A Global Awakening Is Afoot

Written by Nick Hodge
Posted October 23, 2019

The CEO of WeWork just lit $10 billion on fire. And his lead investor, Japan’s SoftBank, paid him $1.7 billion for doing so. 

The entire world is losing its marbles. 

This is big business stuff, you know. The kind they talk about on CNBC. People got MBAs for this!

Wall Street’s darlings are literally companies that make no money. I’m looking at you Spotify and Uber and Lyft and Peloton and, and, and…

Here’s how crazy the investment world is right now: Last year, money-losing companies that went public performed better than profitable ones. 

It’s the exact opposite of how the market is supposed to work. 

“They’re in growth mode,” they say. They could be profitable if they want. Riiiiiight. 

Then again, interest rates are supposed to be positive as well. 

And that’s sort of my point… 

This entire market, from the cult-like following of Silicon Valley unicorns that don’t even make money… to the Fed’s incessant market toying over one decade after the last crisis… to cutting earnings forecasts so companies can “beat expectations”... to share buybacks exceeding free cash flow… is fake — propped up by the ongoing largest global financial experiment humanity has ever seen. 

It’s legitimized only by neckties and the newsman's voice. 

CEOs, Fedheads, and the government have nearly run out of fingers trying to plug all the leaks. 

Ask other countries what it looks like when people call bullshit on this scam. France has seen ongoing Yellow Vest protests for a year now. The Hong Kong riots have spilled over to the NBA court. In Chile, over 10 people died in riots this week that started with a 3% rise in subway fare. 

The people are willing to die over a 3% fare increase because they're at their wit’s end. Meanwhile, tech bros are getting billion-dollar bailouts for running shitty companies. 

A global awakening is afoot.

Part of that awakening will be the people’s realization that the government steals from them by manipulating the currency. And that that manipulation and theft is directly transferred to their corporate overlords. (You saw some of this realization occur with the advent of cryptos.)

Part of that awakening will be the people’s realization that those corporate overlords have stolen their privacy, and to some extent their freedom, by prying, spying, tracking, digitizing, and monetizing their every move. 

And with those realizations will come revaluations. 

Revaluation of priorities. 

Revaluation of what’s real. 

And a revaluation of assets. 

The writing is on the wall and the Mainstream is finally starting to get it. 

Globally renowned consulting firm McKinsey said this week that over half the world’s banks could fail when the downturn hits. 

The Financial Times warned this week that we’re in for the bursting of another tech bubble, with too much money chasing too little value. 

I wonder where all that money came from. 

Gold is also telling you what the deal is. It remains at six-year highs, in a bull market. 

And the gold profit window is still open until the door slams shut on all this other crap. 

Call it like you see it,

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Nick Hodge

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Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick’s Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.

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