The Dow Jones is up 400+ points at time of writing, and its entirely because USA and China have agreed to resume trade negotiations.

dow jones sept 5 19.png

What happens when these trade talks fail?

The problem is there is no reason to believe that these talks will be any more fruitful than the last, because nothing has changed. China doesn't want to acquire more US goods, so the US will be disappointed with their trade deficit, and China wants to keep stealing US tech... so yeah.

Therefore, these talks will resume, then stutter and ultimately fail, and then what? At best the Dow will collapse, at worst the US economy will falter triggering a global economic crisis worse than 2008.

Worse still, if the US economy does tank, watch, it will be right before the 2020 election, and then guess what: Trump will wear it all, and then the crazy communist democrats will steal the presidency. Lord help us.

silver not gold.png

Put your hopes in Silver for now

Meanwhile, on the backs of "trade hopes" silver and gold are down significantly. All I can say is, this song and dance cannot go on forever, and when the music stops I wouldn't want to be holding stocks, or treasury bonds.

Physical precious metals are the only proven safe haven. Hopefully bitcoin will protect us also, and I believe it will, but not even BTC has weathered financial collapse so metals should be a major part of a prudent investors portfolio.

Hopefully the party goes on for a while longer, but its foolish to think it can go on forever. Prepare while you have the chance, so you're not caught off guard when we enter our next, unavoidable recession.

silver gold ratio sept 5 19.png
Source