Uninvestable Markets
What follows the everything bubble is the crash of everything in what has now become uninvestable markets.
The first quarter of 2022 has been a bloodbath for investors with no safe haven places to hide.
Many have allocated 60% of their portfolio in cash, US dollars, since the first quarter of 2022.
As we noted in our top trends for 2022, the US dollar would outperform all other currencies in 2022.
Our rationale for believing that king dollars would outperform remains of the idea that cost-push inflation would remain elevated, pushing yields into negative territory. So to prevent a global investor run on treasuries the US dollar would have to outperform all other currencies.
The alternative of allowing the 10Y treasury to spiral to 10% would cause the US government to default on its 30T deficit and collapse the global dollar denominated debt market.
Put simply, the euro, which we forecast would underperform, is down 13% versus the US dollar. So even if treasuries are negative yielding, the strong dollar makes treasuries a relatively attractive store of wealth, bearing in mind the next internationally traded currency. The euro is likely to continue its decline. We now believe that the euro could fall below parity as policy blunders could push the fragmented continent towards a wider war in Europe and even nuclear winter.
Frankly, the proposed inclusion of Finland and Sweden into NATO, which shares a border with Russia, could, in the worst-case scenario, result in a first-strike manipulation of risk use of a nuclear weapon by Russia.
“If you run NATO right up to Russia’s borders you are asking for trouble,” Professor Mearsheimer
https://mail.google.com/mail/u/0/#sent/FFNDWNXqpWBfwnbfGcpTzvttMWXlRnWT?projector=1
So manipulation of the risk first-strike strategy would serve as a warning to the US and NATO to change behavior, cease or desist or face nuclear annihilation.
If the leaders of Finland and Sweden were wise, they would follow an isolationist policy. But I am not hopeful, bearing in mind that the puppet-masters have doubled down.
Meanwhile, BOJO has signed a defense pact with Sweden and Finland. There is no defense against a country which possesses the world’s largest stockpiles of nuclear weapons with advanced supersonic missile technology capable of delivering a nuclear warhead within your borders and destroying it in 122 seconds. Is the UK PM, BOJO the UK’s existential threat?
These uninvestable markets include UK assets, GBP, stocks, and real estate.
But the European Union could also become an uninvestable market
In times of extreme crisis in which we are living, the self-interest survival motive dominates.
So countries sign pacts when it is in their interest to do so, but when the going gets tough, they do what suits them. Italy continues buying Russian gas and has created a Ruble account. How many other EU countries are doing the same? The EU could not impose no-fly zones on its continent, nor is it able to impose sanctions. How long will Germany keep bankrolling the insolvent southern countries? The coming economic depression could be the EU’s death nail, and the end of the bureaucratic gravy train.
Until there is a deescalation in the US and its allies’ war with Russia in Ukraine, these markets are uninvestable
How do you invest in WW3, potentially a nuclear war?
A sizable holdings of US dollars and its arch-rival Russian Rubles, as a hedge, could be your best play in these uninvestable markets
The gold and now cryptocurrency manipulation continues.
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