Written by Bryan Lutz, Editor at Dollarcollapse.com:
I hope you’re having a restful Sunday.
Here’s what we do.
Every Sunday I share a few thoughts with you, and other subscribers at Dollar Collapse.
Sometimes we’ll talk about economics, sometimes recent events, and other times, life.
Here are three thoughts for this morning:
1. Gold is heading toward a big setup. Despite Fed interest rate fears, it’s only a matter of time.
Take a look at the gold chart.
Gold ran from $3,313 to $5,318 in five months. A 60% move. A jump that steep and that fast is what chartists call a flagpole, which can be a setup for what comes later.
What followed was the correction. Five and a half months of lower highs. New lows this week at $4,022. The Fed rate crowd calls it the top.
It isn’t. I don’t think it is. The fundamentals for gold are all still there when you look at debt, deficits, and interest expenses.
On the technical side, big flagpoles need big bases, and this one isn’t finished. The line to watch sits near $4,161. Reclaim it, and the descending resistance breaks with it.
Rate fears may move gold’s price for a quarter, but debt, deficits, and a Treasury with no exit move it for a decade.
The setup is forming. It’s only a matter of time before gold shoots back up again.
2. I’m still thinking more about water. Water Utilities can be excellent income stocks.
Take York Water (YORW).
It’s been paying a dividend since 1816…
For 210 years without missing a single payment, through the Civil War, the Depression, and every Fed experiment since.
29 straight years of raises, and at about $30 a share it sports the highest yield of the pure-play water utilities at 2.96%.
It’s affordable too, around 19x forward earnings, and the cheapest of those available in the US.
And the price mostly just sits there… which is exactly what you want from an income stock.
Now, the risks.
If rates rise, these bond-proxy stocks fall, and YORW dropped 40% from its 2021 peak while the dividend kept growing.
It’s also thinly traded, so some might limit orders.
However, this is one, in my opinion, you buy for the check, and not the chart.
3. Graham’s death might mark the start of a sudden decline in America’s Gerontocracy, but it is really a symptom of something deeper. When it comes to it, the politicians will always vote to save themselves and their generation.
Lindsey Graham is dead at 71.
Washington lost another lifer this week.
But Connor O’Keeffe over at Mises saw the bigger story first, old politicians aren’t the real problem. They’re just the part you can see.
Like Connor explains, the whole system is built to move money from the young to the old, one Social Security check at a time.
So the social security check you may be receiving, or others may be receiving isn’t your own savings coming back. Your kids’ paycheck is flipping the bill, taxed today…
Graham sat in the Senate for 30 years while the money printer went brrrr… and the need for more earners grew day-by-day. All this while regular folks like you and I have gotten stuck with the tab.
So when the bill comes due, no Senator is going to save you.
They’ll just print more.
That’s why we hold gold.
Have a great Sunday.
