The Next Crisis Will Force A Re-Invention Of The Entire Economy | Rabobank’s Michael Every (PT2)

In this Part 2 of our interview with Rabobank Global Strategist Michael Every, Michael lays out what he thinks are the biggest structural changes that will be made to the global economy once the next crisis hits.

He then warns that now, before the next crisis arrives, is a time for investors to prioritize capital preservation. He favors cash, safe havens like US Treasurys and commodities — especially productive farmland.

If you haven’t yet watched Part 1 of our interview with Michael, you can watch it here: https://youtu.be/-WyEPltVWMM

Transcript

Michael Every: You’ll probably see huge government spending supported by the Fed which will no longer be looking at the stock market but looking at the physical economy and we’re moving towards that. They can use central bank digital coins to try and accelerate that process in terms of where money flows to and to micromanage the economy which China’s already starting to do, but you do that with made in America caveats again, using maybe digital currency to understand who’s trading with who so it can’t just flow offshore. You do that behind tariff barriers. You do that alongside a spending plan where you subsidize companies to bring production home and raise wages and yeah maybe the quid pro quo of that is we don’t hang the billionaires. You get to keep what you’ve got. We’re not going to kill you but you have to make sure that everyone else now catches up.

Adam Taggart: Thanks for joining us for part two of our interview with global strategist Michael Every. If you haven’t yet watched part one of our discussion with Michael in which he predicts we’re headed into an era of great change and disruption as events will force real structural change on our leading institutions and geopolitical partnerships head over to our channel at YouTube.com/wealthion and watch it there first. It sets the context for the investment perspective that Michael and our partners at New Harbor Financial share in this video and don’t forget to support this channel by first liking this video and then clicking the red subscribe button below, as well as that little bell icon right next to it. If everyone watching right now takes these two simple steps it really does make a difference in helping this channel reach a lot more people. Okay, let’s get started watching part two of our interview with Michael Every. Alright well as we get to the latter part here of the discussion, let’s get into your market outlook. So much of what you talked about is lots of uncertainty ahead. I’m gonna put words in your mouth but I think lots of turmoil, right? We talked about the trap that the central banks are in. Really no matter what they decide they’re gonna lose. There’s gonna be negative repercussions and you’ve mentioned many times about the ridiculous levels that many asset prices have risen to and we didn’t get into this discussion but I’ve gotten into many prior ones with past experts on almost any sector of the financial markets you look at, they are trading at all-time high levels of valuation, not just prices but the valuation metrics and you look at that and you look at your predictions of what’s going to happen with the economy, what’s going to happen with blowing up geopolitical alliances and whatnot right now, it is hard to see anything other than as a soup of things that markets tend to not like so let me ask you, with your investing hat on and looking at the markets from here, what do you think is most likely to happen?

Michael Every: Okay, near term the big issue is policy error or not. Do central banks hike as curves are now pricing for or don’t they? And if they do, policy error, crash, deflation, as much as that’s possible with supply-side inflation and serious serious problems. If they don’t, more of this bitcoin idiocy for as long as it can last until eventually central banks feel they do have to do something but to be blunt what I find more interesting than that even though that in itself we’re already talking about huge upswings and downswings. What’s next? After the system has proven itself to have failed either through yet another 2008 style policy error or policy continuity but the physical economy experiencing 2008 because you just don’t have stuff relative to the supply of wealth for some individuals, what does the structure then look like and I think most of my thinking on those grounds what does political economy look like do we see monetization and modern monetary theory and central bank digital coins and helicopter drops into people’s accounts but you have to only spend it on made in America products. Do we see that behind tariff barriers? Do we see it behind some really genuine shift to make in America or making Europe and making Japan? Do we see geopolitical lashing out where people basically try and blame other people and reflate the economy through more traditional methods, shall we say, which we’ve tried on and off over the past couple of hundred years? Or do we just see complete chaos because no one’s in charge and no one’s actually able to understand what to do? Each block or each country is going to be in a different position. Europe’s ability to do things will be different to Americans, will be different to Japan’s, will be different to the UK, will be different to China, but I really and have done for about five or six years focused purely or mostly on understanding after this, what then? Because you can hedge the policy error that’s coming up. You can’t hedge what’s following.

