A Bright Spot for Investors in 2023, Part I

[Inside Wall Street with Nomi Prins]( Welcome to Inside Wall Street with Nomi Prins! It’s the only daily newsletter featuring the insights of renowned author and former Wall Street insider, Nomi Prins. Every day, Nomi shines a light on a massive wealth transfer she calls The Great Distortion. That’s the true cause of the permanent disconnect she sees between the markets and the real economy. And she shares ways you can come out ahead, if you know where the money is flowing. You’ll find all Nomi’s Inside Wall Street issues [here](. If you have questions or comments, send Nomi a note anytime [here]( or at feedback@rogueeconomics.com. A Bright Spot for Investors in 2023, Part I By Nomi Prins, Editor, Inside Wall Street with Nomi Prins I won’t sugarcoat things. When I look at the economy, it’s hard to ignore one thing: A recession is looming. Inflation is still at decades-high levels. Yes, the latest Consumer Price Index (CPI) figure of 7.7% did show a slowdown in the pace of inflation. But it’s still high. I believe it will remain above 6% for the first half of 2023 at least. This is because rents continue to rise as the housing market slows… And energy and diesel prices are likely to remain high into the winter months. But despite that, I do see bright spots for investors. And as I’ll show you in today’s essay, one of those bright spots is in gold. Recommended Link [You don’t have to “ride out” the bear market]( [image]( Nobody believed Larry Benedict’s prediction in February 2020. The DOW plunged 3.5%, and he told CNBC, “It seems like there’s much more to come.” Within a month, the market plummeted 34%. Then, nobody believed Larry at the start of this year, either. He predicted that “all the indexes will be negative for the year,” with the Nasdaq leading the way. Once again, he was spot-on. Anybody who followed his recommendations could be well in the black. Now, for the first time, Larry’s coming forward to share a brand-new forecast. [Click here to watch his interview right now.]( -- “Gold Doesn’t Pay Any Interest” 2022 hasn’t been an awesome year for gold. That is, for gold prices vs. the U.S. dollar anyway. The reality is that against nearly every other major currency, gold prices did just fine. That’s what the chart below shows… [Chart] Now, gold prices relative to the U.S. dollar came under pressure this year for two main reasons: - Rapidly rising interest rates (to fight inflation). - Geopolitical tensions due to Russia’s invasion of Ukraine. Both contributed to the U.S. dollar’s strength. High rates are usually negative for gold. That’s because it’s considered a non-yielding asset. As legendary investor Warren Buffett once said, “Gold doesn’t pay any interest.” So as interest rates rise, folks will often choose to invest in interest-bearing accounts instead of buying gold. Or they’ll place their money in higher dividend-yielding stocks. But here’s the thing… Just before gold prices turned south – when the Fed’s rate hike machine kicked into gear with a 25-basis point hike in March – the price of gold was soaring. [Featured: Former Goldman Sachs Exec: Everyone on Wall Street is investing, should you?]( At the start of 2022, all the markets were poised to rise. Central banks were fueling them by creating trillions of dollars and keeping rates near zero. Plus, the pandemic was mostly in the rear-view mirror, and consumers could go out and spend money and move around again. Gold prices rallied to above $2,000 per ounce during the day on March 7, 2022. The last time that had happened was in August 2020, when the world was grappling with the uncertainty of the pandemic. In response, the Fed cut rates to 0%... and it had nearly doubled the size of its book within five months, to nearly $7 trillion. Gold’s March 2022 rally was also largely due to safe haven investing. That was driven partly by fears about the ramifications of Russia’s invasion of Ukraine in February. But it was also due to rising inflation in energy, food, and fertilizer prices that accelerated due to the fallout of that invasion. Sanctions on Russia placed further strain on the global economy and led to soaring natural gas and other prices. But because of rapidly rising inflation, the Fed was compelled to act. Other central banks followed suit. Recommended Link [$150 Trillion | Transformation of US | Bezos/Musk]( [image]( This is troubling. Have you heard of COP26? Almost nobody has. Amid the distractions caused by lingering health issues, conflicts overseas, shortages, and inflation… Treasury Secretary Janet Yellen recently took the stage at COP26 in Glasgow, Scotland to address some of the world’s most powerful people. From the stage, Yellen called for world leaders to commit to a $150 trillion ‘global transition’ of our economy. Since then, Bank of America has signed the accord, along with 131 countries, 234 cities, and 695 of the world’s biggest companies. Jeff Bezos and Elon Musk have invested in this ‘transformation’ as well. What is it that Yellen, Biden, Trudeau, Bezos and Musk are pushing for? And what does it mean for your money? Investigative journalist and renowned economist, Nomi Prins has followed the money… And what she’s found is startling. [Go here to see how this ‘transformation’ will play out – and what it means for your money.]