Hong Kong stocks have just hit a new all-time low priced in gold.
Why are Chinese and Hong Kong investors buying record amounts of gold?
Take a look at a chart of the iShares MSCI Hong Kong Index (EWH)/Gold ratio:
Americans live in a bubble and believe the S&P 500 and NASDAQ will go up forever and it is impossible for the U.S. to experience a recession like China.
CNBC just said that worst case scenario U.S. technology stocks could decline by 10% but you should be ready to buy more technology stocks if they dip by 5% because a decline of 10% is unlikely.
The average American has no investment exposure to gold. Americans are clueless as to how extraordinarily overvalued U.S. equity markets are vs. the rest of the world.
When Augusta Gold (TSX: G) surpasses $5 per share this summer, Americans will finally start to allocate capital to gold stocks.
Past performance is not an indicator of future returns. NIA is not an investment advisor and does not provide investment advice. Always do your own research and make your own investment decisions. NIA's President has purchased 224,200 shares of G in the open market and intends to buy more shares. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
