“Bad and Long Depression” 


Dear Rundown Reader,

“As a retired RN, I have to say I am shocked and disgusted by the carelessness of those who are protesting shutdowns,” our first contributor says.

“Do they really want to die just to prove a point? Or maybe they just want the freedom to bring home an incurable death sentence to their families? All it takes is for an infected person to cough in your general vicinity… and you’re done.”

We don’t believe the statistics show it’s lights out for everyone infected with the coronavirus. (More on that Monday.) But we understand your indictment of “carelessness.”

“I am 55-years old with health issues,” says another reader, “and I too only go out for food and meds. But I think if we don’t open up our country soon, we won’t just have a recession but a very bad and long depression.”

We share your concerns.

For our final opinion today…

“It seems the day after the stimulus bill was signed big companies had their money. Yet the little guys were still — and many still are — trying to figure out the paperwork. How can this be?”

Is bureaucracy at play here or something more sinister?

Send your opinions to, TheRundownFeedback@SevenFigurePublishing.com.

Your Rundown for Friday, May 8, 2020

Gold (80% of the Time)

Prompted by the coronavirus pandemic, the federal government is on a borrowing spree; to give you an idea, the fiscal deficit is pegged at almost $4 trillion in 2020.

“What thrives in massive upside changes to Treasury debt outstanding?” asks Jeff deGraaf of Renaissance Macro. He answers his own (rhetorical) question: “Gold, of course.”

And take a look at the two charts below — gold up top and U.S. Treasury debt outstanding below…

RenMac

DeGraaf points out the approximate synchronicity between outstanding Treasury debt (YoY) and gold returns.

“The chart shows the average six-month forward return for gold when… growth in debt issuance hits the 90th percentile is 13%,” MarketWatch says, “with the yellow metal rising 79% of the time… going back to 1984.”

Mr. deGraaf concludes: “This data, and the trend, continue to support our call on gold as an asset class.” Legitimate asset class, we might add.

Market Rundown for Friday, May 8, 2020

The S&P 500 Index is up 33 points to 2,915.

Oil is 2.3% to $24.15 for a barrel of West Texas crude.

Gold’s $1.80 to $1,724 per ounce.

Bitcoin is down $89.33 to $9,899.46.

Send your comments and questions to, TheRundownFeedback@SevenFigurePublishing.com.

Have a happy Mother’s Day weekend! We’ll catch up Monday.

For the Rundown,

Aaron Gentzler

Aaron Gentzler

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Aaron Gentzler

Aaron Gentzler is the publisher of Seven Figure Publishing. He is also the editor of The Rundown and has been with Agora Financial / Seven Figure Publishing since 2005. He's been covering technology and markets for over a decade.

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