Gerardo Del Real,
Editor
May 13, 2021
Last week, the smartest economists predicted a jobs report that would add one million new jobs.
Some of those brilliant minds predicted up to two million new jobs.
The actual number came in just below consensus at… wait for it... 266,000 new jobs.
Oops.
This morning, those same brilliant economists estimated the Producer Price Index (PPI) would come in at 0.3%. The real number was twice that at 0.6%.
Oops, they did it again.
Year over year, the PPI spiked 6.2%, the largest increase since the agency started tracking the data in 2010.
But remember it’s transitory and J&J (Janet and Jerome) are here to help. Everything is awesome!
So while economists argue amongst themselves about when inflation will arrive and how we’ll know when it’s here and whether or not it’s transitory the real story is that it’s all a mirage anyway.
Like the mirrors at the circus where the image somewhat resembles reality but distorts it for amusement... the truth is it’s all a lie.
The core PPI doesn’t even include food, energy, or trade services.
You know, the real things you need to live in the real world.
Meanwhile $365 billion was just wiped off the cryptocurrency market because Elon Musk and Tesla have decided to suspend car purchases using bitcoin because of environmental concerns.
The Dogefather said it would return to using bitcoin for transactions as soon as mining transitions to more sustainable energy.
Does anyone care to show Mr. Musk how rare earth magnets come to be?
Say what you say about the tactics, Mr. Musk is brilliant at getting media companies to generate millions in free advertising for his companies.
In a world where up is down and left is right, it can be overwhelming — especially to new speculators looking for exposure to financial assets — to decide where to allocate capital.
A 15,000% gain in Dogecoin after all is as real — if you take profits — as a gain in anything else out there.
I don't know what the future has in store for Dogecoin or the many crypto jokes that have now commanded market caps that dwarf entire sectors of essential materials...
But I do know that eventually the music stops, the circus ends, the clowns wipe away the makeup, and the lights go off.
When that happens, and it will, I’ll be comfortable knowing I’m hedged with real estate, gold, copper, uranium, and lithium exposure.
Who knows, those sectors may even get entertaining again.
Let's get it!
Gerardo Del Real
Editor, Daily Profit Cycle
For the past decade, Gerardo Del Real has worked behind-the-scenes providing research, due diligence and advice to large institutional players, fund managers, newsletter writers and some of the most active high net worth investors in the resource space. Now, he is bringing his extensive experience to the public through Daily Profit Cycle, Junior Resource Monthly, and Junior Resource Trader. For more about Gerardo, check out his editor page.
*Follow Gerardo on Twitter.