2023: Year of the New Gold Bull

Don’t miss your morning briefing [Morning Reckoning] January 24, 2023 [WEBSITE]( | [UNSUBSCRIBE]( 2023: Year of the New Gold Bull - Powerful emerging trends… - Miners heading higher… - Gold rally is just getting started… Baltimore, Maryland January 24, 2023 [Greg Guenthner] GREG GUENTHNER Good Morning Reader, Last week, we discussed the market forces behind the 2022 growth meltdown. Now that we’ve shaken off the cobwebs, it’s time to look ahead and focus on the stocks and sectors with the best potential to take the lead in 2023’s first quarter – and beyond. Unfortunately, many investors are going to miss these opportunities. An unhealthy fixation on the tech space is part of the problem. Yes, the market has slaughtered most tech growth stocks. Many of these once astronomically overvalued names are a little less expensive as a result. But it’s a stretch to claim any are legitimately cheap. I doubt most of these stocks are going to launch back to their Covid Bubble highs anytime soon. Sure, we’ll get snapbacks. But I’m not so sure about long-term rallies… Of course, these facts aren’t going to stop most speculators from attempting to play every bounce. The market will most likely take its time to bleed off the excess enthusiasm – and mash the bottom fishers to a fine pulp. Even if we don’t see a major move lower in the Nasdaq in the months ahead, a grinding bear market characterized by choppy, range-bound action could add to an already frustrated investor class. While the less-nimble gamblers continue to hemorrhage money on out-of-the money tech stock calls, you can actually sink your teeth into some incredibly powerful emerging trends in once-dark corners of the market. If you know where to look… [Biden’s “Hush-Hush” Plot Uncovered]( [This Simple Chart]( Right now, Joe Biden – along with 9 of the world’s largest banks – have initiated [a disturbing new experiment with YOUR cash](. It’s called “Project Cedar” – and up to now it’s been kept fairly “hush-hush”… But in [this urgent new exposé]( you’ll discover critical details behind Project Cedar and what Biden’s master plan really is. [Click here to learn the critical details before it impacts your money](. [LEARN MORE]( Silver Leading the Way Today, I want to talk about one of this year’s big opportunities: precious metals. Not only are gold, silver and mining stocks powering higher on shorter-term timeframes, they’re also creeping up on key long-term levels that could trigger a new secular bull run in the metals – perhaps the likes of which we’ve not seen in nearly two decades. Have you noticed the action in gold over the past three months? The yellow metal has launched back to new 8-month highs after it appeared to be breaking down late in the third quarter. The quick runup from $1,600 to more than $1,900 snapped the post-Ukraine invasion downtrend and has set gold on a collision course for $2,000 for the first time since August 2020. The gold rally has lit the fuse on the miners, propelling the VanEck Vectors Gold Miner ETF (GDX) to a gain of 50% off its late September lows. Remember, these are the stocks no one wanted to own during the previous bull market and subsequent Covid Bubble. Powerful momentum moves are now propelling these stocks into some of the best trades on the market. Silver is also in play, adding some much-needed credibility to an area of the market plagued by false moves and countless fakeouts. I’m more inclined to jump into precious metals trades when gold’s more speculative cousin is leading the way. That’s exactly what’s happening right now. Silver more than doubled up gold’s performance in Q4, confirming that we’re finally seeing some serious flows into the precious metals space. This is all great news for short-term minded traders. But bigger market forces are also at play. [[CHART] Could Inflation Hit 20%+ In 2023?]( [This Simple Chart]( Take a close look at this scary chart pictured here… What you see is the money supply in America… And as you can see, the number of dollars in circulation has exploded in the last few years. In fact, more than 80% of all dollars to ever exist have been printed since just 2020 alone! Which is why some say inflation could soon explode even higher than it is now, to 20% or more. And if you’re at or near retirement age you must take action now to protect yourself… otherwise you risk losing everything. [Simply click here now to see how to survive America’s deadly inflation crisis](. [LEARN MORE]( History Repeats Market conditions are aligning for an potential extended, multi-year move that could thrust gold and silver to new highs and beyond. The similarities between the market now and the mid-2000s are striking. Consider the action in the years following the late 90s dot-com meltdown: - A secular bear market began with