Below, I informally share my 2020 Market Review with a brief video to close a year none of us will soon forget, and a coming 2021 full the known and unknown.
Looking Back
As we close the end of an unforgettable 2020 and head into Christmas and time with our families, we too are scurrying and thus intending to make this final report of the year more visual than literary.
Looking back on 2020, the markets and year opened with many warning signs even before COVID made the headlines.
The repo disaster in September of 2019 and the renewed QE which began a month later were all signs of further emergency measures for a system in need of constant support due to its deep, but largely ignored systemic risks.
COVID, of course, accelerated and revealed these risks, as markets tanked in March, only to be artificially revived by a Fed respirator in Q2 and record-breaking levels of monetary and fiscal support.
Such “support,” as we discussed here, here and here is really just more debt masquerading as a solution.
Of course, informed investors know that a debt crisis cannot and will not be resolved with more debt; instead the systemic rot can simply be can-kicked.
In the surreal interim, markets thus continue to climb as economies continue to fall, giving more than enough evidence that the financial markets and the banks which serve them have one priority—each other, not economic growth.
It’s a rigged game, one which elevates a minority and makes serfs of the economic majority.
Disgraceful.
This is sad, but nothing new to those who have long ago shed any illusions about the magical powers of our so-called financial elites.
Looking Ahead
Looking ahead into 2021, the IMF and others are already making headlines with talk of a “great reset” and conveniently using the COVID crisis to mask years of their own gross negligence in managing the global economies.
Today, global debt is at $280T, with $200T of that having accrued since 2000.
Folks, that’s appalling. That’s unsustainable, and that had nothing to do with COVID.
The solution proposed by the world bankers (who put us in this debt graveyard) is really nothing more than more debt paid for with more fabricated currencies, only now there is talk of a new banker’s crypto.
Unless this new crypto is backed by gold, it will be nothing more than another fiat currency replacing an old fiat currency.
In short: A farce disguised as financial wizardry.
Meanwhile, diluted global currencies lose purchasing power by the minute.
The recent rise of Bitcoin is just further proof of the growing distrust in debased fiat currencies.
For us, gold is the only real money, and though not as sexy as BTC (for a reason), it is certainly more stable for those looking to stay rich rather than get rich.
Steady Solutions from SignalsMatter.com
As far as markets and your portfolios, the risks and rewards are asymmetric and everywhere.
Much will hinge upon the longevity or stalling of monetary policy, which we’ll be tracking carefully into 2021.
As of this week, and coming as no surprise, the FOMC has already signaled gobs more money printing for the coming year..
On the technical side, we are seeing numerous indicators of market exhaustion heading into 2021, the details of which are charted and defined daily and weekly for our subscribers, as are the updates for our all-weather portfolio designed to keep investors safe regardless of the conditions ahead.
For now, we leave you with this brief video re-cap of 2020 (as well as peek into 2021) and wish you all the safest and best of times during this holiday season.
As always, feel free to learn more about our services here, and enjoy this time with your family and friends, be it by Zoom or in person.
Happy Holidays and see you in 2021!
Matt & Tom
