Weekend May 19, 2024
23% of Americans with a mortgage owe more than the home is worth. Let one spouse lose their job and I expect they walk away from the debt.
The interest on the Federal debt is more than the defense budget. And with rates on the way up that will only get worse.
Rank Paul commented that a large part of the Federal budget is borrowed money . With Social Security looking to go negative, less revenue than pay out by say 2035, well...
Firms piled on cheap debt right to the rate bottom of March 2020. Now all that debt is coming due and will be rolled over at higher rates, Can small firms pay that debt and stay profitable?
All of which sets the stage for a precious metals rally. The break out in Hecla and oOuer CDE Friday lef no doubt.
CDE
Hecla exhibits the same pattern.
Here is a longer term picture
Notice the new high in volume in the lower chart, the gold and silver bugs are back, and no wonder in world awash in debt.
Here is a long term silver chart. But I think the potential is much higher than $50. The world has never been so indebted.
The weekly ratio chart of the gold bug index to the SPX has been in a downtrend for some time. /Taking out the overhead resistance of the blue line at .054 will be a further confirmation.
For mutual funds, say a 401 or 403
Rydex Precious Metals looks good at $41.
Apache APA is a good proxy energy stock. It is tryiing to break out again, MAuso
D and RSI are trending up.
Patterson PTEN is a major energy service firm in Texas, Note the on balance volume at bottom.
Patterson trades at 96% of book value. RIG is trading at 47%, the largest offshore driller on the planet. NOtice OBV is taking off.
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