Gold Closes Above $2,000: November 2023 MACR

The USD recovery hurt stocks, bonds, and crypto. [The Rude Awakening] December 01, 2023 [WEBSITE]( | [UNSUBSCRIBE]( Gold Closes Above $2,000: November 2023 MACR [Sean Ring] SEAN RING Happy Friday, indeed! First, Kissinger snuffed it. Then gold closed above $2,000 for the first time yesterday evening. I can’t tell you how excited I am. But we must temper our excitement with good sense. Tom Luongo, the editor of the [Gold, Goats, ‘n Guns]( report, retweeted a vital talk from VBL’s Ghost: [Rude awakening] Credit: [@TFL1728]( I urge you to listen to both parts of that talk. (You’ll find the second part in the thread.) The upshot is that TPTB will still monkeyhammer gold whenever they can. “They” just can’t hold the $2,000 line anymore. Though that notion pisses on my parade somewhat, it’s absolutely correct. Let’s get long but not euphoric. So, while gold will breach the $3,000, it may take much longer than my visibly excited self would like it to. Let’s get to the rest of the charts. S&P 500 [The Rude awakening] What a month SPX has had! After a big rally from the early days of November, SPX closed the month at 4,567.80. Depending on where the market decides to rest, the next target is 4,800 for a long, soft target of 5,399. Nasdaq Composite [The Rude awakening] Much the same as the SPX. Looking now to 14,400. Above, there is the 16,000 level. Russell 2000 (Small caps) [The Rude awakening] The Russell broke back up like the majors. First, I’m looking for the 197 level, then the 205 level. The US 10-Year Yield [The Rude awakening] Jay Powell has well and truly pivoted. But he doesn’t control the long end of the yield curve. This is the market telling him the games are over. It went back to 3.5% in no time at all. Dollar Index [The Rude awakening] The Powell Pivot changed the game. How can you be a bear with EUR, GBP, and JPY taking up 81% of this basket? Just wait until he starts cutting… USG Bonds [The Rude awakening] We were close to the 80 target but won’t hit it now. Suddenly, bonds look attractive. The first level to look for is 95. Then 100. The big target is 110. Investment Grade Bonds [The Rude awakening] I got caught on a false downside breakout. After the big rebound, we’re now looking at the 109 level first. The final target, for now, is 134. High Yield Bonds [The Rude awakening] Again, I got caught on the Powell pivot. The next big target is 78. The ultimate destination is 88. Real Estate [The Rude awakening] Instead of continuing down, we reversed. Look for the 90-92 levels from here. [The Biblical Reckoning has arrived Genesis 47:15]( In his 2011 book Currency Wars… Jim Rickards issued a warning that came from the book of Genesis… One that could spell an [economic reckoning]( of biblical proportions. Now it looks like that prediction is starting to come true. And you may not have long to prepare. That’s why Jim published a major update to that warning… To tell you exactly what he recommends you do next. [And you can view it by clicking here.]( [Click Here To Learn More]( Energy: West Texas Intermediate (Oil) [The Rude awakening] Oil may be turning around from here. I suppose we didn’t get to 73… 75 is near enough. Now I’m looking up to 90. Base Metals: Copper [The Rude awakening] Though copper rallied, I’m not convinced. I am still keeping my downside targets of 3.60 and 3.30. The real economy is in bad shape. Precious Metals: Gold [The Rude awakening] Ok, we finally closed a month above $2,000. Allegedly, the sky’s the limit. But, we need to be cautiously optimistic. The new upside target in gold is $2,340. In my interview with Thorsten Polleit, he targeted $2,200 for year-end. Both can be correct. But we must see the new “line in the sand” to make more valid assumptions. Good hunting! Precious Metals: Silver [The Rude awakening] As Rick Rule says, fear drives gold. But once a gold rally is established, silver joins in as a greed trade. The upside target here is only $26.50. For now. Let gold get a head of steam going, and then silver will follow. It’ll take all your patience, but it’ll be worth it. Cryptos: Bitcoin [The Rude awakening] Ran straight through my target of $35,650. Next target: $47,000 or thereabouts. Cryptos: Ether [The Rude awakening] Nearly $2,100 now. I am looking for $2,300 on the upside. Trad Asset Class Summary [The Rude awakening] Now that the market thinks Jay Powell is finished hiking, the USD took a breather. As a result, stocks and bonds rebounded after a few down months. Oddly, though, commodities didn’t rally. That leads me to think the recession is already hurting the economy. Crypto Class Summary [The Rude awakening] Dogecoin, Ether, and Bitcoin led the way, while Bitcoin Cash (a fork - derivative - of Bitcoin) was the big loser. Ripple, Litecoin, and Monero were all relatively flat. Wrap Up Gold is the big story today. Silver