little to no upside traction in the indexes. - Investors dropped overvalued tech stocks in favor of value names and resource plays. - Gold finally posted a major breakout in 2004, triggering a bull run lasting seven years and gains of more than 350%. Fast forward to 2023… and it’s easy to notice the similar forces at play. The averages remain significantly below their Covid Bubble highs, especially the tech-heavy Nasdaq. Meanwhile, value cyclicals, energy, and other resource plays are firming up and beginning to assume leadership roles. Gold already produced a significant rally off its bear cycle lows, breaking out of a bottoming formation in 2019. The move accelerated into the Covid fiasco, and gold has remained in a wide, choppy range for the better part of the past three years. Despite its success in taking out those 2011 highs, gold has yet to extend higher. That could change very soon as another attempted run at the 2K mark shapes up. Here’s a big-picture look at the trend: [chart] Price topped out just above $1,900 during the prior cycle in 2011. Yet the two brief runs above $2,000 in 2020 and 2022 led to sharp reversals. Third time’s a charm? It’s possible! The more times a level is tested, the more likely it will break. Another important fact to keep in mind: Gold has never posted a monthly close above $2,000. A decisive break of this round-number will undoubtedly attract renewed attention from the mainstream financial media and retail investors. I suspect that could lead to a fast and furious rally, producing impressive gains in the mining stocks. Of course, the initial momentum move could also be the first wave of a new secular bull run for precious metals. Traders and longer-term gold investors will each have the chance to profit. Remember, most retail investors will have to scramble to catch up with this breakout. Index funds offer essentially zero exposure to precious metals. If you want gold, you have to go out and get it. As a major rotation begins, the flows will be huge since most folks are on the wrong side of the boat. If you’re a longer-term gold bug, just sit back, relax and enjoy the show. If you’re looking for short-term gains, snag some miners for your trading portfolio. The next gold rally’s just getting started… I’ll be back on Tuesday to give you more market insight. Let me know what you think of today’s article by emailing me at feedback@dailyreckoning.com. All feedback, questions and suggestions are welcome! And be on the lookout for fellow contributing editor, Sean Ring this Thursday for his take on the latest market news. Best, [Greg Guenthner] Greg Guenthner Contributing Editor, Morning Reckoning feedback@dailyreckoning.com [Military Experts preparing for a “Pearl Harbor Style Attack” on Guam?]( [This Simple Chart]( Putin invades Ukraine… China launches rockets over the straits of Taiwan… And as we speak, military experts are warning the US to “Prepare for a Pearl Harbor Style Attack” on Guam. [Is the beginning of World War III?]( But more importantly, there is an [exact playbook]( on what is playing out in the world and what you need to do to prepare. [Simply click here now I’ll show you how to claim your copy]( [LEARN MORE]( In Case You Missed It… Sean Ring, Contributing Editor Davos Be Damned! [Sean Ring] SEAN RING Dear Reader, As I was sitting in my chair steaming over the latest World Economic Forum tweet, one question popped into my head. Why do the Swiss put up with it? Let’s face it: there’s a cartoonish Bond villain sitting in his mountainous lair, just short of a mustache to twirl, plotting to remake the world in his own image. And if that’s not bad enough, the man who taught Klaus Schwab about geopolitics during his days at Harvard is none other than Henry Kissinger. Yes, the Henry Kissinger responsible for giving away all of our technology to China. Yes, the Henry Kissinger responsible for the war crimes of Operation Speedy Express and Operation Menu. Yes, the Henry Kissinger who refused to serve on the 9/11 Commission because he wouldn’t divulge the names of his shady clients. That Henry Kissinger. If Jimmy Carter is a far better ex-President than a President, then Kissinger is a far more influential statesman now than he ever was as Secretary of State. Why? Because his ace student is the Chairman of the World Economic Forum. Eat ze bugs. You’ll own nothing and be happy. Go green or go home. You know, all those things none of us want to do. And yet, every year, Schwab rounds up the world’s leaders and bids them come to his lair in Davos, for a chat. And every year the Swiss government doesn’t just tolerate the World Economic Forum, it encourages the WEF. Maybe that’s because of the enormous economic benefit to the Swiss economy. Finally! A Useful Congress! After all, if you’re a prostitute who charges EUR 700 