Bloomberg/Denitsa Tsekova/6-23-2022
“In the view of JPMorgan Chase & Co. strategists, the reason why this may be the end of the bear market is that investors are holding way too much cash. Nikolaos Panigirtzoglou estimates that cash levels are close to 40%, the highest level in a decade.”
USAGOLD note 1: With all markets either in limbo or major decline, you might have been wondering where all the money garnered from the sale of various assets is ending up. Now you know. JPM’s Nikolaos Panigirtzoglou thinks we may have reached the bottom for both equities and bonds. We will see on that one. Given the magnitude of the bubble’s inflation, the magnitude of its deflation might come as a surprise to stock and bond market bulls.
USAGOLD note 2: Cash is trash, but many investors might be thinking it is better than the alternative. Of course, there are a handful of assets that haven’t been part of the everything bubble – most notably gold and silver. And perhaps that is why they are holding their own while all else is deflating under the onus of rising interest rates.