Adam Taggart: Alright so our next hour-long interview is going into that part, so little unfair of me to ask this, but I’m going to say most of our viewers here are US viewers and if you’re from a different region of the world folks, sorry. We’ll get to that in that next hour interview with Michael but in terms of what you think is more likely to happen and I’m not going to hold you to this as an iron-clad prediction but looking at the US we have the crunch, the breakage of the system. Given that long list of possibilities that you just mentioned, which do you think are more likely?

Michael Every: The one that’s most likely to me is going to be a combination of the populist elements of Joe Biden’s policies and the populist elements of Trump’s policies. So it’s going to be a much more America-focused, America-centric make America great again but working class and hopefully ticking all the right boxes in terms of keeping everyone happy demographically focus which will be enormously disruptive to global markets that rely on the international flow of dollars and the US dollar is the freely available currency to trade everything off the back of and in terms of presumption the US will be the world’s largest importer forever and indeed the overall structure of this ridiculous system we have today where after we finish speaking I’ll go and check what other newly created assets suddenly become worth billions of dollars, all that will go up in smoke I think. That’s my logical guess based on history.

Adam Taggart: Okay. Great and let me just see if I can restate that a little bit. You tell me from restating it incorrectly. Right now we have kind of an, “anything goes,” environment here in the states and that’s allowing the people at the top to concentrate their advantage to get ahead even further. That’s why we have a quarter trillionaire right now in Elon Musk, the world’s first quarter trillionaire. It sounds like what you’re saying is it will be a bit of a return to more of a focus on the working class, which I’ve got to say after the middle class just getting completely eviscerated over the past couple decades that might not be the worst thing in the world. It might be limiting some of the upward mobility of the top echelon of folks in America. We’re already beginning to see wealth taxes proposed on billionaires and now shifting down to millionaires and ideas of Janet Yellen talking about unrealized capital gains tax which is a little crazy but it does seem a little redistributive like, “Hey we’re not going to let you guys walk away with all of the pie and we’re going to sort of forcibly try to keep enough of it on the lower classes so that it’s quote unquote, ‘fair,” and maybe that’s political speak for quote-unquote, “They’re not going to pull out the guillotine,” and hang US politicians or kill US politicians. I see you sort of nodding as I’m saying this so I’m not too far off base?

Michael Every: No, you’re absolutely right. I mean to put it in more kind of traditional macroeconomic terms, you’ll probably see huge government spending supported by the Fed which will no longer be looking at the stock market but looking at the physical economy and we’re moving towards that. They can use central bank digital coins to try and accelerate that process in terms of where money flows to and to micromanage the economy which China’s already starting to do but you do that with made in America caveats, again, using maybe digital currency to understand who’s trading with who so it can’t just flow offshore. You do that behind tariff barriers, you do that alongside a spending plan where you subsidize companies to bring production home and raise wages and yeah maybe the quid pro quo of that is we don’t hang the billionaires. We’re not going to kill you but you have to make sure that everyone else now catches up.

Adam Taggart: Yeah and is it fair to perhaps assume that along with all that spending will also come a stronger tax regime?

Michael Every: Well, I would think so because people will have to contribute. I mean corporations would have to. Ironically if you’re basically electronically creating money you don’t have to tax in the same way but it’s all about power. You have to make sure they don’t have the money to bribe the next set of politicians to reverse the policy. That’s what it really comes down to. Kill the lobbyists and you entrench the system that you want.

