What We’re Trading if Moderna Coronavirus Vaccine Fails

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Midas Letter

The Digital Businesss Channel for Cannabis, Crypto and Technology Stocks.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.

Joy of the Trade Head Trader Jeff Zananiri joined Midas Letter to discuss the reflationary measures set by the Fed since the onset of the Coronavirus epidemic.

Fed Chairman Jerome Powell said the central bank has flooded the economy with liquidity and will continue money printing programs for as long as the economy is in need.

“As a central bank, we have the ability to create money digitally. And we do that by buying Treasury Bills or bonds for other government guaranteed securities. And that actually increases the money supply. We also print actual currency and we distribute that through the Federal Reserve banks.”

With this precedent set, it is difficult for investors to be trading on commodities dependent on economic activity and growth. Instead, the head trader believers we can look towards inflationary sectors such as gold.

The Head Trader believes we are still set to witness waves of equity selling as the stock market is correlated to personal income. With the jobless rate at its all time high, even with the added liquidity provided by the Fed, the public may still have to sell their investments to make up for the decline in income.

As uncertainty plagues the market with US – China tensions, COVID-19 vaccine concerns and no clear timeline to when the economy/world will return to “normal”, gold prices have been rallying. Spot gold jumped to $1,764.73 per ounce Monday — a 7 year high dating back to October 2012.

Watch the full interview to see other ideas/trades worth considering with the current economic climate.

Midas Letter is provided as a source of information only, and is in no way to be construed as investment advice. James West, the author and publisher of the Midas Letter, is not authorized to provide investor advice, and provides this information only to readers who are interested in knowing what he is investing in and how he reaches such decisions.

Investing in emerging public companies involves a high degree of risk and investors in such companies could lose all their money. Always consult a duly accredited investment professional in your jurisdiction prior to making any investment decision.

Midas Letter occasionally accepts fees for advertising and sponsorship from public companies featured on this site. James West and/or Midas Letter may also receive compensation from companies affiliated with companies featured on this site. James West and/or Midas Letter also invests in companies on this site and so readers should view all information on this site as biased.