Jobs Market Is Stalling And The Economy Will Slow Down, Tariff Turmoil Is Going To Cause Alarming Stagflation, Get Gold!!!
Tariffs are starting to rear their economically destructive head in the jobs market with alarming downward revisions for May and June, with a troublesome July report as well. They are creating a tremendous amount of uncertainty which affects companies when it comes to hiring, laying off workers and making capital allocation.
They will also affect inflation as the effects of front running to build up inventories plays out. Plus, when they make their way through the supply chain and out to hit consumers when they buy stuff.
These issues are why consumers and CEOs are worried about economic growth and inflation. They have their finger on the pulse of the economy much better than politicians and people at the Fed.
As noted many times in past reports, stagflation in the real economy has been a growing problem and is about to get much worse.
While generalist investors are buying stocks on Wall Street, and most alarming is that the level of margins is at its historical high. They are making a very expensive mistake and totally ignoring the concerns of consumers and CEOs. Wall Street CEOs are selling stock at a rapid pace because they are concerned about economic uncertainty due to the tariffs.
The topic that should be top of mind for all investors is stagflation as it could get worse than in the 1970s. And position themselves in gold and silver because they are the perfect hedge against stagflation.
Even better are the miners, developers and explorers with important discoveries. There has never been a better time to be bullish on the metals stocks because while gold and silver, as well as other metals are very strong, the metals stocks are still very undervalued.
I will be talking about these topics more fully on my weekend show, stay tuned.
All the best,
Allan Barry Laboucan