Adam Taggart: I just want to underscore as well that that type of vision does jive a lot with what Neil Howe was telling us is just what you sort of expect from a fourth turning. You expect to see much more centralized control and frankly, you expect to see a demand for more centralized control from the populace. So you’ve got the folks running the system wanting to take more control over it and you have the folks that they’re ruling over saying, “Yeah, we want strong leaders here at this point.” Alright so perhaps unfair of me to ask you this in the last couple of minutes here, Michael. I know you do not give financial advice, you do not manage money, but as you look and let’s say with a shorter term lens sort of towards the kind of break breakdown that you were talking about. Do you have any advice for the concerned investor who’s just trying to prudently protect their wealth maybe prudently grow it through these times ahead? Any general advice for them or are there any asset classes that you particularly think are prudent to consider owning or ones that you wouldn’t touch with a 10 foot pole?

Michael Every: Okay, let me start with the 10 foot pole because that’s where I begin more naturally. I would be very careful in terms of geographical placement and that’s got to be a product of how you actually think in terms of geopolitics. Now, people can disagree with me entirely. I’m not claiming, “I’ve got a crystal ball, I can see the future,” but think about how you think the world will look and don’t presume it’s like a flat Earth where all countries are equal. Don’t look at a chart and say, “Well that country’s equities have really underperformed for the past year, therefore they must be cheap.” There may be a reason why they’re cheap. Just because something looks different on the line, do a bit of digging into the geography and the politics and understand why that might be the case because sometimes they just diverge and they don’t come back up again. So that’s one. At the other end, you probably gotta dive in. Let me be blunt. I’m not talking my own book but I’m increasingly tempted in my own money to put 1% of my assets into complete digital crap because if there’s a digital crap ETF, 1% of your money, if that’s spread across a thousand different complete jokes, who knows? One of them might be the next Elon Musk, at which point suddenly I can afford to retire tomorrow and I’ll do these calls for pleasure rather than for any kind of financial remuneration.

Adam Taggart: That’s sort of your short term. “If you can’t beat them, join them.”

Michael Every: Yeah. Exactly, but a very, very small slice just logically but given the returns that you can get but in between that I really think, as I said to you last time we spoke on a different platform, preservation of capital I think at the moment in this kind of volatile environment is far more important than trying to think, “I can pick up an extra percentage point here or an extra couple of basis points there,” when you see how volatile things can get.

Adam Taggart: So let’s dig into that because one thing you could do is just move to cash and cash is vulnerable to inflation and so that’s one potential risk. It also raises the questions: Do you just put it all in cash in your home currency? Do you distribute amongst other currencies? When you think about capital preservation, do you think about it as just being in cash or do you think about it as sort of some of the tried and true traditional safe havens like maybe some treasuries, maybe some commodities like a precious metal or something else?

Michael Every: Food producing land.

Adam Taggart: Food producing land. Okay.

Michael Every: Land in itself, okay. But if it doesn’t actually have any water and can’t produce food, it’s a fraction of the value of land that if needs be you could grow food on for yourself or a scale. I’m not saying this because I’m a tin foil hat duct tape and shotgun kind of guy and those who know me know that I’m completely the opposite but genuinely that’s an area that’s likely to see outside returns. Whatever kind of paradigm you have going forward, even if it’s just for climactic reasons that there will be an upside to anything that can reduce food and it’s pretty simple.

Adam Taggart: Yeah, and don’t worry Michael, in my previous life here that many of these viewers of this video know me from, it’s really about resilience. It’s not about building a bunker and hiding from the world. It’s just like you were talking about with the supply chains. It’s just living with greater resilience and obviously you can go buy your own acreage and build it into a food production system on your own if you want to. A lot of people don’t have the youth, the vigor, the interest, the time to do that. I did get into many different ways in which you can invest in productive farmland in this video right here with Craig Wisner, managing director of farmland LP. So if you are interested in learning more about what solutions about like what Michael was just talking about there with investing in land that’s a good video to watch. Alright Michael, well look, as we wrap up here thank you so much for your time. It’s always such a great fascinating interview with you. We need to schedule two hours for our next interview but for folks that have really enjoyed this discussion and want to learn more about you and follow your work, where can they go?

