Written by Bryan Lutz, Editor at Dollarcollapse.com:
March has come and gone so fast.
Here are three Sunday Morning thoughts…
Sometimes these thoughts are on the economy, life, or hard assets.
If they’re helpful or hopeful to you, that’s great… Sometimes it just comes down to reality. That’s what I’m interested in…
So, here we go.
Here are three Sunday morning thoughts for you:
1. Afraid of the economic uncertainty to come? Take a lesson from Mike Tyson. He says, “Fear is my friend. I love fear. Fear allows me to reach my highest potential.”
Do you know what the #1 psychological trait of families who handle generational wealth successfully?
They have a healthy sense of fear.
They know how to handle fear.
How to touch it.
How to understand it.
And make it their friend.
Here’s how it starts:
Respect.
Because any time you value something.
Truly value something…
You respect the value, but…
You have to recognize it.
Instead we react to fear, uncertainty, and doubt in the markets asking, “Why, why do we have to go through this fear all the time? Why can’t it just be peaceful all the time?…”
Tyson says, “Then it wouldn’t be life…
…We have to take life on its terms. Not on our terms.”
Very motivational. I know.
But there’s a lesson to be learned there.
And this is what it is:
Living according to reality is a powerful thing, and fear can either drive us to discover that reality, or we can look for an escape.
2. Larry Lepard shared this chart correlating Global M2 growth and Bitcoin. Here’s how Gold and Bitcoin compare to M2 growth.
The Bitcoin thesis is the same as the gold bug thesis for physical gold.
Fiat money dies, then things get repriced in gold.
Here’s how it’s going so far:
Gold is pushing up with M2 growth.
Below: Gold(red), Green(M2)..
Bitcoin is pushing back up with M2 growth too.
And projected growth for M2 looks like it’s on the way up for this year and beyond.
With all this liquidity caught up in crypto, Bitcoin is bound to play a role.
3. Here’s an inconsistency to pay attention to. Usually, when the Fed floods the economy with more money the equity market goes up. However, the tech bubble seems to be popping.
M2 is growing again.
Actually, it has been for some time…
Now, it’s about to pass the high point before the Fed started raising M2 levels.
You can see in the chart below that as M2 grew from 2022 until now, the Magnificent 7 grew too.
However, since late February, and the onboarding of Donald Trump as President of the United States, those top stocks have tanked about 20% from the top.
Now they are below the trendline…
Tavi Costa shares super bearish signals here.
And the rest of the Nasdaq 100 isn’t doing much better.
In fact, Jesse Columbo shows just how far the drop has yet to go.
The tech / AI bubble seems to be popping.
Just how far it may go down is shown in the chart above.
Have a great Sunday.
