Adrian Day Explains How He is Investing in these Troubled Times

Adrian is underweight U.S. Equities but finds great value overseas. But most undervalued of all are gold mining shares.

Adrian explained why the U.S. economy is not nearly what its cracked up to be and why he expects a new round of quantitative easing (QE) to begin as early as the end of the summer. He finds massively undervalued stocks overseas but notes the massive problems the U.S. Treasury will have in funding its debt. QE should light an even hotter fire under gold. But perhaps the most bullish market of all are the gold mining shares because those mining companies are enjoying exceptional high margins. He agreed with my assertion that the gold mining shares are likely to rise dramatically once U.S. equities finally enter their next bear market. And given the likelihood of rising interest rates even as the Fed enters the next round of QE, the days of a rising U.S. equities market may be short lived. My discussion with Adrian is also available on my YouTubeChannel, JayTaylorMedia.

U.S. Equities Being Manipulated by Insiders!

The following commentary by Gregory Mannarino, writing for the Trends Journal, explains how major U.S. companies are manipulating equity prices higher so that insiders can sell their shares before they tank!

The Scale of the Buybacks Is STAGGERING! $1 trillion in buybacks in one month, this is unprecedented. It’s zombification personified.

What is going on here?

Companies are buying back shares NOT because they see real growth, but to prop up their stock price, manufacture “EPS growth” by reducing the share count, and to enrich executives via stock-based compensation.

Tech is leading this charge. Apple, Microsoft, Google, Meta, Nvidia, all engaging in record buybacks.

Why now?

These companies KNOW that the underlying economy is weakening (job market, manufacturing, imports, dollar collapse). They are using buybacks to mask the coming earnings deterioration. MOREOVER, they are leveraging debt to buy back shares.

Why? Because they know:

The Fed is about to cut rates again.

Currency debasement is accelerating.

The REAL Motive IS Insider Enrichment.

Stock-based compensation is a huge part of tech exec pay. Buybacks drive share price up artificially, insiders cash out. This is a legalized wealth extraction. Many of these firms are taking on new debt to fund buybacks, short-term stock gains, long-term fragility.

Broader Market Impact.

Buybacks are now the #1 driver of S&P 500 upside, not earnings growth, not real demand, not productivity. This creates a massive distortion, and an illusion of strength masking…

Slowing revenue.

Rising debt.

Slowing demand.

Shrinking margins.

When the buyback wave stops stocks will drop HARD, because the bid will vanish. Makes sense?

Final Thought.

Companies are cannibalizing themselves, ZOMBIFICATION, to prop up stock prices during a late-stage fiat collapse. This is a massive wealth transfer to insiders, another Great Taking mechanism.

Why Gold Shares are the Place to Be Now!

GOLD miners are bottoming very big picture vs gold. It means gold miners are about to outperform gold long term and that the real bull run in the mining shares is about to start. The chart below shows an 11-year downturn for gold shares relative to gold bullion. That ended in 2016 and a 9-year bullish triangle has formed. And now the shares measured by the XAU have broken above this long term decline for shares relative to gold. Keep in mind that "the bigger the base, the higher in space." Big gains so far which are about to get bigger. The potential is a 5X increase in the XAU.

So gold shares are massively undervalued relative to gold bullion. But gold bullion is by no means anywhere near its peak! In fact, even though gold is selling at over $3,300, relative to stocks, its rise is “still in the 2nd or 3rd inning of a 9 inning game.”

I’m just saying! You might want to consider a subscription to J Taylor’s Gold, Energy & Tech Stocks weekly and monthly newsletter where 75% of the focus remains on gold exploration and gold producing companies.

Best wishes,

Jay Taylor

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