Michael Every: Well I’m afraid my direct work is for clients only, but I do appear quite frequently on Zero Hedge usually with a 24 hour delay after I’ve written a piece but for those who can afford to wait that long, which hopefully is most people, if you google my name, Michael Every RaboBank there will normally be quite a lot that comes up.

Adam Taggart: Alright great I’ll put up the Zero Hedge URL here so folks that are interested can go there, type in Michael Every, and I think they pick up your daily almost every day, Michael. So they’ll find a lot there. I cannot thank you enough again, Michael. Really appreciate it. Really appreciate you taking the time on a busy morning, your time there in Singapore. Thank you so much and look forward to having you on the program again.

Michael Every: Thank you, me too. Thank you for the opportunity.

Adam Taggart: Okay, now is the point in the interview where we switch and talk to the lead partners at New Harbor Financial, the financial advisory firm officially endorsed by Wealthion. We’re going to react to what Michael said but also talk about what the market has done since last week’s video. John Lodra, Mike Preston, great to see you guys again.

Mike Preston: Hello Adam, nice to see you.

John Lodra: Good to be back with you again, Adam. Thanks so much.

Adam Taggart: Alright well look, another great mind, Michael Every. Just such a big thinker. Really, really helpful to get his perspective kind of looking at the macro situation being situated outside the US both in terms of some of the things he told us about the Asia market that maybe we don’t think about on a day-to-day basis being based here in the US, but also interestingly a lot of the similarities in terms of the conclusions that he’s drawing that a number of our recent guest experts have as well and guys let’s start with his commentary about how no matter what the central banks of the world do next it really is a losing proposition for them. He talked about how if they tighten, they lose. If they continue stimulating, they lose. If they just play for time and delay, they lose. He also talked about kind of the inevitability of needing to redraw the supply chains around the world and that that’s going to create a lot of disruption, at least in the near term, as those new sort of both supply lines and geopolitical alliances get redrawn that’s probably a process I’m going to guess is going to be measured in years, maybe even decades, but everything I took from what he said was to say we are staring at an era of disruption coming ahead and I think he used the word disaster. I’ll be a little nicer and say disruption, but of course that led him to saying, “I think from an investing standpoint, capital preservation is the top priority right now,” but Mike, let’s start with you. What else did you take away from Michael’s words there?

Mike Preston: Yeah let me answer first the question about the Fed is trapped. There’s a lot of different ways to say it but the Fed is trapped almost certainly. They have printed money like crazy the last 10 to 15 years. They taught the rest of the world’s central banks how to do it and exported that around the world and so we have all the major economies printing money like mad. A total of 27 trillion dollars I think since the financial crisis. It was like 16 trillion just a few years ago in 2016 and 2017. We’re up to 20-27 trillion and that’s just in assets that have been added to central bank balance sheets or money that’s been printed which has been further magnified through fractional reserve lending. It’s caused worldwide debt to go from something like 10 trillion to almost 300 trillion now, worldwide debt, and all of that is only serviceable with rates near zero. Rates go up, the whole thing is over. So everything, that entire system, relies on this plan A because there is no plan B and that’s why we think it’s kind of a crime what central banks have done. They’re certainly smart enough to know what they’re doing, we just wish they would have been more honest about it because we don’t really think that there’s a plan B. This has to work or else. The whole system needs it and we weren’t asked to vote on that or weren’t asked our opinion on it and I think that’s a real problem so we think they’re trapped, we think there’s a moment of reversion to the mean coming. I know it sounds somewhat repetitive to say similar things every week but the single most overvalued market by ways that we measure it in US history, even the shiller price earnings ratio even unadjusted is up right around 40 right now. If you adjust it for other things like profit margins it’s above 50. If you look at stock market cap the GDP the buffett indicator it’s at all time highs well over 200%. So that’s my response to, “Is the Fed backed into a corner?” Yes, absolutely and I’ll just say one or two quick things about your other talk about times of disruption and opportunity. We are almost certainly in a fourth turn and a lot of your viewers will know what that means, but it’s it’s time of maximum effort, maximum change, maximum risk, and almost certainly there’s going to be opportunities to come out of that. There’s going to be risk and danger going through that and we think the investment opportunities we’re going to probably come about elsewhere in the world, emerging Asia, maybe even Latin America emerging markets in general. That’s not to say that they’re going to be a straight line higher from here but the era of investing in the USA because it’s the cleanest dirty shirt is probably ending and there’s going to be opportunities elsewhere.

