Categories: Stock Market
Topics: U.S. Dollar

Who's the next greater fool in stocks?

Publisher’s Note: Will the world’s central banks lose control of the bond market? Who's the next greater fool in stocks? What does an economic reset look like? Those are just some of the light topics we ponder in this week’s episode of Bizarro World. Check out part of the discussion below… and listen to the entire podcast where we also present solutions for the portfolio challenges — and opportunities —  we see ahead.

Enjoy!

Nick Hodge
Editor, Daily Profit Cycle


(Click to Play This Week's Episode)

 
 
 
gerardo del real
Gerardo Del Real: We had the ECB last week come out and say, "Well, we're not making big changes right now, but we have another big bazooka just in case."

Because it realizes that sooner or later the central bankers are going to lose control of the bond market. I've said this, I think since 2016, that that process takes a while to play out and develop, but you're seeing more cracks and you're seeing less control. And they're going to have to do more. The more the central bankers do, the more vulnerable the system becomes.

And eventually it breaks because history will show you fiat currencies, systems and structures... They all go through turnings. I think that's what's happening right now. And it's why I think that we're going to see continued eyes on the overall indices around the world.

 
Nick Hodge
Nick Hodge:  Well, people have more money to invest in stocks. And in the Fourth Turning you see deinstitutionalization. You’re seeing reports coming out now about how many new businesses were created last year in the pandemic, people moving away from the traditional institution of employment, creating new wealth for themselves, redefining what it means to have the nine-to-five, et cetera.  You and I are part of that to some extent.

That translates over into the stock market. With more people watching it, more people day trading, more money in the system and more people openly talking about it. I think it was a Deutsche Bank survey saying that some people planned to put as much as half their stimulus checks into the stock market.

So more people interested in stocks and then you think about the wall of worry. Who's the next greater fool? Or if you're going to run out of buyers.

But if you can print money and send it to people who can then buy stocks with it, it gets to be a clusterfuck in your mind thinking about an end game.

And that's why we come back to some sort of great reset or some sort of Bretton Woods system that you can't envision before it happens. Because it has to be accommodated at the time in the context of the market and what's happening with the debts, et cetera, and sort of difficult to forese.

But you can see some of it with the inflation of certain asset groups like we've been talking about, that are away from traditional means and modes of investment, whether that's for individuals or for retirements as you look at dollars and bonds.

 
 

 

 

Nick Hodge is the co-owner and publisher of Daily Profit Cycle and Resource Stock Digest. He's also the founder of Hodge Family Office, the umbrella organization for his three premium services: Hodge Family Office, Family Office Advantage, and Foundational Profits. He specializes in private placements and speculations in early stage ventures, and has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world.

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