While the possible collapse of the Treasury-bond market and the end of the global dollar financial system will certainly be catastrophic for many companies, there are still plenty of great businesses that will continue to provide goods and services and earn good profits.
On Tuesdays we turn the spotlight outside of Porter & Co. to bring you exclusive access to the research, the thinking, and the investment ideas of the analysts who Porter follows.
Over the past half century, the price of gold has risen more than 7,500% in U.S. dollar terms, yet, over the same period, gold stocks have risen only 1,000%. In this week’s Big Secret, we explain why and how it can play out in your investment outlook.
Even with stocks at all-time highs, the price of gold soaring, employment strong, and inflation at 3%, America faces its gravest financial situation of all time… In today’s Daily Journal, Porter explains why.
Nearly a decade ago, Porter made a big gold-stock recommendation that generated massive returns. Now we see another huge opportunity in this space. In fact, this setup could prove to be even better than the last one – because there is one key difference now.
Central-bank gold buying increased enormously after COVID. So far in 2024, demand is surpassing those record amounts, with 483 tons purchased in the first half of 2024 – a new record. Who is buying? The countries that have firmly rejected American hegemony.
If you doubt that inflation is an ongoing concern, and that the dollar is slowly becoming worthless, just look at the price of a Ford F-150 pickup truck today compared with when it launched in 1973 – in terms of wages, the price of gold, and other factors.
In today’s Journal, Porter talks about America’s huge $35 trillion debt level. These debts are already so large, there’s no legitimate market-based way to finance the astronomical growth in government spending that lies ahead. “I’m not talking about a crisis in 2040,” he says. “I’m talking about a crisis by 2026.”
In today’s Journal, Porter explains the simple reason why this one sector of the market always outperforms the overall market and always will: these companies get all of their capital for free.
The recent surge in foreign banks buying gold has occurred alongside a sharp decline in their purchases of U.S. Treasury debt. The result could ultimately lead to a “debt doom loop”.