Adam Taggart: Alright yeah and Michael mentioned a little bit of that where he talked about how right now sort of China’s the 800 pound gorilla in Asia from a trading partner standpoint but that he thinks that supply lines and trading partnerships are going to get redrawn here and you’re going to have sort of these multiple centers of excellence there that he talked about and to your point, Mike, there should be some very interesting investment opportunities in those economies, those nations that are participating in those. So again, it’s not all doom and gloom. You mentioned the fourth turning and I’ll just repeat what Neil Howe said. He said it’s going to be different the way that things are going to be structured coming out of this fourth turning but that doesn’t necessarily mean worse and yes, it’s going to be a painful ride going through all that uncertainty and that disruption but it doesn’t mean that we’re heading into an armageddon period, it just means we’re heading into a new period that’s going to have a whole brand new set of opportunities there. So that’s that’s a big part of what we’re trying to do here with these videos is see what’s coming and yeah, while we may have a period where we’re going to need to batten down the hatches, we will be battening down those hatches so that we can make it through the storm and then have the potential to invest in lots of the upside that’ll hopefully come afterwards. John, let me hand it to you. Anything else to add to what Michael said?

John Lodra: Not too much. I guess the geography point that he raised about kind of geographical selection is likely to be all that much more important, we agree with that. Last number of years it’s been all about the US markets, more or less. Most global markets and emerging markets have trailed and the silver lining of that I would say is that the valuations of those kinds of geographies, especially emerging markets, are that much more attractive on a relative basis than the US market. So not to suggest that in a kind of a material sell-off in US markets that overseas and emerging markets would be immune from any kind of pullback, that’s not at all what I’m saying but aligned with those economic shifts geographically we think that the selection of investments are going to be really important. We have long favored emerging markets for these last several years relative to US stocks from a longer-term valuation standpoint we continue that. It helps that many of these countries are resource-based economies which an inflationary environment should help support those countries but just anecdotally, supply chains are on everybody’s mind. I tried to get some new brake pads for my bicycle a couple weeks ago. I got the last one in the shop and to order more the back log is out until like February, March of next year. It’s pretty crazy. But I was talking to an executive of a cosmetic manufacturing company and one of the big bottlenecks in their business has been packaging, containers and things like that and they’ve talked about an attempt to re-onshore some of that packaging that would oftentimes be outsourced or sourced from China and other overseas markets. There’s going to be big economic shifts that I think will have overtures into investment allocations.

