Warning: the Smart Money and the Smartest Money Both Smell Inflation
By: Graham Summers
GoldSeek.com
Thursday, 11 January 2018
If you want to make money investing, you first need to understand the structure of the asset classes in our current financial system.
Everyone likes to go bonkers over stocks, but the reality is that the stock market is in fact one of the smallest and least liquid markets on the planet. All told, US stocks are roughly $26 trillion in market cap.
By way of contrast, the US debt markets (Treasuries, corporate, municipal, local, etc.) is well north of $60 trillion.
And the currency markets (which cannot be accurately measured because every trade involves a currency pair) trades over $5 trillion per day.
Put simply, currencies are the “smartest” money, followed by bonds, and then finally stocks. So when a seismic change takes place, currencies and bonds pick up on it LONG before stocks do.
With that in mind consider that the $USD is collapsing, having gone almost straight down for 12 months.
The Rest…HERE
