If you look at the performance since 2008 of iShares MSCI ACWI ex US ETF (ACWX) vs. the NASDAQ Composite and S&P 500 it proves that U.S. equities are the biggest bubble in world history.
ACWX tracks the investment results of an index composed of large- and mid-capitalization non-U.S. equities. It tracks the rest of the world's stock markets excluding U.S. listed stocks.
Since February 4, 2008, the NASDAQ has gained by 509.59%, the S&P 500 has gained by 240.83%, and ACWX has declined by 3.66%.
There are several main reasons for this...
1) A big rally in the U.S. Dollar Index (DXY) during this time period. Back on February 4, 2008, the U.S. Dollar Index (DXY) was 76.67 vs. today the DXY is 101.34. Although the DXY bounced today, the DXY's trend is downward after peaking in October 2022 at 113.23.
2) A massive bubble in U.S. technology stocks alongside a simultaneous passive investing/index fund bubble, which has concentrated a large portion of the world's wealth into six U.S. technology companies trading at impossible to justify valuations: Apple (AAPL), Microsoft (MSFT), Alphabet (GOOG), Amazon.com (AMZN), Nvidia (NVDA), and Tesla (TSLA).
3) Undervalued commodity prices. The commodities to equity ratio is at a 50-year low. Global equity markets are much more tied to commodity prices than U.S. equity markets.
The bottom line is... don't allow recency bias to affect your investment decisions. The best performing stocks since 2008 will not continue to lead. The Big 6 tech stocks could lose 50% of their value and would still be extremely overvalued.
The U.S. Dollar Index (DXY) will eventually return to its 2008 lows. When it does gold will already be $5,000+ per oz.
Buying the most hated stocks in the market is a simple strategy that always works. Gold stocks, especially gold exploration stocks that are too small for multi-billion-dollar institutions to invest in, are the most hated stocks in the market.
The only way to achieve 1,000%-5,000% returns in the years ahead is to buy the gold exploration stocks that are most likely to either: 1) Make massive new gold discoveries, 2) Achieve successful development of their gold projects into newly producing gold mines, 3) Get bought out at 10-50X their current share price.
Don't let Peter Schiff brainwash you into buying foreign gold stocks in high-risk jurisdictions. Many investors lost their life savings when Hugo Chavez stole all of Venezuela's gold mines, but then realized he had no experience on how to successfully operate a gold mine. At least for Rusoro Mining (TSXV: RML) shareholders, they are about to get back as much as US$1.76 billion in cash. We have been following the RML situation for many years and as soon as we saw any signs of possible asset recovery we immediately suggested RML last year at $0.05 per share. So far, NIA members are up by 610%, with RML closing today at $0.355 per share. We know for a fact that a settlement is being negotiated right now that could easily send RML to $1+ per share in the upcoming weeks. Although there is no guarantee that this settlement will be finalized, the alternative means Citgo gets auctioned and RML recovers the full US$1.76 billion sending RML to $3+ per share within twelve months.
Our largest percentage gainers will be the Nevada based gold exploration stocks that we are 100% convinced will be trading 1,000%-5,000% higher in the not-too-distant future. There are no other stocks in the market that offer this type of massive upside and very limited downside. We are almost always proven right.
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. This message is not a solicitation or recommendation to buy, sell, or hold securities. This message is meant for informational and educational purposes only and does not provide investment advice.
Preparing Americans for Hyperinflation
