Tom welcomes back Francis Hunt, Founder of “The Market Sniper” to the show.

Francis discusses the current market dynamics, opportunities in gold and crypto markets, and the prospect of an impending financial crisis. Hunt draws attention to the performance of Bitcoin compared to gold, declaring the former’s rapid growth as compelling despite its recognized risks. In light of these observations, he encourages investors to be adaptable with their strategies, hinting at the possible advantage of divesting from Bitcoin at its peak and redirecting to gold.

Hunt prognosticates 2022 as a crucial year due to the convergence of significant events including elections, halving of Bitcoin, and fluctuations in quantitative easing and tightening. Analyzing the long-term differential between 30-year and 2-year bonds, Hunt warns of an upcoming financial meltdown due to the yield curve inversion, positioning it as an almost certain harbinger of economic turmoil. He foresees a massive sell-off fueled by potential banking crises and debt markets.

Hunt further contemplates the impact of high levels of debt on the economy, using Japan’s experience as an illustrative case. He attributes the country’s economic stagnation in part to its heavy debt, a situation that resulted in the yen’s depreciation and, paradoxically, enhanced competitiveness of Japanese companies globally. Despite the immediate challenges, Hunt is optimistic about the performance of Japan’s stock market due in part to their depreciating currency and globally competitive corporations.

Turning his scrutiny to the state of the global debt market, Hunt asserts that faith in debt has dwindled, signaling the end of the 40-year bond bull market. The reluctance of banks to accept illiquid assets as collateral indicates an even bigger issue, foreshadowing elevated interest rates and an impending crisis. As the global economy edges towards a potential debt collapse, he advocates for investing in gold as a consistently safe asset. He proposes a sequence to amplify wealth: initiate with gold, then silver, and finally miners, presenting these options as a safeguard against impending economic instability. Despite his frank appraisal of the risks inherent in the current economic climate, Hunt reiterates his support for precious metals as a viable hedge against financial turbulence.

Time Stamp References:
0:00 – Introduction
0:42 – Investing Approaches
2:12 – Insider Selling
4:55 – Bitcoin in Gold Ounces
12:50 – Bitcoin Sentiment
16:16 – Bitcoin Vs. Dollar
20:45 – Volatility & Exits
21:50 – Silver Outlook
23:04 – Gold Vs. Dollar
28:22 – 2024 Outlook & Fed
32:04 – Treasury Inversion
37:30 – Cause and Effect
38:55 – Debt Implications
50:50 – Outlook For Pensions
54:50 – The Bond Market Shift
58:00 – Real Bubble is Debt
1:02:13 – Wrap Up

Talking Points From This Episode

• Bitcoin’s rapid growth compared to gold is compelling, but it comes with risks. Adaptability in investment strategies, like divesting from Bitcoin at its peak, can be advantageous.
  
• The convergence of events in 2022, like elections and Bitcoin halving, could trigger a financial crisis. Yield curve inversion suggests an imminent economic meltdown with potential banking crises.
  
• Global debt market signals the end of a 40-year bond bull market. Banks’ reluctance for illiquid assets as collateral hints at rising interest rates and a looming crisis. Invest in gold for stability.
  

Guest Links
Twitter: https://twitter.com/themarketsniper
Website: https://themarketsniper.com/
YouTube: https://www.youtube.com/user/TheMarketSniper

Francis is a trader, first and foremost. Unlike most educators in the trading space, Francis walks the walk and talks the talk, with 30 years of experience trading his personal capital on various markets and instruments. Through this passion for trading and his relentless study of markets and economic theory, he uses the Hunt Volatility Funnel trading methodology, a systemized approach, to answer the critical question: What is the next most profitable trade?

He believes the actual price of an asset is the most accurate reflection of all the factors that influence it. Practical technical analysis, the study of price action over time, is needed to formulate profitable trade ideas. Indeed, with all the market manipulation and high-frequency trading operations currently in play, technical analysis is all that can be relied upon when it comes to formulating future price trends. A trained eye can often spot such manipulative practices, as is the case with HVF traders. Therefore, the HVF methodology is based purely on technical analysis.

Francis is passionate about sharing his knowledge and understanding of markets by utilizing his HVF trading methodology. With entertaining anecdotes and the careful guidance of his students, he has already trained a large community of hundreds of traders and helped them transform from complete newbies to seasoned trading professionals.

He genuinely loves sharing his knowledge and strategies with others who are committed to finding freedom through trading. Plus, teaching strengthens his trading abilities while helping to build a vibrant community of successful traders.