Summary
Insiders are selling stocks and central banks are accumulating gold, indicating a potential market downturn and financial instability as 2025 approaches.
Economic Outlook and Market Trends
Central banks are accumulating physical gold at an unprecedented rate, with recent numbers twice the 12-month moving average, indicating a significant shift in monetary strategy and potential loss of faith in fiat currencies.
Insider stock selling has reached a 6:1 ratio of sellers to buyers, while Warren Buffett holds $40+ billion in cash, suggesting a bearish outlook among market insiders despite public optimism.
A potential 2025 downturn resembling the 1929 Great Depression is forecasted, with experts warning of a system-wide insolvency and a “great taking” that could leave many with nothing.
Global Financial Dynamics
The banking system is attempting to de-risk but remains vulnerable to collapse due to debt saturation and credit bubbles, with the potential for widespread business failures and bank collapses leading to a credit contraction.
In 2024, gold rose 26-27% while money supply increased only 3%, indicating declining faith in the dollar and positioning gold as a tangible asset to hedge against currency devaluation.
China, Saudi Arabia, and India are accumulating gold through various means, including direct purchases from miners and use of sovereign wealth funds, often exceeding reported figures.
Future Economic Challenges
Rising bond yields in 2025 are expected to crash equities and make mortgage costs unaffordable, potentially undermining residential property as collateral and triggering a housing market crisis.
The US faces potential financial instability with a record $584 billion spending in October and November 2024, while the Fed’s efforts to stabilize the system may “kill the dollar” as foreigners become reluctant to fund the US deficit at higher interest rates.