Marketwatch/Shawn Langlois
This ‘anti-bubble’ investment could save your portfolio, says hedge-fund manager who’s returned 47% this year

““What we’ve seen over the last decade is the transformation from risk-free interest to interest-free risk, and what this has created is a global series of parallel synchronous bubbles,” Parilla told Bloomberg News in an interview posted on Wednesday in which he said he believes gold GC00, -0.33% could hit $5,000 an ounce within five years.

About half of his fund is invested in gold and precious metals, according to Bloomberg News, with 25% in Treasurys and the rest in a “super explosive” corner of his portfolio, which consists of options strategies set to profit from market chaos, like calls on gold and the U.S. dollar.

“What you’re going to see in the next decade is this desperate effort, which is already very obvious, where banks and government just print money and borrow, and bail everyone out, whatever it takes, just to prevent the entire system from collapsing,” Parrilla explained.

That scenario has created a bubble in fiat currency, making gold “the clear anti-bubble in this system,” he said, adding that it’s “a case of when, not if,” it moves “significantly higher.””

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Yahoo Finance/Bloomberg/Adam Haigh
Stocks Dip With China Data Showing Uneven Recovery: Markets Wrap

Stocks Dip“U.S. and European equity futures fell along with Asian stocks Thursday as investors parsed a slew of economic data in China that showed the path of economic recovery from the pandemic remains bumpy. The dollar edged higher.

Equities in China were down about 2%. Shares were also lower in Japan, South Korea, Hong Kong and Australia. S&P 500 contracts slipped after a positive Wednesday session on signs of progress in developing a vaccine for the coronavirus. Twitter Inc. fell in after-hours trading after accounts of some of America’s most prominent political and business leaders were hacked. Crude oil declined, while Treasuries edged up. The Thai baht led emerging-market currencies lower.

While the Chinese economy returned to growth in the second quarter, retail sales in June missed estimates as they continued to contract, highlighting how confidence remains fragile.”

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Kitco/Reuters
Coronavirus cost jobs at a third of small firms open in May: global Facebook survey

Coranavirus Protest“One small firm in three around the world was obliged to cut jobs to stay open through the coronavirus pandemic in May, a survey showed on Wednesday, underlining how hard the outbreak has slammed the world economy.

Some 26% of small and medium-sized businesses surveyed by Facebook (FB.O), in partnership with the Organization for Economic Cooperation and Development and the World Bank, said they had closed between January and May 2020. The survey polled more than 30,000 small business leaders from more than 50 countries.

Out of the businesses that remained operational when the survey was conducted, on May 28-31, nearly two in three cited lower sales in the previous 30 days compared with the same time a year earlier.

To deal with what the report called “the challenge of a lifetime”, a third of smaller businesses surveyed that were in operation during the poll said they had reduced their labor force.

“The COVID-19 pandemic isn’t just a public health emergency; it’s also an economic crisis that is hitting small and medium-sized businesses exceptionally hard,” according to the report.””

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Red Rock Secured/Sean Kelly
Circling the Drain?

Money Down Drain“The Drudge Report splashed the news in bright red letters across the top of the column:

Record Federal Spending and Deficit Intensifies…

It linked to a CNSNews story that reported,” The federal government set records for both the amount of money it spent and the deficit it ran in the first nine months of fiscal 2020 (October through June).”

We pay close attention to debt and spending because gold reflects instability in government finance. This gusher of red ink screams instability. It is a nine-month deficit of a heretofore unthinkable $2.744 trillion. Spending totaled more than $5 trillion in the same period.”

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