Adam Taggart: Yeah, well let’s dig into that just for a second here because a key takeaway from the conversation with Michael is we talked at the beginning of the interview about the ridiculous dissociation right now between the financial economy and the real economy and I want to give sort of two juxtapositions. Michael and I were kind of ranting about the appreciation in shiba inu which is the knockoff coin of dogecoin which is a knockoff coin of bitcoin. I’m going to put up the headline here from an article today that appeared on Zero Hedge. It basically showed that there was an investor here who put 8k into shiba inu last year and it’s now worth five billion dollars and when you can have that kind of just mind-boggling wealth basically just cogitated out of thin air, it shows you where we are in the story where we’re literally living in a fantasy land when it comes to the pricing of financial assets these days. Now, you contrast that to the real economy where the prices of essentials are going up because we literally can’t get our hands on them right now. I mean the supply chains are breaking down and so most of the conversation that I had with Michael really was about kind of the the real economy and how it’s going to have to be redrawn and made more antifragile and all that stuff and I think back to a conversation interview I did earlier in the year with steen jacobson from saxo bank who was very big on the real economy for a number of reasons but basically because so much of our infrastructure worldwide, but especially here in the states, this agent needs to be replaced and that’s true of many countries right now so there’s increasing global competition for the resources just to rebuild our bridges and highways and ports and things like that not even forgetting about one new electrifier transportation grid and stuff like that. Also made the really interesting observation that before supply chains really broke down was that the digital economy was getting so good at selling products, Amazon and whatnot, people clicking the buy button to get a product, but it was finding itself constrained by the number of delivery trucks, delivery drivers, distribution centers, etc, where these real world physical constraints are becoming the bottleneck on the digital economy going forward so where I’m going with all this is it really does shine a bright light that investing in real things, commodities, the companies that mine them, and the companies that then transform those raw commodities into value-added products, there’s really big investment opportunity there. So John, let me let you just react to that and then Mike, I’m going to ask you about what the markets have done over the past week.

John Lodra: Yep, real things. The inflation we’re seeing there we don’t think is a mistake. There’s the disjointed supply chains but yeah, I mean anytime you kind of make an imbalance of supply and demand and certainly there’s lots of stimulus sloshing around out there still that is stressed from a demand standpoint, the supply chains, but many times people think of tangible assets and they think of real estate. Real estate can be a great place. Michael I think nicely talks about land with productive food growing capabilities as being a good place. We totally agree with that and certainly land but with that income and inflation hedging capability, not to mention to be able to feed human beings, is a really important place to be. I will caution however that many forms of real estate are in their own bubble-like states. Making the news this week is that the median home price in this country surpassed four hundred thousand dollars for the first time ever and I think the year over year increase so far is a record or certainly a record in any recent year so we we’ve seen massive appreciation just in the last quarter I think it was up like 13% nationally. So we’ve had this massive ramp up in home prices which obviously is kind of important to humans to be able to find shelter and this this of course ties back into the notion that the federal reserve is entrapped because to let these kinds of things run further amok just means squeezing everyday people eat more and more yet the antidote to that is to raise interest rates and withdraw some of the stimulus and when you have a economy everything from households to corporations to governments as indebted as they are right now, the system almost can’t withstand that, so there’s no good choices here.

Adam Taggart: Yeah, no good choices and it’s on so many different dimensions. Just hearing you talk there, John, was thinking that the Fed, on one hand it’s damned because if it were to raise rates it would greater asset prices crash the system make everybody angry but particularly make sort of the oligarch class that the Fed sort of responds to incredibly angry at the Fed, so all that political pressure, but of course if it continues to let inflation run hot you get to the point where you have a critical mass of just the public, the masses themselves, getting to a point where they can’t take it anymore and start rising up. So it’s almost like what’s worse for those guys, the punishing power of the oligarchs, the punishing power of the public masses? I don’t know but it just seems like, again, no matter which road this goes down there’s gonna be a reckoning for them and sadly we’re all gonna be the collateral damage of that. Alright Mike, let me move over to you. Let’s talk about what the markets have done since last week. Let’s talk about the major indices in general and then we can talk about a couple specific asset classes like gold, crypto, and a few others.

