Tom welcomes returning guest Peter Grandich from Peter Grandich and Company for a discussion on current economic risks and market trends. Grandich expresses concern over the markets’ failure to acknowledge major issues. He argues that gold markets show some recognition of these issues, while the stock market remains complacent. With experience through three financial crises, Grandich warns that this situation is more severe due to political division and lack of meaningful solutions from Congress or the Fed. He criticizes the Fed’s role in exacerbating debt through money creation during the pandemic.

Peter discusses societal shifts towards consuming beyond means and their impact on happiness, the stock market, and the economy. He traces these trends to the influence of television and the internet, which have convinced people that they need more money for happiness. They note that some of the happiest people have little or no wealth while some wealthy individuals are unhappy. He criticize politicians’ approach to economics compared to household management, resulting in societal issues like increasing consumer debt and a culture of living beyond it’s means.

Grandich discusses potential risks to the markets, including political instability leading up to the U.S. election and the impact on foreign investors divesting from American securities. He emphasizes gold’s importance as a store of value in the new economic structure and advocates for capital preservation due to perceived market overvaluation. Grandich encourages individuals to build a “financial ark” through self-sufficiency, preparing for potential financial hardships, and diversifying portfolios with stocks, bonds, and gold. He also mentions the junior resource market as an area of potential undervaluation for companies searching for metals and base metals.

Time Stamp References:
0:00 – Introduction
0:31 – Markets & Uncertainty
2:12 – Fixing Things & Politics
5:40 – Exponential Debt Crises
8:30 – Mass Media & Marketing
10:57 – Historic Comparisons
13:55 – Fed Perception/Reality
16:58 – Dot Plots & Fed Cuts
19:26 – Political Turmoil Risk
23:59 – BRICS Alliance & Gold
28:20 – Building a Financial Ark
32:19 – Defining Bubbles
35:56 – Anti-Bubble Opportunities
38:52 – Thoughts on Uranium
41:27 – Base Metals & Miners
46:35 – Crash Scenarios & Gold
49:20 – Wrap Up

Talking Points From This Episode

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• Economic risks include political instability before the U.S. election and market complacency. Gold is seen as a safe store of value.
  
• Societal shifts towards consuming beyond means impact happiness, debt levels, and stock markets.
  
• Political division, lack of meaningful solutions from Congress or the Fed exacerbate economic concerns.
  

Guest Links:
Website: https://petergrandich.com
Twitter: https://twitter.com/PeterGrandich

Peter Grandich entered Wall Street in the mid-1980s with neither formal education nor training. Within three years, he was appointed Head of Investment Strategy for a leading New York Stock Exchange member firm. He would hold positions as Chief Market Strategist, Portfolio Manager for four hedge funds, and a mutual fund that bore his name. His abilities have resulted in hundreds of media interviews, including Good Morning America, Fox News, CNBC, Wall Street Journal, Barron’s, Financial Post, Globe and Mail, US News & World Report, New York Times, Business Week, MarketWatch, Business News Network and dozens more. In addition, he has spoken at investment conferences worldwide, edited numerous investment newsletters, and was one of the more sought-after financial commentators.

Grandich has been a member of the National Association of Christian Financial Consultants, The New York Society of Security Analysts, The Society of Quantitative Analysts, and The Markets Technician Association. He is an active supporter of Athletes in Action, the Fellowship of Christian Athletes, Good News International Ministries, and Catholic Athletes For Christ. Through Athletes in Action, Grandich assisted with Bible study and chapel services for the New York Giants and New York Yankees from 2002 to 2016.

His autobiography, Confessions of a Wall Street Whiz Kid, was first published in 2011 and is now on its fourth printing.

Peter Grandich resides in New Jersey with his wife, Mary, and has one daughter, Tara. In 2015, he turned a three-decade dream into a reality by opening a storefront office in the “Norman Rockwell style” Jersey Shore town of Spring Lake. He then extended that vision by opening a satellite office in Millstone Township in 2019.