( -- A Good Set-Up for Gold Since March, the Fed has continued its path of aggressively increasing interest rates. This has had the effect of elevating the U.S. dollar to a two-decade high. Gold prices fell in comparison. So did the stock market and bond market. You can see this in the chart below… [Chart] Gold has fallen by about 3% this year vs. the U.S. dollar. But here’s what the chart above doesn’t show… Gold is actually up around 7%, and it’s up 18% relative to the euro and yen. Gold has also stood up very well compared to the Transformative Tech and New Money sectors. For instance, Facebook (or Meta) shares have dropped by 65% and Bitcoin by 64% since January 2022. Recommended Link [“Stocks Are in Bubble Similar to Biggest [Crashes] in History” – Wall Street Legend]( [image]( “If you think we have made it out of the woods, with markets being down over 20%... Think again, this is just the start. But honestly, I couldn’t care less where the markets head, because I profit no matter what. All by ignoring almost every asset in the world. Ignoring tech stocks, crypto, bonds, dividends, and practically everything else. Because when times are tough, and I need BIG, quick, and low-risk, high-reward plays… [I simply trade ONE stock – over and over again.]( I’ve done this throughout my entire 38-year trading career. Achieving a record-breaking 800 winning trade recommendations… 10 “Double Your Money” trades in 2008… 7 “Double Your Money” trades in 2020… [12 “Double Your Money” trades in 2022… ”]( – Jeff Clark [Click Here to Watch a Live DEMO.]( -- Now, as regular readers know, I believe the Fed is going to initiate [Stage 1 of its pivot]( as early as next month. As a refresher, Stage 1 means it will reduce the size of rate hikes. Stage 2 will be a pause in rate hikes. That could happen as early as the middle of next year. And that presents a good set-up for gold. See, generally, rising rates and a strong dollar are bad for gold. That’s because gold and other precious metals are mostly traded in dollars. [Featured: One Stock Doubles Your Money, During Crisis?]( The stronger the dollar gets, the more expensive it is to buy gold for foreign investors. That weaker foreign demand causes gold prices to drop. But, if the dollar weakens, even a little – which it would likely do on any stage of the Fed pivot – it could catalyze a boost to the dollar price of gold. So with that, on Monday, we’ll look forward to 2023. There are four main factors that could boost the price of gold vs. the dollar. And in Monday’s dispatch, we’ll break them down one by one. Regards, [signature] Nomi Prins Editor, Inside Wall Street with Nomi Prins --------------------------------------------------------------- Like what you’re reading? Send your thoughts to [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=Inside Wall Street Feedback). --------------------------------------------------------------- MAILBAG Does gold hold a place in your portfolio? Do you agree with Nomi’s prediction that a good set-up for gold is imminent? Write us at [feedback@rogueeconomics.com](mailto:feedback@rogueeconomics.com?subject=RE: A Bright Spot for Investors in 2023, Part I). IN CASE YOU MISSED IT… [Goldman, BlackRock, Apple & Amazon Buying This…]( [Everybody is pouring money into this.]( Goldman Sachs invested $1.5 billion. JP Morgan spent $2 billion just in 2021… and plans to spend $10 billion more. And the world’s biggest asset manager, BlackRock, is going even bigger, investing $10 billion, saying it will provide a source of “perpetual capital.” In fact… A recent survey of 105,000 large institutional investors reported 95% are planning on[increasing investment in this sector.]( And they are not alone. Apple is spending $1.4 billion. Google says they are going to invest $9.5 billion in 2022 alone. And Amazon has already spent $34 billion. Tens of billions are pouring in. With more on the way… [To see what’s got everyone on Wall Street so excited, click here.]( [image]( Get Instant Access Click to read these free reports and automatically sign up for daily research. 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