Mike Preston: Yeah it’s just a story of all time highs, really. Just about everywhere continually. The S&P sitting here right around 2600. It had a 4% or so pull back and just in a matter of days over the last week or a little more than a week it went right back to its all-time high and the trend has been relentless to say the least. The tech stocks, the fang stocks have been a big part of that. There’s a lot of days where breadth is negative, there’s actually more decliners than advancers and yet the indices are up quite a bit and it’s just the strong stocks, Microsoft, Google. Apple and Amazon both report tonight but by and large the reports have been greeted very very favorably and these stocks have been breaking out and of course is the poster child stocks like Tesla, which added another 150-160 billion dollars the other day on news from a rental car company and these stocks are just moving gargantuan amounts based on the fundamental news related to them and you were talking about that crypto earlier, how an eight thousand dollar investment is now worth five billion. Nothing really seems to mean anything anymore at the moment that we are in a mania, we’re convinced of it, but certainly it feels interminable like it’s never going to end. We feel very strongly that it will. So the S&P is there. You’re at all-time highs. The breath and the internals are not good, yet the market is there based on the strength of a few stocks. Volatility is that multi-month lows. The volatility index is down at 15 or 16, hasn’t been there in many months. That’s at that year lows. Lastly, I think we should probably talk about gold and silver. I mean if you look at the charts of gold and silver, gold particularly to me right now Is one of the few things, as frustrating as it is, that has not gone vertical and gold is in this long sideways triangle shape consolidation going back to August of 2020. Going on almost a year and a half a big consolidation it looks to us like it wants to break out to the upside. There’s been two tries to break out to the downside in recent months, looks like it wants to break to the upside. 1800 right now on gold, would project to around 2500 if it broke out to the upside out of that triangle just on basic projection from technical analysis. Obviously that’s not a guarantee but there’s nothing really to buy here today that has any same value attached to it other than maybe some gold, silver, some select foreign markets or emerging markets, base metals, commodity type place. So heavy cash and exposed to those areas is what we think continues to make sense. So we’ll watch and wait.

Adam Taggart: Alright, well said. Just to build on that a tiny bit I guess I do want to give props to David Hunter who we’ve had on this program and he’s had the most courageous, some would say outrageous, predictions over the course of the year, but many of them have been coming true and David has has very publicly said he expects this latest secular bull market to end end of this year, beginning of next year and to end with a epic blow off top, just an epic mania, and I think to your points there Mike is could very well what we’re seeing here right now and I think back to the famous Mckay book on the madness of crowds where men go mad in herds and that’s what you see at the end of every bubble market where everybody rushes in, everybody throws caution to the wind and that’s when you get a tulip bulb that sells for more than the most expensive building in Amsterdam or you get a shiba inu coin, that investment that goes to five billion dollars or whatever, but we do seem to be seeing Hunter’s prediction playing out here. You mentioned the S&P at an all-time high and you mentioned Vix at series low. I just want to put up this chart really briefly I put in my recent video on stagflation. It’s a chart that was put up by Sven Henrich that shows that the Vix to S&P ratio has never been lower and that again, just shows an all-time high in market complacency, which is exactly the kind of extreme you would see before you have some sort of violent correction in the market so again, not saying that that indeed is going to happen next but we’re seeing all the hallmarks of the potential for that happening and then last, I just want to mention, Mike, you talked about the precious metals being still one of the attractively valued sectors out there. Just released a video yesterday from Jeff Clark. It’s an hour presentation going through his top picks for the precious metals mining stocks that he thinks would perform the best. He’s talking like 10-bagger, 20-bagger returns. Should we indeed have a catch-up phase here in the precious metals where their appreciation catches up to the type of appreciation that we’ve seen in other commodities this year? So folks, if you haven’t seen that go to Wealthion.com/clark and you can watch it there for free. Alright John, I’ll let you have the last word here as we wrap things up for this week. Any parting words of advice for today’s viewers?

