lumpsum payment equal to 20% of your original mortgage value; and at renewal time, pay off the max you can afford.?This should make you mortgage free within 5 years.

My final expectation is that mortgage rates may peak over the next decade at 15-20%.? If that happens, investments in long-term government and corporate bonds are likely to fall 60 to 90% in value - Don’t get tempted to buy this investment poison.

To preserve your cash buying power, buy gold, real estate and dividend paying companies that likely will be around for at least 20 years.? Watch out and avoid falling stars such as GE and GM. Apple is at risk of becoming a falling star these days; it depends on how it handles China and the AI revolution. It is far from a sure thing. Have your hand on the sell trigger.

If you really look far ahead, consider Tesla’s AI and humanoid robotics potential and what about the space potential in this company or in Amazon.? Is Microsoft a potential long-term winner with the cloud and AI. Or will its recent purchase/investment in Open AI make it a basket case for never-ending court battles? And how long do you have to wait for capital appreciation to return?? Remember, time is money.

If you want me to discuss why paying off your mortgage ASAP is so important, please, let me know in your comments.