3 Sunday Morning Thoughts – November 16 Edition

Written by Bryan Lutz, Editor at Dollarcollapse.com:

Every Sunday morning I sit down to write a few thoughts.

Sometimes these thoughts end up being about life, other times they are on gold, geopolitical issues affecting the markets, or the economy.

Here are three thoughts for this morning:

1. Everything is moving down right now. Here’s why.

Despite two recent interest rate cuts by the Federal Reserve, the “S&P 500 is on track for its worst November since 2008.”

Almost everything is headed down except for oil.

That being said, we shouldn’t act like this is a surprise.

Here’s why…

US stock valuations have never, ever, been higher.

Even at the peak of WWII, when the US government printed money to kingdom come, stocks have never been this overvalued. So, let yourself breathe a little.

Remember, fiat money is inflationary. Before the government goes into massive money printing mode, stocks will continue to rise.

2. D is for Delinquencies. What isn’t rising?

Delinquencies on credit loans are rising. In almost every other sector, too.

Specifically, more people are letting their credit cards rollover each month. Letting themselves forget about it doesn’t seem to be solving the problem… but I’m sure no ones forgetting about it. Debt always looms in the back of many peoples mind.

Of course there are other needs, like paying for a car. Everyone needs to get to work. Subprime delinquencies keep going up. These are the junk loans given out at high interest rates. Bankers know the loans are high risk. They’re also hoping for the high reward. That’s because interest rates on sub-prime loans are usually pretty high.

Many youngsters who were hoping to watch their massive student loans vaporize under Biden are now feeling the pinch.

Delinquincies are rising everywhere.

So… there’s that.

3. I’m not one for superstition but, here’s an interesting omen. Is gold’s value coming sooner than we think?

The Titanic sunk in 1913.

It was the same year the Federal Reserve was created. It was also the beginning of the end for gold’s recognized value.

That’s when the government began to forget. When they decided to make the people forget. Only a few years later, FDR would laid claim to every American’s gold for the next four decades.

Until recently, very few people have valued gold.

OK, I have to preface this, I’m not superstitious, but this is an interesting omen…

A rare gold pocket was recovered from one of the richest passengers aboard the Titanic.

NY Post reports:

Titanic passenger’s rare gold pocket watch could become priciest artifact ever sold

“A gold pocket watch recovered from one of the richest passengers aboard the Titanic may become the most expensive artifact from the tragedy ever sold, according to experts.

The watch belonged to Isidor Straus, co-owner of Macy’s department store, who was aboard the ill-fated ship in April 1912, along with his wife, Ida Straus. 

The couple were returning to New York from a trip to Europe.

“One account stated they were last seen sitting on the deck arm in arm, although in [the film] ‘Titanic’ they were depicted lying side by side on the bed in their stateroom,” according to auctioneer Andrew Aldridge.

Ida Straus did not want to abandon her husband — and famously refused a spot in a lifeboat, preferring instead to remain by his side. 

“My place is with you,” she reportedly told him. “I have lived with you. I love you, and, if necessary, I shall die with you.”

Aside from the classic, tragic love story aboard the Titanic, the omen is there…

The value of gold in any form may become pricier than we ever anticipated.

Maybe sooner than we think.