Gerardo Del Real,
Editor
May 21, 2025
I hate writing these types of editorials because I don’t do so with any joy for what I sincerely believe is to come. I actually hope I’m wrong and that math continues to not matter for a while.
I fear that won’t be the case. And I fear that, in the next 12-18 months, this may end up being one of the most important pieces I’ve ever written.
Back in 1994, Bill Clinton was riding a wave of support among his base, leveraging his youth, charisma, and his ability to tell a story. Heck, he was even popular with the girls… but I digress.
Much like today, but to a lesser degree, the bond market started dictating where the administration needed to focus its attention. Government spending was out of control after getting dragged into an unnecessary war in Iraq (sound familiar?).
The reaction took the 10-yr Treasury from 5.2% (sound familiar?) to over 8% in a 12-month period.
Unlike this administration, it shifted its focus to deficit reduction with target measures that included a combination of tax increases and spending cuts, including reductions in entitlement spending.
The measures were successful and the markets stabilized.
James Carville, a political advisor to Clinton, famously said, “I used to think that if there was reincarnation, I wanted to come back as the president or the pope or as a .400 baseball hitter. But now, I would like to come back as the bond market. You can intimidate everybody.”
Fast forward to 2025, and the bond vigilantes are back and out for blood.
Mortgage rates are back above 7%, auto loans are crossing 10%, and credit card rates are above 20%. The 10-yr is approaching 5%, the 30-yr is already there, and the reaction by this administration is to provide tax cuts to the rich and add trillions to the deficit.
Spoiler alert. We either get a severe about-face policy-wise or we end up with a severe market dislocation over the next 12 months.
There is no getting around it. And to be clear, both sides of the aisle are to blame for years of fiscal and monetary abuse at the expense of the majority of the citizenry and to the benefit of asset owners.
The bond market is the single most important indicator of what’s to come. There will be signs. Higher gold prices. Higher Bitcoin prices. Higher prices on hard assets that you just can’t print out of thin air because the value of what’s being printed will continue to erode until there’s a reset.
A Bretton Woods-type reset for the modern age… it is indeed “The Golden Age” just not the kind a lot of people are hoping for.
I’ve positioned myself, family, friends, and subscribers to profit from what’s coming and will be vigilant in protecting those gains over the next several months and years.
I hope you’ll join me as several Junior Resource Speculator companies are now at the most exciting inflection point in an explorer’s trajectory. We’ll talk more about it in this week’s Speculator Session.
Summer is approaching, drills are turning, gold, silver, and copper are headed higher… and opportunity awaits.
It won’t be a straight move higher in gold, Bitcoin, silver, etc., but with the right guidance and positioning, you can do very well before the Great Reset.
Junior Resource Speculator, Junior Resource Monthly, and Private Placement Intel are each services with a unique approach to the market. Chris Curl’s Crypto Cycle has already guided crypto speculators through multiple volatile downturns.
Get positioned now.
Let’s get it!
Gerardo Del Real
Editor, Daily Profit Cycle