3 Minute Gold News – Jim Rickards – U.S. Election – November 8, 2016

3 Minute Gold News

A Quick Read for Busy People

A synopsis of an interview with Jim Rickards, New York Times bestselling author of The New Case for Gold, The Death of Money, Currency Wars and the soon-to-be-released The Road to Ruin, by Bloomberg.

Jim is the editor of Strategic Intelligence, Chief Global Strategist for West Shore Funds, former general counsel for Long Term Capital Management, and a consultant to the U.S. Intelligence community and U.S. Department of Defense.

by: Elaine Diane Taylor

 

Topic:

Market Reaction to a Trump or Hillary Win

 

Jim Rickards

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Interview Link

 

MARKET REACTION TO A TRUMP OR HILLARY WIN

Here’s the Trade of the Year:

Back in June 2016, with the UK referendum to leave or remain in the European Union, the market was fully priced for ‘Remain’.

Jim said on June 20th, three days before the Brexit vote, to “Short Sterling and buy gold.”

The market was fully priced for “Remain” to win.

It didn’t matter what the result would be, he recommended to short Sterling and buy gold.

If ‘Remain’ won you weren’t going to lose money on the trade, but if ‘Leave’ won you were going to make a fortune.

And that’s what happened.

It’s exactly the same thing right now with the U.S. election.

The markets expect and are fully priced for a Hillary win, and you can short the S&P and buy gold.

If Hillary wins then the S&P isn’t going to rally but if Trump wins it will be a shock, and stocks as a whole will drop 10% as they reprice.

Gold right now is where it was in October when it priced for the expectation of an interest rate hike in December. It rose when Trump was doing a little bit better and then fell back when Hillary got the “all clear” from the FBI.

Gold is priced for a Hillary Clinton victory.

That means it’s going to jump up to $1,400 if Trump wins.

But even if Hillary wins it’s not a losing trade because it’s not going to go lower — it’s already priced for a Hillary win.

A Trump victory will be a 10% decline in the S&P and a leap up for gold.

Stocks have become commoditized. Everything is ‘risk on’ and ‘risk off’.

Some individual stocks will do well if Trump wins, but overall stocks will drop. If Hillary wins nothing happens and if Trump wins it’s a shock.

The Fed will raise rates in December no matter who wins.

The market will then fall out of bed.

Jim’s advice today: Short the S&P and buy gold.

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Jim Rickards can be found on Twitter and at James Rickards Project.

 

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My thoughts…

I was telling people two summers ago that Trump may be seen as a joke to the world, but there’s enough people not doing well in the present system that they could quietly vote in large numbers for someone the establishment laughs at.

The popular kids can sway a room because they’re loud, but only if the majority don’t feel strongly against them. The loud usually get their way and assume it’s because everyone agrees. They don’t. They go along because the less dramatic don’t see the need to create a scene. They just stay quiet while the drama goes on, then go along or leave. I’ve stayed quiet in a conversation many times because the other person is dogmatic or angry about it, or it wasn’t worth being confronted over. Unless it makes a difference to the future. At that time I’ll get louder and cut them off… “I have a point.”

Ever felt like that?

But the voting booth is quiet. It’s just you and you don’t have to tell the loud ones you don’t agree with them. You don’t have to say who you’re voting for out loud and get laughed at. You just vote.

That’s what I’ve thought for a few years now — the advance polls will look like a Hillary win because the everyday people don’t want to say out loud what they’re thinking.

But the end may be surprising.

The quiet majority may just cut them all off… “I have a point.”

Happy Voting Day to my U.S. friends.

 

Elaine Diane~

November 8, 2016

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Gold is $1,276.40 U.S. per ounce

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From the song, “Not Much of a Holiday” –

“Around the corner next in line…another nation. Not much of a holiday”

Line ups at ATMs in India:

Banking Panic in India

New Delhi, November 8: In a surprise televised address to the nation, Prime Minister Narendra Modi today announced that from today midnight, existing Rs 500 and Rs 1000 notes can no longer be used for any transactions. Soon after Narendra Modi ended his public address there is a huge confusion among people across India as what they must do right now. As most of the people across India who had to listen to Narendra Modi’s public address queue up outside of ATMs to withdraw Rs 400 (as Rs 100 note has not been scrapped by the government). Also, Narendra Modi in his public address has appealed to people not to panic.

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Not Much of a Holiday
words and music Elaine Diane Taylor
© 2015 Intelligentsia Media, Inc. All rights reserved.
SOCAN/ASCAP
Single available on iTunes

The Greek bank holiday and long lines to get a few euros for the day. Debt deals behind closed doors. The media telling us what opinions to have. China building islands in the South China Sea and claiming all the international waves. More dealing to come. More standing in line for those who owe. Who owes? There’s a long line of nations in debt and this is far from done.

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AlbumCover.PreparingfortheFall

Preparing for the Fall live boutique album available on iTunes — featuring Wag the Dog, Black Swan Dive,  American Pie and Gods of the Copybook Headings.

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Coins and Crowns
words and music Elaine Diane Taylor
© Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

Single featured in Episode 1 of Mike Maloney’s documentary series Hidden Secrets of Money.

When a nation leaves the gold standard and sound money, and borrows to go to war, then hunger goes up, hope goes down, anger goes up, then it all goes down.


The Gods of the Copybook Headings
words by Rudyard Kipling and music by Elaine Diane Taylor
©2014 Intelligentsia Media Inc.
SOCAN/ASCAP
from the album Preparing for the Fall available on iTunes

The copybooks of the early 1900s gave us all the wisdom we need. The sayings that were copied are the truths, the gods, of our world. All the empires who followed the gods of the marketplace instead have fallen, and there’s terror and slaughter when the gods of the copybook headings return. The lyrics are by Rudyard Kipling. One of my gurus.

Another Week on Wall Street
words and music Elaine Diane Taylor
© 2013 Intelligentsia Media Inc. All rights reserved.
SOCAN/ASCAP
from the album Coins and Crowns available on iTunes

See the bankers wave their Wall Street wands and conjure piles of paper green. Naked short selling is like betting that your neighbour’s house will burn down. But in this scenario it happens to burn down. If the bankers win then we lose the whole world as we know it. I wrote this in 2009, with a lyric “A little grease (Greece) is floating out to sea, and little pigs (Portugal, Italy, Greece and Spain) are bobbing up and down, they’ll send a storm and we’ll see, when the tide goes out who’s naked on the beach“, and it’s coming on now. The world is changing as we know it.

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Nothing on this site is intended as individual investment advice. We’re all watching which way the wind is blowing.

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