Jesse Felder: Deliberate Financial Repression Means You Need Gold
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Tom welcomes back Jesse Felder, publisher of The Felder Report to the show. Jesse provides a comprehensive analysis of current market conditions, highlighting several critical economic indicators suggesting significant potential risks ahead. He argues that the U.S. stock market is currently more overvalued than at any point since 1950, with valuation metrics indicating extremely limited upside potential and substantial downside risk. Felder emphasizes the market’s narrow breadth, noting an unprecedented number of trading days where the S&P 500 rose with fewer than 200 stocks driving gains. He also points to insider selling trends, which have been persistently bearish, signaling potential economic and earnings disappointments in the coming 12-24 months.

A key focus of his analysis is the declining U.S. dollar, which he sees as a critical indicator of broader economic shifts. Felder suggests the dollar’s weakness could catalyze a significant market correction, particularly given record foreign investment in U.S. markets and potential unwind of carry trades. Demographically and economically, Felder anticipates a stagflationary environment. He highlights how de-globalization and changing workforce demographics are creating inflationary pressures, while economic growth appears to be weakening. He sees particular opportunity in the energy sector, arguing that natural gas and oil are undervalued, with supply constraints and increasing electricity demand creating potential for a major bull market.

On monetary policy, Felder is skeptical of the Federal Reserve’s independence, suggesting potential political pressure could lead to more dovish policies aimed at managing government debt through financial repression. He draws parallels to historical periods like the 1971 Nixon shock, where currency devaluation and trade negotiations were used to address economic challenges. Ultimately, Felder recommends investors prepare for a potential market rotation, favoring natural resources and value stocks while being cautious of high-valuation momentum stocks. He sees gold and commodities as potential hedges against the anticipated economic environment of slower growth and persistent inflation.

Timestamps: 00:00:00 – Introduction 00:00:55 – Over Valuations & Markets 00:08:59 – Bearish Concerns? 00:11:04 – Surprise Correction Coming 00:13:23 – Treasury Cycles & Rates 00:15:44 – Dollar Demand Globally 00:20:36 – Fed & Powell’s Approach 00:23:37 – Fiscal Dominance & Inflation 00:28:02 – Big Picture Focus & Trends 00:29:36 – Stagflation Decade Ahead? 00:31:40 – Stablecoins & Treasuries 00:35:02 – Gold Mkts. & Fair Value 00:39:28 – Iran/Israel & Commodities 00:43:10 – Chevron/Exxon & Power 00:45:23 – Gold Demand Trends? 00:49:55 – Fed Q.E. & Gold Drivers 00:52:43 – Spending, Debt & Deficits 00:55:22 – Mkts. 6 Month Outlook 00:56:44 – Wrap Up

Guest Links: X: https://x.com/jessefelder) Website: https://thefelderreport.com/) Articles: https://thefelderreport.com/blog/)

Jesse Felder is the Founder, Editor, and Publisher of The Felder Report. He began his professional career at Bear, Stearns & Co. and later co-founded a multi-billion-dollar hedge fund firm headquartered in Santa Monica, California. Since moving to Bend, Oregon in 2000 and founding The Felder Report shortly thereafter his writing and research have been featured in major publications and websites like The Wall Street Journal, Barron’s, Yahoo!Finance, Business Insider, RealVision, Investing.com, and more. Jesse also hosts and produces the Superinvestors and the Art of Worldly Wisdom podcast.