Zombie Companies Threaten Equities
The recent flurry of gold-buying activity makes it seem as though investors are only now discovering the metal. But the truth is that gold has served as a prized store of value for thousands of years. One of the kings of private equity says gold’s shining prospects right now are so robust that, for the first time ever, he’s even buying it.
- Billionaire real estate mogul Sam Zell is buying gold – for the first time in his life. His bet on gold is just the latest in a string of strategic gold purchases recently made by wealthy individual investors, global asset managers and central banks. For Zell, it is gold’s anticipated supply crunch that has his attention. Noting “the amount of capital being put into new gold mines is almost nonexistent,” Zell is convinced reduced supply “is going to have a positive impact on the price.” For more, visit Yahoo! Finance.
- Simon Black of Sovereign Man says the government shutdown is, in reality, much ado about nothing. To Black, politicians arguing over $5 billion for a wall is laughable when none of them are discussing the $22 trillion national debt or Social Security’s underfunding by roughly $50 trillion. Black says the coming collapse of Social Security is the real crisis, and that the only one who ultimately can save you is YOU.
- According to Epsilon Theory’s Ben Hunt, Modern Monetary Theory (MMT) is coming to the United States. According to MMT, budget deficits aren’t a thing, because sovereign governments can print and spend as much money as they want with impunity. You could think of this as the most honest approach to unrestrained fiat currency manipulation you’ve ever heard. But in this case honest isn’t good. With MMT gaining support among elected officials, is Venezuelan-style hyperinflation far behind?
- If you think Hollywood zombies are frightening, wait till you see the zombies threatening the stock market right now. Zombie companies are those that can’t afford to service their debt, let alone pay down principal. One report says this corporate “walking dead” makes up roughly 15% of the entire S&P 1500. With interest rates now rising, zombies are poised to collapse and devour IRAs and 401(k)s heavily exposed to equities. To learn more and find out what you can do to slay the stock market zombies, read the latest blog article from Augusta.
If a billionaire thinks so much of gold right now that he’s buying it for the first time in his life, what’s holding you back? 2019 has been cited routinely as a year that will see a bull market in precious metals, with some saying silver will perform even better than the yellow metal. Is your portfolio ready to fight zombie companies and benefit from what could be a banner year for gold and silver? If you’re not sure, call Augusta Precious Metals today at 855-242-4121 and ask us about it, or visit Augustapreciousmetals.com.