from Peak Prosperity
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Argh…today’s update is hard to write with a cool head.
As we get a clearer picture of the historic and unprecedented carnage wrought on the economy by covid-19 in both size and scale, the markets blithely march higher.
Today’s case in point: the April unemployment rate was released this morning. 14.7%!
And we already know this number is far below reality. April rate only reflects 20 million jobs lost; the latest tally is over 33 million.
Federal Reserve President Neel Kashkari estimates the current true unemployment rate is closer to 24%(!!)
So, what’s the reaction of the markets to today’s worst-ever-by-far-in-history unemployment print? They rally higher, naturally:
Since rebounding sharply from the March lows, the markets have re-entered a manic melt-up phase where no news is so terrible it can’t send prices higher.
The NASDAQ is green on the year now, for crying out loud. How is that even possible since, between then and now, GDP has fallen by 30%???
In an attempt to understand these increasingly non-sensical markets, we’ve once again asked the lead partners at New Harbor Financial, Peak Prosperity’s endorsed financial advisor, for their latest perspective.
In the below video, we discuss the current melt-up, what history tells us comes next, and why seasoned successful investors like Warren Buffett and Paul Singer are currently exiting stocks and buying gold:
Anyone interested in scheduling a free consultation and portfolio review with Mike and John can do so by clicking the link below