will be the big story tomorrow. Crypto is a big story for the ages. Stocks and bonds are up as well. Just wait until Powell actually starts cutting rates! Finally, let’s take a moment, courtesy of the Twitterverse: [The Rude awakening] Have a wonderful weekend! All the best, [Sean Ring] Sean Ring Editor, Rude Awakening X (formerly Twitter): [@seaniechaos]( In Case You Missed It… The Wit and Wisdom of Charlie Munger: A Tribute to a Legendary Mind [Sean Ring] SEAN RING Good Morning Reader, Two days ago, the financial world lost one of its oldest and brightest stars, Charlie Munger. Known not just for his investment prowess but also for his razor-sharp wit and profound wisdom, Charlie Munger will be missed. His passing marks the end of an era. As Warren Buffett's right-hand man at Berkshire Hathaway, Munger's influence stretched far beyond the boardroom. He was a thinker, a philosopher, and a teacher with a knack for distilling complex ideas into memorable quips. Today, we remember Munger not just as an investment legend but as a man who blended humor with insight and, in doing so, made the world of finance not only more understandable but also more enjoyable. The Early Years: A Foundation of Fortitude Charlie Munger's journey began in Omaha, Nebraska, in 1924. His early years were not marked by privilege or prodigy status but by an insatiable curiosity and an indomitable spirit. Munger's path to success was far from straightforward. As a teenager, he worked at Buffett & Son, a grocery store owned by Warren Buffett's grandfather, Ernest P. Buffett. He faced numerous challenges, including serving in the U.S. Army Air Corps during World War II and overcoming personal tragedies. Yet, through it all, he maintained his signature blend of humor and perspective. He once said, “Of course, I want to know the future – I’m going to spend the rest of my life there!” This early resilience and forward-thinking mindset paved the way for his later successes. Munger and Buffett: A Meeting of Minds The partnership between Charlie Munger and Warren Buffett is legendary in finance. When these two minds met, it was less of a business partnership and more of a cerebral symphony. Munger brought a unique blend of legal insight, investment acumen, and philosophical perspective to Buffett's impressive skill set. Their collaboration transformed Berkshire Hathaway from a struggling textile mill into a global conglomerate. Munger's approach was always one of simplicity and profundity, often laced with humor. He famously remarked, “We have a passion for keeping things simple.” This approach shaped Berkshire’s strategy and made it an investment powerhouse. [Biden’s 2024 Presidential Run Doomed To Fail — Thanks To New Inflation Surge?]( Biden has given America its worst inflation crisis in over 43 years. But if you think the worst of inflation is over, think again… [A deadly new “Second Wave” of inflation is coming – one which could send the price of food, gasoline, housing and more skyrocketing much higher than they are today.]( Will this new crisis mean Biden’s 2024 Presidential run is doomed to fail? [Click here now to see my urgent warning.]( [Click Here To Learn More]( Investment Philosophy: Simple, Not Easy Munger's investment philosophy revolved around the concept of simplicity. He often preached the virtue of finding quality companies and holding onto them. His strategies were about understanding the intrinsic value of a business and its potential for long-term growth rather than short-term market fluctuations. He famously said, “The whole secret to winning big in the stock market is not to be right all the time, but to lose the least amount possible when you’re wrong.” From [CNBC]( Buffett credited Munger with broadening his investment strategy from favoring troubled companies at low prices in hopes of getting a profit to focusing on higher-quality but underpriced companies. An early example of the shift was illustrated in 1972 by Munger’s ability to persuade Buffett to sign off on Berkshire’s purchase of See’s Candies for $25 million even though the California candy maker had annual pretax earnings of only about $4 million. It has since produced more than $2 billion in sales for Berkshire. “He weaned me away from the idea of buying very so-so companies at very cheap prices, knowing that there was some small profit in it, and looking for some really wonderful businesses that we could buy in fair prices,” Buffett told CNBC in May 2016. Or as Munger put it at the 1998 Berkshire shareholder meeting: “It’s not that much fun to buy a business where you really hope this sucker liquidates before it goes broke.” This philosophy required intelligence, patience, discipline, and an almost stoic resistance to market panics. Munger's teachings influence investors, emphasizing that true investment wisdom lies in understanding the value of patience and