John Lodra: Just to not lose sight of where we likely are in a cycle. I’ll reference back like you just did, Adam, to the video that David Hunter did with you a few weeks back. Our message there was, and I think his as well, is his his call for a near-term melt-up wasn’t a call to say, “Hey, everybody should be plowing their money in the stock market,” because he did call for up to an 80% meltdown after that and our point in that was just to understand what that kind of move likely represent and what it likely will do to one’s psychology and to be in control and aware of that, to not get sucked in, because the likelihood of getting sucked in and getting out successfully is very low, but instead to use that as almost fortification to say, “Hey, I know what this is all about. It’s craziness and I’m going to be strong and I’m not going to let myself get sucked into the craziness because I know that very high likelihood there’ll be much better times, much safer times ahead to be investing like a true investor and not a panicked fomo anguished investor that these markets are making everybody want to be,” and it’s not to point the finger in anybody these are very difficult emotions to wrestle with that’s why so many people get sucked in.

Adam Taggart: Yep, and that’s why we are so emphatic in recommending that people work with a professional financial advisor when it comes to managing their financial portfolios given the current era to work with a professional who can take the emotion out of your decision-making process and if you’re a new viewer here you heard Michael say focus on capital preservation going forward. You’ve heard what Mike and John here have had to say. If you have a good financial advisor to be your guide through the type of future that’s coming, great. Stick with them. But if not, Mike and John and their team at New Harbor offer free portfolio consultations where they’ll sit down with you, they’ll look at your current allocation, they’ll look at your goals, they’ll look at what they think the future holds, and they’ll just tell you what they think you should do and you can do whatever you want with that. You can implement it yourself, you can implement it with your existing advisor, or if you decide you might want to work with these guys there’s the opportunity to do that but there is no commitment to do that for having these free consultations. If you’d be interested in having one stick around at the end of the video, we tell you how to schedule one. It only takes you a couple of seconds to do so. Alright, if you want to see continued great interviews like this with folks like Michael Every and the other great guest experts we’ve had on this channel, please help support this channel by hitting the like button first and then clicking the subscribe button below, as well as that little bell icon right next to it and if you’d like to see which guest experts we have coming on this program in the near future or even better suggest ones that you’d like to see just follow me online at @MenloBear. I do look at every suggestion that people make there. Alright John and Mike, well another great week and whatever the markets do from here we’ll be tracking it together on this program. I’ll see you guys next week. Everybody else, thanks for watching.

Mike Preston: We’ll see you soon.

John Lodra: We’ll see you next week.

Adam Taggart: If you’d like to schedule a consultation with one of the financial advisors at New Harbor Financial simply go to Wealthion.com. These consultations are completely free and there are no strings attached. The good folks at New Harbor will simply answer any questions you have about your investment goals or your portfolio and give you their best advice given their latest market outlook. They’re willing to do this because they care about protecting people’s wealth and because Wealthion has connected them with so many thoughtful investors just like you over the past decade. We started doing this because so many people have approached us in frustration looking for a solution because they’re feeling out of alignment or downright ridiculed by the standard financial advisors who have been managing their money. You know the type. The kind that just pushes all of your money into the market, scoffs at the idea of owning gold, and when you bring up concerns about the market’s sky-high valuations they say, “Don’t worry. The market will always take care of you.” For many of the reasons discussed in today’s video we think this is one of the most challenging and treacherous times in history for investing. We strongly believe that today’s investors are best served working in partnership with a conscientious professional financial advisor who understands the risks in play. Now, we’re agnostic which professional advisor you work with as long as they’re good. If you’re already working with one, that’s fantastic. Stick with them. But if you don’t or are having trouble finding one you respect or trust then consider talking to John and Mike and the team at New Harbor. Now, for those about to ask, yes. There’s a business relationship between Wealthion and New Harbor which we’ve put in place to make sure everything is handled according to SEC regulations. All the details on this are clearly provided on the Wealthion.com website. Also, it’s important to note that New Harbor is able to work with US citizens, green card holders, and those with existing assets in the USA but for regulatory reasons they aren’t able to take on non-US clients. Alright, with all that said if you’d like some insight and guidance on how to protect your wealth during this unprecedented time in the markets go to Wealthion.com to schedule your free consultation with the good folks at New Harbor. Thanks for watching.

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