per hour and EUR 2,300 for the night, who better to hit up than those with unlimited taxpayer funds? Meet Salomé Balthus, a Davos escort. [tweet] Source:[@Salome_herself]( Be careful, Salomé! You don’t want any of those security guards accidentally tripping their triggers… Zero Hedge reported on the “[Dark Side of Davos]( earlier this week. (I suppose their man had to pay extra for that.) And of course, the UK’s The Daily Mail had to pitch in. The Mail is the Official Newspaper of English Housewives™. It’s so wonderfully informative that all those wives now know what their traveling husbands are doing. I’m reminded of a true story a fellow City banker told me. “The City” is London, of course. Not New York. A mutual friend of ours was at a high-end brothel in Chelsea getting his usual… ahem… “services” when a call came through. (Yes, in those days you’d take personal calls on the brothel’s landline without any fear of exposure. Ladies of the night had infinitely more discretion then than they do now. Damn Instagram to hell!) He hastily tightened his robe, slipped on his slippers and opened his door to pick up the phone. But upon opening the door, he shrieked in horror. Across the hallway, an older gentleman had just tightened his robe, slipped on his slippers, and opened his door. My friend gasped and exclaimed… “Dad!?” After the obligatory wincing, he realized the trouble wasn’t so much seeing his father like this. The real trouble was figuring out which one of them the phone call was for. Oh, were our problems that small nowadays! But I digress. The Devil Went Down to Davos Before you clutch your pearls and exclaim, “I can’t believe they do that over there!” one must banish Cotton Mather and Jonathan Edwards from their American Puritan mind. Prostitution in Switzerland is completely legal and regulated. There are over 20,000 sex workers in the country. Hell, they even accept credit cards! That means these politicians can even claim back the cost of their exploits on their expense accounts. It’s incredibly thoughtful and efficient if you ask me. And thanks to a sweet deal with the European Union, an EU sex worker can obtain permission to work for 90 days in Switzerland if they present themselves to the relevant city authorities, undergo a police interview, and provide proof of a health insurance plan. My goodness, they thought of everything! The Mail was so impressed, their article included pictures of Salomé, practically advertising these services in Davos. But, admittedly, I’m making light of a tremendously important forum. The bootlicking Brookings Institution [wrote in one paper]( that “It is appropriate to criticize the World Economic Forum as an elitist gathering of the super-rich.” In the next paragraph – really – the same author wrote, “It is, however, in these precarious times that we need Davos more than ever.” Really? And if so, why are we funding the UN? But these elites – their word, not mine – need to have some good, clean fun. After all, if Klaus Schwab, Ursula von der Leyen, and the second coming herself, Olena Zelenska, can tolerate a bit of Totalitarian Tallywhacker messing about the joint, who are we to object? Anyway, the pollution their private jets are belching into the atmosphere is far worse than a bit of Hide the Bratwurst. Just ask them! At the last WEF gathering, over 1,000 planes arrived to join in the frippery. But Forum President Borge Brende said, “I think what is more important than that is to make sure we have agreements on how we, overall, move and push the envelope when it comes to the green agenda,” he said. As with all things at this glittering party, watch the hips, not the lips. Greg will be writing to you on Tuesday with more market insight, so make sure to keep an eye on your inbox! And like we pointed out earlier, if you didn’t catch his article this week, we included it below. Let me know what you think of today’s article by emailing me at feedback@dailyreckoning.com. Looking forward to your thoughts (and to writing to you next Thursday morning!) All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com Thank you for reading The Daily Reckoning! We greatly value your questions and comments. Please send all feedback to [feedback@dailyreckoning.com.](mailto:dr@dailyreckoning.com) [Greg Guenthner] [Greg Guenthner, CMT,]( is chief strategist at Forge Research Group. He has spent the better part of the past two decades developing long-term and short-term strategies with a single goal in mind: to help everyday investors generate outstanding returns and control their financial futures. Greg’s charts, analysis, and insights have appeared in Marketwatch, Forbes, Yahoo Finance, and many other financial publications. [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. 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