Several Central Banks already buy stocks and bonds with printed money, including the Bank of Japan, Swiss National Bank and the PBoC. It now looks like Germany’s Bundesbank is going to begin dabbling in the German stock market, extending its market invention beyond the bond market.
I’m certain the United States’ Exchange Stabilization Fund buys at least stock index futures, if not the shares of companies deemed essential to “national security.” Given Trump’s tendencies toward dictatorial decrees (see “The Wall” debacle), I suspect eventually he’ll order the Fed to print money and buy stocks directly rather than by proxy via the ESF in an effort to keep the stock bubble from blowing up in the context of a deepening economic recession.
Bill Powers invited me onto his Mining Stock Education podcast to discuss why I believe the move in the precious metals this summer is just beginning. We also discuss why it will pay off to focus on junior exploration “venture capital” companies, many of which will throw off 50-1000% returns (or more) if gold and silver continue to move higher:
If I’m right, and if the metals continue moving a lot higher, we should start to see stocks like AG move well above their 2016 highs. Eventually many of the juniors will be 3-5x higher than their current level. We got a taste of the type of moves juniors will start to make this week.
The Mining Stock Journal covers several mining stocks that I believe are extraordinarily undervalued relative to their upside potential. I also present opportunistic recommendations on select mid-tier and large-cap miners that should outperform their peers. You can learn more about this newsletter here: Mining Stock Journal information.