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February 12, 2021 | Has Money Printing Ever Stopped a Market Crash?
Bob Hoye
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.
Inflation, Interest Rates, Risky Borrowing
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Bob Hoye Archives February 12th, 2021
Posted In: HoweStreet.com Radio
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Jim, I marvel at the number of excellent commentators and interviews that you have every week on Howe Street.com. Thanks so much. I have a “short” question for Bob. Is it time to short the market, particularly the Russell 2000? My second question. The Financial Press reports that “inflation is on the way” and investors should prepare for the imminent great cyclical rotation into commodities. Uranium, agriculture and oil stocks are increasingly mentioned. Bob, if the equity markets crash this year, then will commodities crash also as they did in previous crashes?
Question for Bob:
If bond yields are at their lowest levels in history, and are expected to rise, perhaps drastically if either inflation picks up or a market crash, then how are gold and gold stocks going to do well?
Doesn’t gold decline with higher yields?? That is the explanation being given by most analysts now. How do you view this?
Do you expect high yields over the next few years, and do you expect that will still correspond to a strong gold market?
Thanks
Hi Jim and Bob. Wow, companies are now leveraging to buy Bitcoin rather than buying back their shares or re-investing in the so-called “V” recovery. The current Bitcoin mania reminds me of the movie “Gold Diggers of 1933”. The movie opens with Ginger Rogers singing: “We’re in the money / The sky is sunny / Old man Depression, you are through / You done us wrong”. Ginger further sings: “Let’s spend it / Lend it / Send it rolling along”. That part reminds me of Fed QE and the “stimulus” checks. Bob, how long can this Bitcoin mania last and can it be “the straw that breaks the camel’s back” and crash the markets?