foresight. A Life of Learning and Teaching Munger was a lifelong learner whose interests spanned multiple disciplines. His speeches often drew from a vast pool of knowledge, including psychology, history, and physics, reflecting his belief in a multidisciplinary approach to learning. He said, “I have never known any wise person who didn’t read all the time.” His passion for knowledge wasn't confined to his personal life; he actively encouraged others to embrace continuous learning. Munger's teachings extended beyond finance, touching on principles of living a fulfilling life. His commitment to education is evident in his shared wisdom, making complex concepts accessible and engaging. Humor: The Munger Way Charlie Munger's sense of humor was legendary. His ability to infuse humor into even the most mundane financial discussions was a hallmark of his character. Whether discussing market trends or corporate governance, Munger never missed an opportunity to add a touch of levity. His humorous quips were not just for laughs; they often contained pearls of wisdom. He once joked, “I try to avoid making predictions about the stock market; I don't want to know where it’s going to go; I just need to know where I'm going to go.” Munger's humor was a reminder that wisdom doesn't always have to be serious. Adversity and Resilience Charlie Munger's life was a testament to overcoming adversity. He faced numerous personal and professional challenges, but he met each with resilience and a positive attitude. His ability to maintain his sense of humor and perspective during challenging times was inspiring. He once said, “The first rule of fishing is to fish where the fish are. The same is true with investing.” This pragmatic approach to challenges and a relentless pursuit of opportunity defined Munger’s character. His resilience is a reminder that adversity is not just something to be endured but an opportunity to learn and grow. Legacy: More Than Just Wealth As we remember Charlie Munger, we celebrate the wealth he created and the legacy of wisdom he leaves behind. His contributions to finance are immense, but his impact extends far beyond. He was a teacher who believed in the power of knowledge and the importance of ethical living. His insights on investing, decision-making, and life remain invaluable lessons. He once remarked, “Show me the incentive, and I will show you the outcome.” This simple yet profound understanding of human nature and economics encapsulates the depth of Munger’s intellect and the breadth of his influence. Some of Charlie’s Famous Quotes - “The big money is not in the buying and selling, but in the waiting.” - “It's good to learn from your mistakes. It's better to learn from other people’s mistakes.” - “The first rule of compounding: Never interrupt it unnecessarily.” - “I try to get rid of people who always confidently answer questions about which they don't have any real knowledge.” - “Knowing what you don’t know is more useful than being brilliant.” - “Remember that reputation and integrity are your most valuable assets — and can be lost in a heartbeat.” - “If you’re not learning, you’re falling behind. Somebody’s always getting better.” - “It is remarkable how much long-term advantage people like us have gotten by trying to be consistently not stupid, instead of trying to be very intelligent.” - “Those who keep learning will keep rising in life.” - “The best thing a human being can do is to help another human being know more.” - “Opportunity comes to the prepared mind.” - “Show me the incentive, and I will show you the outcome.” Wrap Up: The End of an Era The passing of Charlie Munger marks the end of a remarkable chapter in the world of finance. His wisdom, humor, and unique perspective on investing and life leave an indelible mark on those privileged to know and learn from him. As we bid farewell to this giant of a man, we do so with gratitude for the lessons he imparted and the laughs he shared. In his own words, “No wise pilot, no matter how great his talent and experience, fails to use his checklist.” Charlie Munger’s checklist for life was simple: learn continuously, think independently, and approach life with a sense of humor. As we remember him, let's strive to embody these principles in our own lives. All the best, [Sean Ring] Sean Ring Contributing Editor, The Morning Reckoning feedback@dailyreckoning.com X (formerly Twitter): [@seaniechaos]( [Paradigm]( ☰ ⊗ [ARCHIVE]( [ABOUT]( [Contact Us]( © 2023 Paradigm Press, LLC. 808 Saint Paul Street, Baltimore MD 21202. By submitting your email address, you consent to Paradigm Press, LLC. delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from Rude Awakening, feel free to [click here.]( Please note: the mailbox associated with this email address is not monitored, so do not reply to this message. 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