Sneak Peek: Everybody’s a Winner
Today we're bringing you a sneak peek at Nick Hodge's Wall Street's Underground Profits.
It's easy to get the feeling that everything is going well — or at least as well as they could — in the market. But that bakes in a bias.
The U.S. market is insulated, but not for long, and not all winners are equals. Read on for Nick's take.
Editor, Outsider Club
Everybody’s a Winner
U.S. stocks at or near all-time highs. The dollar is strong. Gold is at seven-year highs.
If everything is winning does that mean no one is losing?
Well, not exactly. Oil hasn’t felt too winningy.
Europe hasn’t felt too winningy.
China is negative over the last two years as well.
And if it weren’t for the U.S. and its Federal Reserve and the dollar’s current position as the global reserve currency… I’d bet U.S. stocks would more resemble Europe and China.
Oh, and Australia. Almost forgot the folks down under who are now experiencing their first recession… just checking my notes here… in 30 YEARS.
So let’s list the reasons why U.S. stocks are going up:
1. They are the world’s cleanest dirty shirt.
2. They are the recipient of unprecedented direct equity purchases and bailouts from the government and Federal Reserve (which effectively means they’ve nationalized the stock market, but that’s a trivial matter in these times)
If that’s what you consider a good bull thesis, enjoy your NASDAQ gains. Don’t fight the Fed wins again. Sort of.
What most in the mainstream fail to miss — but you don’t because you’ve been reading this letter — is that gold and gold stocks are delivering much heftier returns at present than even the frothiest tech stocks.
For example, Amazon has delivered a historic year of stock returns by most measures. It has been lauded by financial TV types and newsletter writers alike as it marches to all-time highs — delivering some 40% upside in the face of a global pandemic.
Here is Amazon charted against our holding in Teranga Gold (TSX: TGZ)(OTC: TGCFF) over the past year:
Teranga is up 210% in the same time the record-breaking Amazon is up 40%.
And yet I hear no one on TV talking about gold and gold stock gains.
It’s almost as if these are Wall Street’s Underground Profits.
I’ll show myself out...
Call it like you see it,
Editor, Wall Street's Underground Profits
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