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October 30, 2020 | What Happens When Economic Bubbles Burst?

Bob Hoye has been in investment business for some 50 years, making him one of the more experienced researchers. His historical work has been thorough providing the first recognition of the fascinating transition from speculation in commodities to speculation in financial assets. It was controversial when Bob observed that “No matter how much the Fed prints, stocks will outperform commodities”. In January 2000, the research team concluded that the Dot-Com Bubble would peak in March 2000. In early 2007, the team outlined that the credit markets would reverse in May-June 2007. They did and the stock market followed. The latest was the call in early October for the Bitcoin Bubble to complete in December. Bob’s essays and speeches on political change and on actual climate change have been widely circulated.

How can you have declining markets with inflation?

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Archives October 30th, 2020

Posted In: HoweStreet.com Radio

6 Comments

  • Avatar Mary says:

    Bob Hoye loses all credibility in the face of his obvious hyper partisanism. It would be helpful if he was in anyway corralled by the host but that has yet to happen. No longer a listener.

  • Avatar Denis Roch says:

    Bob Hoye. Was inflation in the 70s caused by the coming of age of the Baby Boomers. They were forming households buying houses, furniture etc. Today the Boomers are all out of boom so can inflation still take hold?

  • Avatar DAVID MESTROVIC says:

    November 3

    Bob,

    As you know, the U.S. government said our GDP surged 33% in the third quarter. The St. Louis Federal Reserve Bank reports M2 Velocity as the following:

    Q3 2020: 1.146
    Q2 2020: 1.104

    If our GDP was up by a third or 7 trillion the M2 Velocity did not reflect it. I don’t think the Fed numbers are wrong. I do think our government is producing fake financial data. No wonder the unemployment data does not add up. Do you think this part of a plan to prevent capital flight from the U.S.

  • Avatar Michael says:

    Hi Jim. Thanks so much to you and your guests for the great interviews. I have two question for Bob. It looks like the S&P is forming a “triple top”, or maybe a “quadruple top” if one includes the February high. This current market feels like that lofty summit reached in October 2007. Is a “Santa Claus Rally” still possible at these peak valuations or can we see a sharp downhill decline from here to new lows in 2021 as we saw in the late 2007 sell-off into, and through, 2008? Also: Bob, what is happening to the USD? I feel comfortably positioned in gold bullion and the USD and I’m waiting for a good pull-back in the gold miners to re-add positions. But I’m worried about King Dollar; the financial media is saying that the USD, buried under “an avalanche of debt”, will be the biggest casualty of the “Great Reset” coming soon from Davos, Switzerland. Are they right?

  • Avatar Charlie from Maine says:

    Dear Bob, I’ve been listening to you for well over 10 years now and you’ve added so much perspective to my life. I could really use your help now. With the USA looking like it’s on the road toward socialism, are there any historical examples or lessons to be learned about how long the journey takes or how soon it might be rejected?

    Thanks for all your insight and take care.

  • Avatar Chris says:

    Dear Jim,
    Please ask Bob if he can comment on the “Great Reset” and if it has any historic parallels in financial history. It seems to me that such craven political ambitions would require perpetual coercion and in today’s highly connected world would have a half life of only about one election cycle. Thank You, Chris of Rhode Island

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