I want to try and answer the questions above for you in this Australia-centric report. |
Editor's note: Occasionally, we come across ideas that we simply have to forward to you. This one comes courtesy of our friend Jim Rickards at Strategic Intelligence Australia. | Dear Reader, Hello, Australia. Jim Rickards here. I’m coming to you this morning from my self-sufficient mountain compound on the other side of the world in New England. I’m writing because my Australian Investment Director, Nick Hubble, and I have been brainstorming. Or ‘Zoom-storming’, I guess you could call it. Put simply, the speed and severity of this crisis has flawed even me. Comparisons to 2008 or even the 1929 crash, which started the Great Depression, fail to capture the magnitude of what’s unfolding. You may have to go back to the Black Plague of the mid-14th century for the right comparison. Nick and I want to figure out what happens next. And how this ‘what happens next’ might impact Australian investors specifically. For example... Why is the stock market not crashing when it really should be? What value should the ASX 200 actually be sitting at right now? How long can central banks keep stock markets up as the world goes bankrupt?Which bright spot sectors could shine amid the turmoil of the next two years? I’ve just recommended one such sector to my readers that I believe will outperform the market and produce risk-adjusted returns — even if we descend into a Long Depression.Just how much damage has been inflicted on the Australian economy? You’re better off than most. Or are you...? Plunging GDP, surging joblessness, mortgage defaults, corporate defaults, slashed dividends, cut earnings...is it going to get better or worse for you guys Down Under?What does a ‘recovery’ look like — if we even get one? Will it be L-shaped, where the downturn is steep, but no recovery emerges? Will we just hit the bottom and stay there, with a prolonged period of weak growth? This is the ‘sliding sideways’ scenario.What investments — aside from gold — is it smart to own over the next 18 months...as central banks perform their ‘asset market levitation’ tricks?Look, there are no easy solutions. So much is in flux. And I want to try and answer the questions above for you in this Australia-centric report. But there’s also an even more important question than the ones above that you should be asking right now. CLICK HERE TO READ ON. Regards, | Jim Rickards, Editor, Strategic Intelligence Australia |
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