By Bilal Hafeez 15-11-2019

With Mike Shedlock, Author of “MishTalk” (Hedgeye)

(52 min listen)


Summary (You can listen to the podcast by clicking here)

• Mike “Mish” Shedlock is one of our top bloggers of 2019, so he is well worth listening to. In this podcast, he opines on several controversial topics.

• First, Shedlock explains his belief in holding gold in the long-term. He sees gold as a measure of faith in central banks, rather than just inflation hedge. He cites various historic policy errors and argues the case for the gold standard.

• Second, he discusses bubbles in European bonds, global equity markets and the US housing market. He sees an overpriced US stock market as a harbinger of a possible recession.

• Then on politics, he argues Trump lacks the right tactics on trade policy and is influencing monetary policy. He makes the case for Trump defeating Warren in the 2020 election.

• Finally, on US monetary policy, he sees the Fed itching to return to hiking rates, not least because of the failure of low rates to work in Europe.

 

Why does this matter? Shedlock is clearly not a fan of ultra-easy monetary policy. His support of the gold standard may be too dogmatic, but he’s right on the possibility of bubbles forming today. He’s not alone in being bullish gold which may be the right hedge in the world we are in.

 

(The commentary contained in the above article does not constitute an offer or a solicitation, or a recommendation to implement or liquidate an investment or to carry out any other transaction. It should not be used as a basis for any investment decision or other decision. Any investment decision should be based on appropriate professional advice specific to your needs.)